Ballistic Ventures Seeks $490M for Security Funds
Neither fund had recorded any sales at the time of its SEC filing, so the targets remain goals rather than closed capital.
Updated on Nov. 3, 2026 in Cybersecurity
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San Francisco-based cybersecurity investor Ballistic Ventures is seeking $490 million across two new funds, a sign that money is still flowing to security startups as AI reshapes the threat landscape. The firm filed with the Securities and Exchange Commission to raise $360 million for its third flagship fund and $130 million for a separate vehicle, Ballistic Ventures Fund B.
Why it matters
For people who live and work here, the rise of AI-driven phishing and malware is a direct concern, and the local venture firms backing defensive companies are one signal of how the city's tech economy is responding. Neither fund had recorded any sales at the time of filing, so the amounts are targets rather than money in hand.
The SEC filings show a $490 million total target and a $360 million flagship fund, up from a $300 million debut in 2022. Industry-wide, U.S. cybersecurity startups raised $11.5 billion in 2025, and 72% of deals through May were AI-enabled, up from 36% in 2019. Neither fund had recorded any sales at filing, so the amounts remain goals rather than closed capital.
The players
Ballistic Ventures
A San Francisco cybersecurity-focused venture capital firm that has backed Talon Cyber Security, later acquired by Palo Alto Networks, and Pangea, later bought by CrowdStrike.
Ted Schlein
Co-founder of Ballistic Ventures and a longtime figure in the cybersecurity investment world.
U.S. Securities and Exchange Commission
The federal regulator where Ballistic Ventures filed its fund-raising paperwork.
The details
Ballistic Ventures, a cybersecurity-focused venture firm co-founded by Ted Schlein, filed paperwork with the U.S. Securities and Exchange Commission to raise $360 million for its third flagship fund. The firm also filed to raise $130 million for a separate vehicle called Ballistic Ventures Fund B, which is targeting a similar amount to Fund A. The filings are the firm's stated plans; the SEC process itself does not commit investors to either fund.
Timeline
Late 2021: Ballistic Ventures was founded in San Francisco.
2022: The firm announced a $300 million debut fund.
2024: Ballistic raised $360 million for its second flagship fund, two years after its debut.
November 3, 2026: The firm filed SEC paperwork for the $490 million raise.
Across the Bay
Ballistic's $300 million debut in 2022 was the starting point for a fund that now seeks $360 million, roughly 20 percent larger. The firm's earlier bets on Talon and Pangea, both since acquired by larger security companies, show the exit pattern that has drawn investors to funds like this one.
If you work in security or follow the city's startup scene, this fundraising signals where investor money is heading as AI threats grow. Watch for whether Ballistic's targets close and which companies receive backing from the new funds in the coming months.
The takeaway
Venture money is still moving toward cybersecurity even as AI changes the threat, and Ballistic's filings are targets rather than closed funds. Watch for whether the $490 million total is raised and which startups receive backing from the new vehicles.
Further reading
For more on how security companies are being built and funded here, see our Cybersecurity coverage.
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