Covenant, a defense technology startup backed by prominent venture firms including Andreessen Horowitz, Founders Fund, and 8VC, announced the opening of a 105,000-square-foot missile production facility in Dallas. The company plans to begin serial manufacturing of its Anthem long-range heavy-payload cruise missiles in the first quarter of 2027, targeting an initial output of 1,000 units in its first year and scaling up to 5,000 annually.
Founded in 2024, Covenant aims to provide lower-cost alternatives to existing long-range cruise missiles used by the U.S. military, a sector traditionally dominated by established defense contractors such as Raytheon Technologies with its Tomahawk missile. According to the company, Anthem’s production costs are significantly lower than those of legacy systems, addressing a strategic need for affordable, scalable missile options amid ongoing global security challenges.
Abby Denburg, Covenant’s president and chief growth officer, emphasized that the company seeks to fill a capability gap between short-range drone technologies—highlighted in conflicts like the Russia-Ukraine war—and much larger, expensive missile systems. “There is a gap in the middle of that for affordable mass and strategic range, and that’s the gap that Anthem was filling,” Denburg said. She added that the company intends to maintain robust payload capacities while reducing costs.
The expansion into Dallas coincides with two newly announced Department of Defense contracts to advance testing and qualification work with the Army and to adapt Anthem missiles for maritime deployments with the Navy. Covenant currently operates production facilities in Germany and Northern Israel and employs more than 200 people globally.
The move comes at a time when U.S. military stockpiles, particularly of long-range missiles, are under strain due to ongoing conflicts such as the war in Iran, which has entered its seventh month. Covenant’s emergence from stealth mode, alongside significant funding totaling $250 million raised over three rounds, highlights increasing interest in new defense technology entrants as key players in the U.S. defense ecosystem.
Covenant’s investor backing includes major Silicon Valley venture capital firms with deep ties to political and defense circles. Founders Fund, co-founded by Peter Thiel, an influential figure in Washington who has supported political campaigns aligned with former President Donald Trump, is among its primary financiers. Marc Andreessen, another prominent investor in the space and a recent Pentagon defense policy board appointee, has also made substantial commitments to U.S. aerospace and defense innovation through multibillion-dollar investment funds.
As defense spending priorities evolve, Covenant’s development reflects a broader trend toward leveraging venture capital and commercial technology approaches to meet modern military requirements. The company’s efforts illustrate the growing intersection between government defense agencies and Silicon Valley-backed startups aiming to reshape weapon system procurement and production.