Covenant, a defense technology startup, has unveiled a substantial 105,000-square-foot manufacturing facility in Dallas, Texas. This strategic expansion aims to significantly ramp up the production of more affordable missiles for the U.S. military, addressing critical needs in a rapidly evolving geopolitical landscape.
The company, emerging from stealth mode, has secured substantial backing from prominent venture capital firms, including Andreessen Horowitz, Peter Thiel’s Founders Fund, Lux Capital, 8VC, Aleph, and Lightspeed. This robust financial support, totaling $250 million across three funding rounds, underscores the immense confidence investors have in Covenant’s vision and technological capabilities.
“There’s a growing recognition that new entrants can play a pivotal role in the defense ecosystem, and this administration is certainly acknowledging that,” stated Abby Denburg, Covenant’s President and Chief Growth Officer, in an interview. This sentiment reflects a broader shift in defense procurement, which is increasingly open to innovative solutions from non-traditional suppliers.
Founded in 2024, Covenant’s flagship product, the Anthem long-range, heavy-payload cruise missile, presents a compelling alternative to existing systems. In a market largely dominated by established defense giants like RTX with its Tomahawk missile, Covenant asserts that the Anthem offers comparable capabilities at a fraction of the cost of legacy platforms. This cost-effectiveness is a critical differentiator, especially as defense budgets face increasing scrutiny and demand for high-volume production grows.
The new Dallas facility is slated to produce 1,000 Anthem missiles in its initial year, with serial production commencing in the first quarter of 2027. The company plans to scale this output to an impressive 5,000 missiles annually. This production capacity is particularly timely, given reports suggesting that U.S. long-range precision missile stockpiles have been significantly depleted amid ongoing global conflicts.
Denburg highlighted the evolving nature of warfare, noting the proliferation of high-tech, but often short-range and low-payload, drones that have become prominent in recent conflicts, such as the war in Ukraine. “We’ve observed a significant gap in the market for affordable, mass-producible systems that also possess strategic range,” she explained. “The Anthem missile is designed to fill precisely that void, offering enhanced strategic reach without compromising on payload capacity or affordability.”
In parallel with its manufacturing expansion, Covenant announced two significant Department of Defense contracts. The first, with the U.S. Army, aims to accelerate a critical test and qualification program. The second, with the U.S. Navy, focuses on adapting the Anthem missile for maritime operations, expanding its potential applications and operational flexibility.
Covenant currently maintains production facilities in Germany and Northern Israel, employing a global workforce of over 200 individuals. The company’s strategic positioning and its ability to secure substantial investment and government contracts illustrate the growing influence of defense technology startups in shaping national security policy and procurement strategies.
The influence of figures like Peter Thiel, a key investor in Covenant, within Washington’s defense and policy circles continues to be a significant factor. Thiel’s past support for political candidates and his involvement with venture capital firms focused on strategic technologies underscore a trend of private capital playing an increasingly vital role in bolstering national defense capabilities. Similarly, Marc Andreessen, another prominent venture capitalist and investor in Covenant, has recently been appointed to the Pentagon’s Defense Policy Board, signaling a heightened engagement from the tech industry in national security matters. Andreessen Horowitz’s recent commitment to a multibillion-dollar fund dedicated to U.S. aerospace and defense further solidifies this trend.
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