Ballistic Ventures seeks $490M for AI-driven cybersecurity funds

Ballistic Ventures, a venture capital firm focused on cybersecurity, has filed to raise $490 million across two new funds, according to regulatory documents seen by TechCrunch. The firm aims to secure $360 million for its third flagship fund and $130 million for a separate vehicle, Ballistic Ventures Fund B. No sales had been recorded at the time of filing.

The fundraising effort follows a surge in AI-enabled cyberattacks and a corresponding rise in venture capital interest in the sector. According to a JPMorgan Chase report, U.S. cybersecurity startups raised $11.5 billion in 2025, with AI-enabled companies making up about 72% of deals through May. Ballistic Ventures, founded in 2021, has previously backed firms acquired by major players like Palo Alto Networks and CrowdStrike.

Ballistic's leadership includes former Kleiner Perkins partner Ted Schlein and experienced cybersecurity executives. Its strategy is seen as similar to other specialist investors, but its connections to established venture firms may offer an edge. The firm declined to comment on the fundraising plans.

Microsoft has also warned that AI is accelerating the pace and scale of cyberattacks. Senior executives in regulated sectors should monitor how AI is changing the risk environment and influencing where capital flows in cybersecurity.