The Trump administration is reportedly in talks to provide funding to several drone companies, including Unusual Machines and Neros, a startup backed by Sequoia Capital. Shares of Unusual Machines surged 37% in premarket trading after the news.
According to the Wall Street Journal, the discussions between private sector firms and the Pentagon have included the Office of Strategic Capital, a lending unit focused on companies critical to national security supply chains.
Other companies under consideration for possible funding include Performance Drone Works, which won a contract to supply the U.S. Army with reconnaissance drones.
Some proposals being discussed include funding via a mix of debt and equity that could give the government ownership stakes.
