Ballistic Ventures Targets $490M Across Two Vehicles for AI Cybersecurity

Venture capital firm Ballistic Ventures is seeking $490 million across two new investment vehicles, according to regulatory filings. The firm, led by Kleiner Perkins veteran Ted Schlein, is targeting $360 million for its flagship fund and $130 million for a secondary vehicle, doubling down on its focused strategy in cybersecurity.

The expansion comes at a pivotal juncture for institutional venture capital. While generalist early-stage fundraising has slowed sharply across both North America and Europe, sector-specific strategies—particularly those operating at the intersection of enterprise security and artificial intelligence—continue to attract reliable LP commitments. The companion vehicle provides Ballistic with additional flexibility to deploy follow-on capital into outperforming portfolio assets without diluting flagship fund concentration.

For institutional limited partners, thematic funds focused on infrastructure and security offer a clear hedge against broader venture volatility. The proliferation of generative AI stack deployments across enterprises has introduced unprecedented attack surfaces, creating an immediate buyer pull for novel defense and governance platforms. Investors are increasingly favoring domain-expert teams capable of navigating technical due diligence and buyer networks far faster than generalist partners.

The fundraising push signals that despite muted deployment rates in late-stage tech, specialized early-stage strategies retain significant pricing power and capital-raising momentum. For European and American founders building in the AI defense and cybersecurity sectors, the entry of larger dedicated pools of capital will likely bolster early-stage valuations and lengthen runway expectations in a highly competitive market.