Updated
Updated · TechCrunch · Nov 3
Ballistic Ventures Seeks $490 Million for 2 Funds as AI Cybersecurity Deals Surge
Updated
Updated · TechCrunch · Nov 3

Ballistic Ventures Seeks $490 Million for 2 Funds as AI Cybersecurity Deals Surge

1 articles · Updated · TechCrunch · Nov 3

Summary

  • $490 million in new fundraising targets would give Ballistic Ventures a $360 million third flagship fund and a $130 million Fund B, according to SEC filings that showed no sales yet.
  • The push comes as AI is reshaping cybersecurity on both sides: startups are drawing more investor interest while hackers use the technology to scale phishing, social engineering and malware development faster.
  • U.S. cybersecurity startups raised $11.5 billion in 2025, the strongest total since 2022, and AI-enabled companies made up about 72% of U.S. cybersecurity venture deals through May, up from 36% in 2019.
  • Founded in 2021 by Ted Schlein and other security veterans, Ballistic has already raised a $300 million debut fund, a $360 million second flagship fund and about $130 million for Fund A.

Insights

As AI fuels a massive cyber arms race, will Ballistic's $490 million bet uncover the ultimate defense or just inflate startup valuations?
With billions pouring into AI security, are we actually building safer networks or just financing an endless predator-prey cycle in cyberspace?