Cybersecurity-focused Ballistic Ventures filed with the SEC to raise $360 million for a third flagship fund and $130 million for a separate vehicle called Fund B. The firm, co-founded by Ted Schlein, aims to raise a total of $490 million across the two new funds. Neither of the new funds had recorded any sales at the time of the regulatory filing.
The fundraising plans come as AI use raises concerns about more sophisticated cyberattacks and creates new opportunities for startups. U.S. cybersecurity startups raised $11.5 billion in 2025, the highest amount since 2022. AI-enabled companies accounted for about 72% of U.S. cybersecurity venture deals through May 2026, up from 36% in 2019.
Investors are pouring capital into the sector to defend against evolving digital threats and capture the growth of AI-driven security solutions. The surge in funding reflects a shift where artificial intelligence has become central to the cybersecurity landscape. This trend suggests that the market for AI-enabled security tools will continue to expand rapidly in the coming years.
