Ballistic Ventures targets $490M for AI-focused cybersecurity funds
Ballistic Ventures, a San Francisco-based venture capital firm co-founded by Ted Schlein, plans to raise $490 million across two new funds. The firm filed with the U.S. Securities and Exchange Commission for $360 million in its third flagship fund and $130 million in Fund B, both targeting cybersecurity startups amid growing AI-driven threats.
Key points
- Ballistic Ventures seeks $360M for its third flagship fund and $130M for Fund B, totaling $490M
- AI-enabled cybersecurity deals now make up 72% of U.S. venture activity in the sector through May 2026
- Microsoft warns AI is enabling faster, larger-scale cyberattacks via phishing, malware, and social engineering
The move follows a surge in AI-enabled cybersecurity investments: U.S. startups in the sector raised $11.5 billion in 2025, with AI-backed deals accounting for 72% of venture activity through May. Microsoft’s latest report highlights how attackers use AI for phishing, malware, and social engineering, accelerating attacks. Ballistic’s portfolio includes Talon Cyber Security (acquired by Palo Alto Networks) and Oligo Security, backed by its founding team—including former AT&T Cybersecurity president Barmak Meftah and Roger Thornton, co-founder of Fortify Software.
Ted Schlein’s Ballistic Ventures seeks $490M for new funds amid AI-driven cybersecurity boom
TechCrunch AI · 3 November 2026
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