Ballistic Ventures, the cybersecurity-focused venture capital firm led by Ted Schlein, is moving to raise $490 million across two new investment vehicles. According to SEC filings submitted on November 2 and 3, 2026, the firm is targeting $360 million for its third flagship fund and an additional $130 million for a companion vehicle designated as “Fund B.”
The filings indicate that no capital has been officially recorded as sold or committed at the time of the submission. This fundraising effort maintains the firm’s established capital structure rather than signaling an aggressive expansion; the $360 million target for Fund III matches the size of Ballistic’s 2024 Fund II. Similarly, the $130 million sought for Fund B mirrors the size of the previous “Fund A” vehicle, which traditionally serves as a follow-on or opportunity fund for later-stage growth within the firm’s portfolio.
Strategic Positioning in the AI Cybersecurity Market
The fundraising comes during a period of heavy concentration in artificial intelligence within the security sector. Data through mid-2026 indicates that AI-enabled companies now account for 72% of all U.S. cybersecurity venture deals, a significant increase from 36% in 2019.
Ted Schlein, who serves as both Executive Chairman and Founding General Partner, has overseen a portfolio that has already produced notable exits. These include the acquisition of browser security startup Talon Cyber Security by Palo Alto Networks and the purchase of security-as-a-service provider Pangea by CrowdStrike. According to reporting from HyperAI, the firm’s consistent fund sizing suggests a disciplined approach to deployment despite the current peak in sector investment activity.
Fund Structure and Execution
The dual-fund strategy allows the firm to maintain its focus on early-stage innovation while retaining the capacity to support breakout companies as they scale. While Fund III is expected to lead initial seed and Series A rounds, Fund B provides the necessary liquidity to participate in subsequent funding cycles for high-performing portfolio companies.
The timing of the filings suggests Ballistic is moving to secure fresh dry powder as the industry grapples with new threats generated by generative AI and autonomous cyber-attacks. By keeping the flagship fund size stable at $360 million, the firm appears focused on maintaining the same investment cadence that defined its previous cycles. Detailed breakdowns of the new funds’ specific mandates have not yet been made public, though the firm’s historical focus has remained strictly within the cybersecurity ecosystem.