RSE Ventures and Ondas Inc. (NASDAQ: ONDS) announced a co-led strategic investment in FPF Defense, a defense technology company developing a counter-unmanned aerial system called SmartFlak, which includes the Hammerhead kinetic interceptor designed to destroy one-way attack drones.

FPF Defense is led by Christopher C. Miller, former Acting Secretary of Defense, who serves as CEO. The company's chief technology officer is Dr. Jeff Maas, a former DARPA program manager. Grant Fox, with experience from the U.S. Navy and the Defense Innovation Unit, serves as chief operating officer.

The SmartFlak system targets what the company describes as a cost-asymmetry problem in air defense. Shahed-class attack drones cost adversaries roughly $50,000 each to produce, while legacy missile interceptors used to counter them can cost millions of dollars per shot. FPF states its Hammerhead interceptor is engineered for a cost per shot in the low tens of thousands of dollars.

As part of the investment, FPF Defense will relocate its headquarters to West Palm Beach, Florida, where both RSE Ventures and Ondas are also headquartered. The company plans to use the investment to accelerate development and production of the Hammerhead interceptor, establish U.S.-based manufacturing with a domestically compliant supply chain, expand engineering staff, and build out its headquarters and operational infrastructure.

FPF Defense joins RSE Ventures' defense portfolio alongside Performance Drone Works, a combat robotics manufacturer specializing in Group 1-3 unmanned aerial systems.

"Ondas is focused on solving the most critical challenges in autonomous and counter-drone warfare," said Eric Brock, CEO of Ondas. "FPF cleared that bar immediately with a proven team, a disruptive cost advantage, and a mission-critical capability that the nation requires at scale."

The investment deal was led by Nick Perkins, senior vice president of defense and industrialization at RSE Ventures. Financial terms of the investment were not disclosed.