Covenant is coming out of stealth with Anthem, a long-range, heavy-payload cruise missile pitched as a new option in a category usually dominated by the big primes like RTX's Tomahawk. The company says Anthem costs a fraction of older systems. To make a dent in supply, Covenant announced a 105,000-square-foot Dallas facility that is planned to start serial production in the first quarter of 2027, produce 1,000 missiles in its first year, and grow to 5,000 per year. The timing lines up with a period when, according to multiple reports, U.S. stockpiles are thinning as the war in Iran moves into its seventh month.
The company disclosed $250 million raised over three rounds, backed by Andreessen Horowitz, Peter Thiel's Founders Fund, Lux, 8VC, Aleph and Lightspeed. CNBC's Morgan Brennan was told by Abby Denburg, who serves as Covenant's president and chief growth officer: "What we're seeing now is an understanding that new market entrants can play a critical role in the defense ecosystem, and we're seeing that in this administration." Denburg also pointed to the surge of "short-range, low payload" drones in the Russia-Ukraine war and said, "There is a gap in the middle of that for affordable mass and strategic range, and that's the gap that Anthem was filling," emphasizing the aim to cut costs without giving up payload. Covenant operates production sites in Germany and Northern Israel and employs more than 200 people worldwide.
On Wednesday, the company detailed two Pentagon initiatives: accelerating the Army's test-and-qualification process and working with the Navy to tailor Anthem for "Maritime" missions. The Washington-based startup sits inside a broader shift where defense tech is gaining pull in policy and procurement. Peter Thiel's standing in Washington rose with the election of President Donald Trump; he backed Trump's 2016 run and supported JD Vance's 2022 Senate bid.
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Vance previously worked at Mithril Capital, which Thiel co-founded. Marc Andreessen - whose prominence has risen during Trump's second term - joined the Pentagon's Defense Policy Board this summer, serving alongside Blake Masters of Thiel Capital. Also this year, Andreessen unveiled a multibillion-dollar fund dedicated solely to U.S. aerospace and defense.
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