World Economy

JPMorgan Deploys $5B in Defense, Manufacturing Startups in First Year

JPMorgan Chase has invested $5 billion in startups during the inaugural year of its U.S. security and resiliency initiative. The bank is surpassing halfway toward its $10 billion target and may expand the program further, according to co-president Doug Petno. The pace exceeds expectations, reflecting robust opportunities across emerging defense, manufacturing and supply chain sectors. The bank has also financed and facilitated more than $230 billion in transactions under the broader initiative in its first year. Known investments include stakes in Hadrian, which manufactures automated facilities for aerospace and defense contractors, and Castelion, developing low-cost hypersonic missile technology. The initiative emerged from concerns over geopolitical instability, including conflicts in Ukraine and the Middle East alongside trade tensions with China, which threaten U.S. industrial and defense supply chains.