Ballistic Ventures, the cybersecurity-focused venture capital firm co-founded by industry veteran Ted Schlein, has filed with the Securities and Exchange Commission (SEC) to raise $490 million across two new investment vehicles. The move signals a continued commitment to early-stage security startups as the industry grapples with an “AI arms race” that has reshaped the threat landscape.
According to regulatory filings submitted on November 2, 2026, the firm is seeking $360 million for its third flagship vehicle, Ballistic Ventures Fund III, and an additional $130 million for a companion entity designated as Ballistic Ventures Fund B. As of the filing date, neither fund had recorded any capital sales from investors. The $360 million target for Fund III matches the size of the firm’s second flagship fund raised in 2024, despite a broader uptick in global cybersecurity spending.
The fundraising effort arrives at a time when artificial intelligence has become the primary driver of cybersecurity investment. Analysis of the 2026 venture landscape shows that AI-enabled companies accounted for 72% of all U.S. cybersecurity venture deals through May of this year. Ballistic has positioned itself at the center of this shift, with a portfolio that includes deepfake detection specialist GetReal and identity security firm Nudge Security.
Strategic Continuity and Market Position
The structure of the new raise follows Ballistic’s established playbook. Fund III serves as the primary investment vehicle, while Fund B appears to function as a “companion” or opportunity fund, similar to the $130 million Fund A raised alongside their previous flagship. This dual-fund approach allows the firm to maintain its focus on seed and Series A rounds while retaining capital to support breakout companies as they scale.
Led by a team of high-profile security practitioners, Ballistic Ventures was founded by Schlein, who spent over 25 years as a general partner at Kleiner Perkins, alongside Barmak Meftah, Roger Thornton, Jake Seid, and Kevin Mandia. The firm’s investment thesis centers on the premise that traditional security architectures are insufficient against AI-generated threats and automated exploits.
The firm has already seen early validation of its strategy through several high-profile exits. Notable portfolio successes include Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was recently brought under the CrowdStrike umbrella. These exits have helped establish Ballistic as a specialized alternative to generalist firms during a period of intense consolidation in the security market.
While the broader venture capital market has faced a “reset” in valuations over the last two years, cybersecurity has remained a resilient sector. Total funding in the space hit $11.5 billion in 2025, driven largely by the necessity of defending against generative AI attacks and securing increasingly complex cloud environments. Ballistic Ventures declined to comment on the specific details of the new filings or the anticipated timeline for the final close of the funds.