$600 Million Strong, Ballistic Ventures Eyes $100 Million More To Back Cyber’s Best

“If you are building a company in Cybersecurity, there is no better venture capitalist than Ted Schelin” said Jay Kaplan, CEO, Synack

Every partner at Ballistic Ventures has a long record of founding, leading and funding startups, and growing ideas into multibillion dollar enterprises and this time they have combined experts with an appetite to invest in the the cybersecurity ecosystem.

Founded in 2022 by industry veterans Barmak Meftah, Derek Smith, Jake Seid, Kevin Mandia, Roger Thornton, and Ted Schlein, the company focuses on early-stage investments in cybersecurity and security-related companies across the United States.

Schelin, whose legendary career in cybersecurity spanned over 35 years said in a statement “At Ballistic, we have assembled the who’s who in cybersecurity – a deep bench of the best operators, entrepreneurs and investors who have been at the forefront of industry for three decades,”

The United States has become the primary target for state-backed hackers and cybercriminals globally. To combat these persistent threats, Ballistic is committed to developing and expanding innovative technologies that will empower the nation against these adversaries.

Therefore this venture capital firm has dedicated itself exclusively to funding and incubating entrepreneurs and innovations in cybersecurity.

The cybersecurity industry’s rapid growth and evolving threats require specialized investors with a deep understanding of the landscape. Traditional investment models are insufficient; founders need seasoned operators who can provide strategic guidance and industry connections for sustainable growth.

Ballistic’s portfolio already includes standout startups such as Concentric AI, which uses AI to safeguard sensitive business data; Pangea, a platform offering security tools via APIs for developers; Nudge Security, which applies behavioral science to promote secure employee habits; and Veza, a data security company redefining identity and access controls.

Crunchbase reports that Ballistic has invested in 59 startups, including GetReal Labs, which recently announced a $17.5 million Series A funding round. Ballistic has also exited six investments.

Ballistic Ventures, has successfully secured a substantial total of $600 million in funding. This funding is distributed across two separate funds, both specifically dedicated to supporting early-stage cybersecurity startups. The initial fund, Fund I, was launched in 2022 and successfully raised $300 million. Following this, Fund II was launched in 2024 and also managed to raise an equivalent amount of $300 million, bringing the total capital under Ballistic Ventures’ management to $600 million. This significant funding capacity highlights Ballistic Ventures’ commitment to and strong position within the cybersecurity startup ecosystem.

Now in a new round, the San Francisco-based VC firm has planned to raise a minimum  of $100 million as filed with the U.S. SEC.

Despite a flat funding quarter-over-quarter in Q4 and a smaller number of deals during the year, venture investment in cybersecurity saw a 43% jump in 2024 compared to the previous year, as big rounds made a strong comeback. Crunchbase data reveals that total funding to VC-backed cybersecurity startups reached almost $11.6 billion last year, surpassing the $8.1 billion raised in 2023.

Ballistic Ventures, with its fundamental focus on cybersecurity investments, is keenly interested in the intersection of AI and cybersecurity. Their portfolio and public commentary highlight the recognition of AI’s transformative impact on both threat landscape and defense strategies.

It has invested in companies like Oligo Security, which utilizes AI/ML-applicable techniques like RASP and real-time analysis for threat detection and contextual prioritization. Their broader thesis also includes adapting to evolving threats, including AI-powered or AI-augmented threats like deepfake phishing, automated malware, and synthetic identity fraud.

The broader cybersecurity VC space, which Ballistic is actively shaping, is deeply involved in discussions around AI’s dual role as both a tool for attackers and a defense mechanism. As highlighted in a recent VentureBeat article, cybersecurity leaders are struggling to keep up with AI-powered threats, and VCs like Ballistic are likely adjusting their investments to support companies that can address these urgent challenges.

Therefore, while Ballistic may not explicitly brand itself as an “AI-first” investor, their focus on next-gen cybersecurity inherently aligns with AI’s growing role in both offense and defense. This trend is expected to intensify as threats become more automated and intelligent.