Defense-Tech Startup Covenant Unveils $250M Funding and Long-Range Missile System
Defense-tech startup Covenant has emerged from stealth with $250 million in funding, unveiling Anthem, a low-cost, long-range weapon system designed as an alternative to the Tomahawk missile.
After operating quietly for a long period, defense-tech startup Covenant officially emerged from stealth, unveiling its secret product developed over recent years alongside $250 million in total funding.
A Cost-Effective Alternative to the Tomahawk
The company’s flagship product is Anthem, a long-range weapon system capable of carrying heavy payloads. Covenant’s vision is to manufacture the system in thousands of units at a significantly lower cost than existing market alternatives, addressing the rapid depletion of precision missile stockpiles among Western militaries. According to various reports, each missile is expected to cost several hundred thousand dollars—substantially cheaper than a Tomahawk missile, which costs roughly $2 million per unit.
One of the system's key innovations is its reliance primarily on commercial off-the-shelf components, enabling continuous production even during emergencies. Reports have recently indicated that the German Ministry of Defense is evaluating the system as a potential replacement for aging Tomahawk missiles, which, beyond their high cost, are also subject to stringent U.S. government oversight and export controls.
Global Footprint and Rapid Production Plans
The startup is led by founder and CEO Michael Kaufman, an American-Israeli who immigrated to Israel several years ago and previously worked at Peter Thiel’s venture fund. Alongside him is Abigail Danberg as president, who brings experience from Boeing. Covenant is headquartered in Washington with a 3,000-square-meter research, development, and manufacturing center in Tel Aviv, alongside production facilities in Dallas and Germany. Anthem has completed over 200 test flights, and the company has amassed $150 million in contracts, including the development of a maritime variant for the U.S. Navy. According to the company, serial production is slated to begin in 2027 at a rate of approximately 5,000 missiles per year.
Kaufman explained:
«There are currently thousands of operational targets located beyond the reach of existing weapons systems. Anthem is designed to enable strikes against these targets even as conflict persists over extended periods. To maintain deterrence, one must hold a sufficiently large inventory of munitions and be capable of replenishing it at the required pace.»
Backed by Top-Tier Venture Funds
Covenant launched with over $250 million raised across three funding rounds. The rounds were led by prominent venture funds including Andreessen Horowitz and Peter Thiel’s Founders Fund, alongside 8VC, Lux Capital, Lightspeed, and Aleph. The investments, reflecting a valuation of over $1 billion, underscore the ongoing momentum in the defense-tech sector, which is increasingly attracting investors who previously avoided the industry in favor of pure software companies. Shifting geopolitical conditions worldwide—including conflicts in the Middle East, the Persian Gulf, Ukraine, and rising tensions between Taiwan and China—combined with the waning attractiveness of traditional software firms following the AI revolution, have transformed defense tech into one of the venture capital market's hottest arenas.
David Ulevitch, general partner at Andreessen Horowitz, stated:
«We launched our American Dynamism investment program to support companies operating in sectors vital to U.S. security and national interest. Rebuilding the West's long-range strike arsenal is one of today's core missions. Covenant possesses the technological depth and the capacity to move rapidly.»
Kathleen Hicks, former U.S. Deputy Secretary of Defense and currently an advisor to the company, added:
«Under the Replicator initiative, we focused on accelerating the Pentagon's ability to procure large quantities of small, low-cost autonomous systems. That same approach is needed for long-range systems carrying heavy payloads. Anthem is built so that it can be manufactured and delivered at the pace operational demands require.»
