A U.S.-based defense startup backed by tech billionaire Peter Thiel’s Founders Fund is establishing three missile production facilities in the United States, Germany, and Israel to manufacture long-range precision munitions aimed at countering strategic threats from China, Russia, and Iran. The company, Covenant, announced its emergence from nearly two years of secretive development as it prepares to challenge established defense contractors with its Anthem “deep strike” missile system.
Covenant co-founder and CEO Michael Kaufman said the company is focused on producing affordable, high-volume precision-guided weapons using readily available components. The startup aims to supply the U.S., European allies, and Israel with a cost-effective alternative to existing long-range weapons such as the Raytheon-made Tomahawk cruise missile, which is limited both by price and production capacity. Tomahawk missiles, which carry a range of approximately 1,600 kilometers, are currently priced in the $4 million to $6 million range and have been depleted in part due to the ongoing war in Iran.
The Anthem missile program, first unveiled publicly in September 2026, plans to produce roughly 1,000 missiles annually at its U.S. and German facilities by 2027, scaling up to 5,000 per site per year by 2028. The Israeli factory is also scheduled to begin production early next year. According to the company, each missile is expected to cost in the mid six-figure euro range, significantly lower than comparable systems.
While Covenant does not publicly disclose Anthem’s exact range citing customer confidentiality, executives indicated the weapon is designed to meet or surpass European initiatives to develop “deep precision strike” capabilities exceeding 2,000 kilometers. Anthem is intended to address strategic vulnerabilities posed by Russia, China, and Iran by providing the ability to launch large salvo attacks against critical military infrastructure. The missile carries a warhead weighing up to 250 kilograms, about half the payload of a Tomahawk, compensating with affordability and mass production to “saturate” targets.
The startup was founded in 2024 by Kaufman, a U.S.-Israeli dual national and former employee of Thiel’s hedge fund and investment firm, along with Ofir Dayan, an ex-systems chief engineer from Israel’s Iron Dome air defense program. Their goal, they said, was to create a “war-winning” strategic weapon inspired in part by the rapid innovation seen in tactical drone warfare used in Ukraine.
Covenant has secured approximately €130 million in orders so far, including contracts with the U.S. Army to test Anthem and with the Navy for a maritime variant. Germany, currently leading a European drive to boost defense capabilities in response to Russia’s invasion of Ukraine, is reportedly considering Anthem for future procurement.
Despite its U.S. origins and backing, Covenant maintains that its German operation will function independently and source nearly all components from European suppliers, with only a minimal percentage coming from outside Europe and none from the U.S. This pledge comes amid European efforts to reduce dependence on American defense technologies amid strained transatlantic relations.
The company declines to categorize Anthem strictly as a cruise missile or long-range drone, reflecting the evolving nomenclature in modern missile technology. Covenant’s president and chief growth officer, Abby Denburg, described the system as a “deep precision-strike munition” designed to fulfill a range of strategic roles.
Investors in Covenant include Founders Fund, Andreessen Horowitz, 8VC, and Israeli VC firm Aleph, which has ties to senior Israeli political figures, including an adviser to Prime Minister Benjamin Netanyahu. Kaufman noted that none of the investors influence daily operations or decision-making.
As Covenant prepares to enter the competitive missile market traditionally dominated by established defense contractors such as Raytheon and Lockheed Martin, it joins a growing cohort of startups, including Anuril and Ukraine’s Fire Point, seeking to innovate in long-range precision weapons amidst shifting global security dynamics.