Covenant Emerges From Secrecy With $250 Million Funding for New Cruise Missile

Covenant, a stealthy startup developing a new type of cruise missile, has officially emerged from a period of intense secrecy, announcing it has raised $250 million. Founded in 2024 by Israeli-American Michael Kaufman, the company aims to produce a cruise missile, dubbed Anthem, that is significantly cheaper and faster to manufacture than existing systems like the U.S. Tomahawk.

The substantial funding round, which reportedly valued the company at over $1 billion in its latest stage, saw participation from major defense-tech investors including Andreessen Horowitz's American Dynamism fund, Peter Thiel's Founders Fund, 8VC, Lux Capital, Lightspeed, and Israel's Aleph.

Covenant has already secured $150 million in supply contracts with U.S. and European defense entities and a $70 million contract with the U.S. Navy for a maritime version of Anthem and export adaptation. The company anticipates further orders by year-end. Serial production is slated to begin in the first quarter of 2027, with a target output of 5,000 units annually.

The Anthem missile system is designed for rapid, large-scale production to address the rapid depletion of long-range precision missile stocks observed in recent conflicts. "Anthem is designed to enable hitting these targets even when fighting continues over time. To maintain deterrence, one must maintain a sufficiently large stock of munitions and be able to replenish it at the required pace," stated Kaufman.

The company, registered in the U.S. with headquarters in Washington D.C., operates R&D and manufacturing facilities in Israel's north, Dallas, Texas, and Saxony, Germany. It employs approximately 200 people across these locations, with ongoing recruitment in all three countries.