90% of SPACs Flop… Here's Why This One’s Built to Feed Off the Government Money Hose

There’s an old saying in marketing: there’s no such thing as bad publicity. Well, the Trump family seems to have taken that idea and built an entire business strategy around it. Because whether it’s politics, branding, or business ventures, when critics yell “conflict of interest,” the Trumps tend to hear “customer acquisition cost: $0.”

Over the past few years, the Trump orbit has tried to monetize just about everything under the sun… phones, media platforms, even cryptocurrency. Some of it worked, some didn’t (we’ll get to GrabAGun in a minute). But now Don Jr. and Eric Trump are launching a new venture that lands squarely in the financial world: New America Acquisition I Corp, a SPAC, or special purpose acquisition company.

If you haven’t thought about SPACs since 2021, pat yourself on the back because you’ve probably been making smarter investment choices than most Reddit traders. But here's the quick refresher: SPACs raise money via IPO, then go shopping for a private company to merge with. It's like Shark Tank, except the sharks already raised the money and just need someone vaguely patriotic to swim toward.

In this case, New America wants to raise $300 million and is targeting a company with at least $700 million in enterprise value. And the plan is pretty simple: They want to buy something big, American-made, and eligible for federal funding (like yesterday).

Now, if you actually read the SEC filing (I’m guessing you didn’t if you’re reading this article), you’ll see phrases like “revitalize domestic manufacturing,” “expand innovation ecosystems,” and “strengthen critical supply chains.” Which sounds like a bunch of lawyer language until you realize it’s pretty much a federal grant application disguised as a business plan. (The only thing missing is a bald eagle and a Lee Greenwood soundtrack.)

But that’s the play. This is nothing more than a tactical move to scoop up a business already sitting in the federal money flow. With Trump back in the Oval Office and industrial policy running hot (think defense manufacturing, rare earth minerals, and “reshoring everything that’s ever touched China”... this SPAC isn’t having to rely on market momentum. It’s betting on government inertia (smart). So if you make drones, mine lithium, build semiconductor fabs, or operate anything that could be called “critical infrastructure” with a straight face, New America is probably emailing you this second.

One thing that caught my eye was that they didn’t rule out crypto. Maybe that’s just hedging their bets, or maybe it’s the backup plan if the manufacturing angle doesn’t pan out. Worst case scenario? They follow the Michael Saylor playbook and just dump the war chest into Bitcoin. (Because when all else fails, you can always rebrand your industrial SPAC as a “digital asset strategy vehicle” and hope the market forgets what you were originally trying to build.)

And this time around (unlike previous ventures) Don Jr. and Eric aren’t just figureheads… they’re sitting on 5 million founder shares, which means if this thing lands a deal and trades above $10, they’re staring down a potential eight-figure payday. Let’s just hope for their sake it goes better than GrabAGun. (You know, the one that tanked 57% after going public. I guess we all learned calling yourself the “Amazon of guns” doesn't guarantee you’ll print money.)

Even less surprising is that the underwriter of this deal is Dominari Securities, which is headquartered in (drumroll) Trump Tower. Naturally, both Trump sons are listed as advisers. Their parent company, Dominari Holdings, conveniently popped 580% in the six weeks leading up to the announcement (so take that for what it’s worth).

Obviously, SPACs haven’t exactly been crushing it since 2021 (unless your definition of success is trading below $5 and quietly disappearing). But this one’s a little different… it's directly tied to Trump’s economic agenda, and when your last name happens to match the guy signing the federal checks, that kind of access tends to open doors (or at least get your calls returned). Sure, it’s still a gamble (this is a SPAC, not a savings bond) but if you’re going to roll the dice, this might be one worth watching.

At the time of publishing this article, Stocks.News holds positions in Amazon as mentioned in the article.