DALLAS — Defense technology startup Covenant has emerged from two years of stealth operations with more than $250 million in venture funding, introducing Anthem, a ground-launched, long-range precision strike cruise missile designed to carry a heavy payload and be produced in large numbers.
Founded in 2024, Covenant has more than 200 employees across the United States, Germany and Israel. The company said it has already secured approximately $150 million in orders covering research and development, qualification and production contracts.
Anthem Targets the Deep-Strike Gap
Anthem is designed to carry a payload of more than 200 kilograms (over 440 pounds) over long distances. Covenant has not disclosed its exact range, but says the missile offers multiples of the range and payload of other systems in its price class.
The company is targeting a unit cost in the mid-six figures at full-rate production. Anthem is intended for hardened targets, including ports, runways and weapons facilities.
Covenant has developed its own ground launcher, storage and handling systems, along with mission-planning and command-and-control software designed to support coordinated launches of large numbers of missiles.
More Than 200 Test Flights
Covenant said Anthem first flew in August 2025 and has completed more than 200 test flights. The testing has included trials with the U.S. military in the United States and overseas.
A recent demonstration was conducted in August 2026 at a U.S. Army range in Morocco.
$250 Million Funding and Military Contracts
Covenant raised more than $250 million across three funding rounds, with investors including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, Aleph and Lightspeed Venture Partners. Reports place the company's valuation at more than $1 billion.
The company has an Other Transaction Agreement with the U.S. Army for accelerated testing and qualification. The U.S. Navy's Rapid Capabilities Office also awarded Covenant a roughly $70 million cost-sharing contract to develop a maritime Anthem variant and incorporate Defense Exportability Features for potential sales to U.S. allies.
Covenant said additional awards are expected before the end of 2026.
Production Designed for Scale
Covenant is using commercial off-the-shelf components for Anthem where possible. Where commercial parts were unavailable, the company said it worked with suppliers to establish dedicated production lines.
The company has opened a 105,000-square-foot production facility in Grand Prairie, Texas, while a 110,000-square-foot facility in Saxony, Germany, is planned around a predominantly European supply chain. Covenant is also operating a roughly 30,000- to 32,000-square-foot facility in northern Israel.
Serial production is scheduled to begin in the first quarter of 2027, with an initial goal of about 1,000 missiles in the first year and a longer-term target of 5,000 units annually. Covenant expects deliveries of German-built systems to an international customer by the end of 2026, while U.S. Army deliveries are planned for 2027.
Leadership and Western Strike Requirements
Covenant was founded by Michael Kaufman and Ofir Dayan. Kaufman, the company's CEO, is a former investor at Thiel Capital, while Dayan, the CTO, previously worked on systems including Iron Dome. Abby Denburg is President and Chief Growth Officer, and former U.S. Deputy Secretary of Defense Kathleen Hicks serves as an adviser.
Covenant is positioning Anthem around the growing requirement for large numbers of heavy-payload precision weapons against hardened targets. Its approach combines a lower-cost production model, localized manufacturing and integrated launch and mission-planning systems.
The company says the priority now is execution—delivering mission-critical capability to customers on time, at scale and with the performance they expect.
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