SEC filings show Ballistic Ventures seeking $490M for AI security funds

TechCrunch reported that cybersecurity-focused venture capital firm Ballistic Ventures filed with the U.S.reported Filed with the SEC this week to raise $490 million for two new funds.reportedThe firm filed paperwork to raise nearly half a billion dollars for two new investment pools.Regulatory filings disclose a $490M fundraising target split between a $360M main fund and a $130M secondary vehicle. The San Francisco-based firm filed to raise $360 million for its third flagship fund, a sum equal to its 2024 fund.reported Additionally, the firm is pursuing $130 million for a separate vehicle named Ballistic Ventures Fund B.reported At the time of the filing, neither fund had recorded any sales.

The announcement

Former Kleiner Perkins partner Ted Schlein’s Ballistic Ventures is raising $490 million for two new funds.reported The new Fund B targets a similar amount.

The context

A recent JPMorgan Chase report, which cites PitchBook data, states that U.S. cybersecurity startups raised $11.5 billion in 2025, marking the highest amount since 2022.reported According to the report, AI-enabled firms represented approximately 72% of U.S. cybersecurity venture transactions through May of this year, up from 36% in 2019.reported This surge coincides with growing concerns about sophisticated cyberattacks driven by artificial intelligence.

Reading between the lines

Last month, Microsoft’s annual Digital Defense Report cautioned that cybercriminals are increasingly leveraging artificial intelligence for phishing, social engineering, and malware creation. Venture capital firms and cybersecurity startups are finding new opportunities due to the emergence of AI agents. A cybersecurity investor at a different venture capital firm told TechCrunch that Ballistic’s investment approach mirrors that of other cybersecurity-focused investors, such as Forgepoint Capital and Ten Eleven Ventures.

The business case

For platform architects, the capital flow signals continued vendor consolidation and innovation in AI-security tools. Ballistic Ventures has invested in Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was purchased by CrowdStrike. The firm also supports startups like Armadin, GetReal, Nudge Security, and Oligo Security. That suggests vendors with AI-native defenses may receive sustained funding to integrate with broader security architectures.