President Donald Trump's two sons have invested in drone startup Powerus as the administration moves to expand the drone industry.
The investment came after the Trump administration designated the drone sector as critical to national security and the future economy. Analysts expect significant returns as the government plans to massively expand military drone capabilities while restricting Chinese-made drones.
The Wall Street Journal reported on Friday that Donald Trump Jr. and Eric Trump invested in drone developer Powerus. The investment was made through American Ventures and Unusual Machines, entities in which the brothers are involved. Dominari Securities, which they also back, served as lead manager. South Korean activist fund KCGI also invested $50 million through its "Innovation and Growth ESG Fund."
Powerus is an autonomous drone systems developer co-founded by Brett Velicovich, a former U.S. Army Special Operations veteran. The company is acquiring Ukrainian drone firms or licensing their technology to manufacture drones domestically in the United States. Powerus is pursuing a Nasdaq listing through a merger with Aurius Greenway Holdings (AGH), a publicly traded golf course operator in which the Trump family has invested.
The sons' investment in the startup aligns with the administration's drone policies. Since last year, President Trump has pursued a strategy to exclude Chinese-made drones to strengthen domestic industry and national security. The Defense Department's "Drone Dominance" program will invest approximately $1.1 billion through next year to procure 300,000 low-cost military drones and significantly expand approved U.S.-made drones at military facilities. The department has also banned purchases of drones produced by certain foreign companies, effectively excluding Chinese-made products.
Eric Trump has also invested in Israeli drone manufacturer Xtend, which is pursuing a public listing through a merger with JFB Construction.
"Powerus has acquired three companies over the past six months and is now selling aerial and maritime drones," said Andrew Fox, CEO of Powerus. "Our goal is to produce more than 10,000 drones per month, which would exceed the output of all U.S. drone manufacturers combined and far surpass what the Defense Department has purchased in the past."