Ballistic Ventures is seeking to raise $490 million across two new funds to capitalize on the cybersecurity boom driven by artificial intelligence. Regulatory filings reveal the San Francisco-based venture capital firm aims to raise $360 million for its third flagship fund and $130 million for a separate vehicle called Ballistic Ventures Fund B.
The fundraising initiative comes as the expanding adoption of artificial intelligence introduces more sophisticated cyberattacks and drives demand for AI agents. Founded in late 2021 by industry veterans including Ted Schlein, Barmak Meftah, and Roger Thornton, the firm previously backed notable startups like Talon Cyber Security and Pangea. U.S. cybersecurity startups captured $11.5 billion in 2025, with AI-enabled companies accounting for approximately 72% of venture deals through May of this year.
This surge in funding mirrors growing industry warnings about AI-powered threats from major technology players like Microsoft. Ballistic Ventures declined to comment on its ongoing fundraising efforts as it targets capital to back the next generation of security startups.