❯ Eric Trump-backed counter-drone company Space-Eyes to go public via SPAC at $638 million valuation

SPAC DEALAccording to Reuters, AI counter-drone and geospatial intelligence company Space-Eyes has agreed to go public through a merger with special purpose acquisition company McKinley Acquisition, at a post-merger valuation of $638 million, and plans to trade on Nasdaq under the ticker CUAS.

VALUATION GAPReuters reported that the company’s self-developed CATE AI fusion engine integrates multi-source sensor inputs, including radar and satellite, to identify and intercept drones threatening critical infrastructure and military bases. Annual revenue is about $1 million, with contracts under negotiation totaling about $35 million over five years — the valuation is more than 600 times current revenue. The deal is additionally backed by up to $75 million in PIPE financing, with closing expected in the fourth quarter. The Trump family has repeatedly participated in similar structures; last year they backed a $300 million SPAC focused on U.S. manufacturing. Eric Trump recently became the company’s third-largest individual investor, will serve as strategic advisor after the deal closes, and has already recommended board candidates to the new company.

WHAT'S BEING BOUGHTUnder the deal terms reported by Reuters, the $638 million figure clearly corresponds not to that $1 million in revenue but to access to government contracts — counter-drone is currently one of the fastest-growing segments in U.S. government procurement, and getting on the list matters more than having the better algorithm. This class of targets puts an explicit price tag on political relationships, and the most direct impact lands on the fundraising narrative of startups in the same lane: beyond technology, investors start asking who you know.

▪ SIGNAL$1 million in revenue holding up a $638 million valuation — what’s being priced is the door to government procurement.