Funding for US drone businesses is negotiated by the Trump administration
According to people familiar with the situation, the Wall Street Journal reported on Wednesday that the Trump administration is discussing financing for a number of drone businesses, including Unusual Machines and Neros, which are supported by Sequoia Capital.
During premarket trading on Thursday, shares of Unusual Machines increased by 37%.
In his $1.5 trillion defense budget request for fiscal year 2027, President Trump referred to dominance of the drone market as a «presidential priority.»
The Office of Strategic Capital, a Biden-era loan division that concentrated on businesses essential to national security supply chains, was involved in the months-long discussions between private sector firms and the Pentagon, according to the Journal.
Neros is a firm focused on autonomous drones, whereas Unusual Machines is a drone component manufacturer with Donald Trump Jr. as an advisor.
According to the source, Performance Drone Works, which was awarded a contract to provide the U.S. Army with reconnaissance drones, is also being evaluated for possible funding.
According to the newspaper, some of the ideas being discussed include funding through a mix of debt and equity that might provide the government equity shares.
Shares of Aureus Greenway, which is set to acquire drone technology company Powerus, surged nearly 30% in premarket trading. The deal also has the backing of the Trump family.
Shares of other U.S. drone companies, including Red Cat, Kratos Defense, AeroVironment, and Swarmer, rose between 7% and 13% in premarket trading on Thursday.
