In a move that highlights the ongoing demand for cybersecurity investments, Ballistic Ventures, a venture capital firm dedicated to funding and incubating cybersecurity startups, has filed with the U.S. Securities and Exchange Commission (SEC) to raise as much as $300 million for its second fund.
Background on Ballistic Ventures
Ballistic Ventures is a San Francisco-based VC firm that was co-founded by Kleiner Perkins’ general partner Ted Schlein, along with Barmak Meftah, Jake Seid, and Roger Thornton as the three other general partners. The firm also has Mandiant founder Kevin Mandia as its strategic partner and Derek Smith as a strategic advisor.
Recent Developments
This filing comes over a year after Ballistic Ventures launched its first fund of the same amount in May 2022. The VC firm has so far backed a dozen startups, per the details available on the firm’s website. Notably, Ballistic says it has founded, operated, and funded over 90 cybersecurity firms.
Investment in Cybersecurity
Despite investment in cybersecurity in 2023 being below record highs of previous years, investors are optimistic about growth in cybersecurity startups and investments with predominant advancements in generative AI and cloud deployments. The VC firm also recently appointed former U.S. National Cyber Director Chris Inglis and U.S. cybersecurity agency CISA former chief of staff Kiersten Todt as advisors.
Funding Trends
According to PitchBook data shared with TechCrunch, venture funding for cybersecurity startups worldwide dropped over 14% to $2.4 billion in the third quarter of 2023, from $2.8 billion in the same quarter last year. The number of deals done during the most recent quarter also decreased from 248 to 198.
Cybersecurity Industry Growth
Nonetheless, as the digital economy expands globally, cyberattacks and online crimes have become more prevalent. Investors are optimistic about growth in cybersecurity startups and investments due to predominant advancements in generative AI and cloud deployments.
Ballistic Ventures’ Portfolio
Some of the notable startups that Ballistic has invested in include AuthMind, Oligo, and Nudge Security. The firm’s portfolio also includes other prominent cybersecurity companies.
Key Takeaways
- Ballistic Ventures is aiming to raise $300 million for its second fund.
- The VC firm was co-founded by Kleiner Perkins’ general partner Ted Schlein, along with Barmak Meftah, Jake Seid, and Roger Thornton as the three other general partners.
- Ballistic has so far backed a dozen startups, per the details available on the firm’s website.
- Venture funding for cybersecurity startups worldwide dropped over 14% to $2.4 billion in the third quarter of 2023.
Conclusion
Ballistic Ventures’ move to raise $300 million for its second fund highlights the ongoing demand for cybersecurity investments. Despite investment trends being below record highs of previous years, investors are optimistic about growth in cybersecurity startups and investments due to predominant advancements in generative AI and cloud deployments.