Ted Schlein’s Ballistic Ventures, a venture capital firm focused on cybersecurity, is planning to raise $490 million through two new funds amid a surge in AI-driven cybersecurity innovation. This includes a $360 million flagship fund, matching the size of its 2024 fund, and a $130 million separate investment vehicle labeled Ballistic Ventures Fund B. Founded in late 2021, the firm’s leadership features Schlein alongside cybersecurity veterans Barmak Meftah and Roger Thornton. Ballistic Ventures has a portfolio of notable exits including Talon Cyber Security’s acquisition by Palo Alto Networks and Pangea’s purchase by CrowdStrike.

The firm’s fundraising efforts reflect growing investor interest as artificial intelligence increasingly fuels both cybersecurity threats and defensive technology. According to a report by JPMorgan Chase, U.S. cybersecurity startups raised $11.5 billion in 2025, with AI-enabled companies making up roughly 72% of venture deals this year, up from 36% in 2019. Microsoft’s recent Digital Defense Report also highlights how hackers leverage AI to escalate attacks ranging from phishing to malware, underscoring the urgent demand for advanced security solutions.

Ballistic Ventures distinguishes itself through the industry experience of its founding team and its ties to Kleiner Perkins, where Schlein spent over two decades. The firm’s investment strategy aligns with peers such as Forgepoint Capital and Ten Eleven Ventures, focusing on enterprises innovating to combat increasingly sophisticated cyber threats powered by AI. The ongoing fundraising follows Ballistic’s prior efforts, with a $300 million debut fund in 2022 and subsequent vehicles raising similar amounts, aimed at backing startups at the forefront of the cybersecurity space.

As the cybersecurity ecosystem adapts to the AI era, Ballistic Ventures aims to capitalize on new opportunities created by AI-driven cybercrime risks. Schlein’s firm is positioning itself to support startups developing novel products that secure AI agents and infrastructure, a market that is rapidly expanding but also seeing growing complexity in both attack vectors and defensive requirements. The firm declined to comment publicly on its current fundraising plans but remains a key player in the evolving cybersecurity venture landscape.