AI Fuels

AI is making hackers faster, and investors are betting heavily on the companies built to stop them. Ballistic Ventures, the cybersecurity-focused firm co-founded by former Kleiner Perkins partner Ted Schlein, has filed to raise $490 million across two new funds, according to TechCrunch. Quick Facts What the Filings Show Ballistic filed paperwork this week with the U.S. Securities and Exchange Commission. The flagship fund matches the size of its 2024 predecessor, while Fund B is a separate vehicle. TechCrunch reports that the firm raised about $130 million for a similar vehicle, Ballistic Ventures Fund A, according to PitchBook data, so Fund B targets a comparable amount. The Firm’s Track Record Ballistic launched in late 2021 with a $300 million debut fund announced in 2022, then raised another $360 million two years later. Its founding team includes Schlein, former AT&T Cybersecurity president Barmak Meftah and Roger Thornton, who co-founded Fortify Software and AlienVault. Notable portfolio results include: What Sets Ballistic Apart A cybersecurity investor at another firm told TechCrunch that Ballistic’s ties to Kleiner Perkins, where Schlein spent more than two decades, help it stand out. The person added that its investment approach resembles that of rivals such as Forgepoint Capital and Ten Eleven Ventures. Why Cybersecurity Funding Is Surging AI has changed both sides of the security equation. A JPMorgan Chase report citing PitchBook data found that U.S. cybersecurity startups raised $11.5 billion in 2025, the highest total since 2022. AI-enabled companies made up about 72% of U.S. cybersecurity venture deals through May this year, versus 36% in 2019. The Threat Side of the Story Microsoft’s annual Digital Defense Report, released last month, warned that attackers are increasingly using AI for phishing, social engineering and malware development. The technology lets them work faster and at greater scale, even though many of their core techniques haven’t changed. The rise of AI agents has also created new security gaps that startups aim to fill. What It Means for Founders and Investors Fundraising filings don’t guarantee a fund will close at its target, so these numbers represent goals rather than committed capital. What Readers Are Asking How much is Ballistic Ventures raising? It’s seeking $490 million across two funds. Who founded the firm? Ted Schlein, Barmak Meftah and Roger Thornton. Which exits has it had? Talon (to Palo Alto Networks) and Pangea (to CrowdStrike). Why are investors piling into cybersecurity? AI-driven attacks are increasing demand for new defenses. What to Watch Next Look for first closes on the new funds, new portfolio announcements and further acquisitions of AI-security startups by larger cybersecurity companies. Source: TechCrunch