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 a total of $490 million across two new investment vehicles.
The planned capital includes $360 million for the firm’s third flagship fund, Ballistic Ventures Fund III, and an additional $130 million for a separate vehicle designated as Ballistic Ventures Fund B. The filing, recorded on November 3, 2026, indicated that no sales had been finalized for either fund at the time of the submission.
This fundraising effort follows a consistent scaling pattern for the firm. The $360 million target for Fund III exactly matches the size of its 2024 predecessor, Fund II. Similarly, the $130 million sought for Fund B acts as a successor to the previous $130 million Fund A vehicle, suggesting a tiered strategy focused on maintaining stable check sizes across different investment stages.
The push for new capital coincides with a period of intensified activity in the security sector, largely driven by the integration of artificial intelligence. Reports indicate that AI-enabled companies accounted for approximately 72% of all U.S. cybersecurity venture deals through May 2026.
Ballistic Ventures has positioned itself within this market through a specialized model that includes a “CISO-in-residence” program and a focus on early-stage incubation. The firm was established by Schlein, a former general partner at Kleiner Perkins, alongside Barmak Meftah, formerly of AlienVault and AT&T Cybersecurity, and Roger Thornton, a co-founder of Fortify Software. Since its debut with a $300 million fund in 2022, the firm has quickly moved to capitalize on sector exits.
Recent portfolio activity highlights the firm’s focus on enterprise-grade security solutions. Notable exits include the acquisition of Talon Cyber Security by Palo Alto Networks and the purchase of Pangea by CrowdStrike. These transactions occurred as the industry continues to consolidate around providers offering automated threat detection and developer-first security tools.
The firm’s investment strategy typically targets specific AI-driven shifts in the threat landscape, ranging from automated malware production to the security of AI agents themselves. By maintaining the same fund size as its 2024 flagship, Ballistic appears to be prioritizing specialized deployment over rapid assets-under-management growth in an increasingly crowded venture landscape.