Cybersecurity-focused venture capital firm Ballistic Ventures is seeking to raise a total of $490 million across two new investment funds, according to regulatory filings submitted by the company to the U.S. Securities and Exchange Commission.
The new funding plan includes raising $360 million for its third flagship fund, which is the same size as its previous fund raised in 2024, in addition to $125 or $130 million for a separate investment vehicle named Ballistic Ventures Fund B. Neither had recorded any sales at the time of the regulatory filings.
Cybersecurity and AI Surge
The fundraising plans come at a time when the increasing proliferation of artificial intelligence technologies has led to rising concerns regarding more complex and sophisticated cyberattacks. At the same time, the rise of AI agents has provided new opportunities for cybersecurity startups and the venture capital firms that support them.
Ballistic Ventures was founded in late 2021 by a team including Ted Schlein, Parmak Miftah, and Roger Thornton. The company has supported several prominent companies in the sector, including Talon Cyber Security, which was acquired by Palo Alto Networks, and Pangea, which was purchased by CrowdStrike, alongside startups such as Armadin, GetReal, Nudge Security, and Oligo Security.
What is Practically Changing in Cybersecurity Funding?
The cybersecurity sector is witnessing significant growth in institutional funding; cybersecurity startups in the United States raised $11.5 billion in 2025, achieving the highest level since 2022 according to PitchBook data cited in a recent JPMorgan Chase report. AI-powered companies accounted for approximately 72% of cybersecurity venture capital deals in the United States during the months leading up to May, compared to 36% in 2019.
On the risk side, Microsoft warned in its recently released annual Digital Defense Report that hackers are increasingly relying on artificial intelligence for activities including phishing, social engineering, and malware development, allowing attackers to operate with greater speed and at a wider scale.