Trump Sons’ Drone Investments Draw Scrutiny Amidst Iran Conflict
A fund with ties to President Donald Trump’s sons, Donald Trump Jr. And Eric Trump, has significantly increased its investments in drone technology companies, raising questions about potential conflicts of interest as unmanned aircraft play a growing role in global conflicts, particularly in the ongoing tensions with Iran.
From Fitness Centers to Drone Warfare
American Ventures, the fund where Trump Jr. And Eric Trump are partners, initially invested in seemingly unrelated companies – a construction firm specializing in Orange Theory Fitness locations and an operator of two Florida golf courses – last year. However, both companies have since pivoted towards the drone industry, a sector now central to the U.S. And Israel’s military strategies.1
Expanding Drone Portfolio
Since 2024, the Trump sons have backed at least three drone companies, all based in Florida, which is strategically located near the U.S. Military’s Central Command and President Trump’s Mar-a-Lago estate.1 This expansion into drone technology coincides with a period of significant financial gains for the Trump family, with ventures extending into areas like cryptocurrency.
$750 Million in Drone Stakes
American Ventures currently holds stakes in drone firms valued at approximately $750 million (USD), according to data compiled by Bloomberg.2 This investment surge is occurring as the Pentagon plans to spend around $1 billion on drone-related technology over the next two years.1
Key Companies and Deals
Recent deals include a reverse merger involving Powerus, a drone company co-founded by Brett Velicovich, a former Delta Force intelligence analyst. Powerus is seeking to scale production to 10,000 drones per month.1 Another deal involves Xtend, an Israeli drone maker, also utilizing a similar reverse-merger strategy.1 Dominari Holdings, a Trump-backed investment bank, advised on both transactions and Unusual Machines, a drone-parts maker with Trump Jr. As an advisor, also participated.1
Concerns Over Conflicts of Interest
Experts have raised concerns about potential conflicts of interest as the Trump-backed firms seek government contracts. Stacie Pettyjohn, director of the defence program at the Centre for a New American Security, noted the complications this creates for government contracting processes.1 Xtend has already received a “multimillion-dollar” Defence Department contract, and Powerus’ subsidiaries also sell products to the U.S. Government.1
Drone Dominance Initiative
The U.S. Defence Department’s “Drone Dominance” initiative, introduced under the Trump administration, aims to equip forces with hundreds of thousands of unmanned aircraft.1 This initiative has spurred demand for drones capable of various functions, including attack, surveillance, and supply delivery.
Industry Outlook
While the drone industry is experiencing rapid growth, Pettyjohn cautioned that not all manufacturers will be sustainable in the long term.1