Secretive defense startup Covenant emerges from stealth with $250 million at over $1

Key Points:

• Covenant, a cruise missile startup founded in 2024 by Israeli-American entrepreneur Michael Kaufman, has raised over $250 million from prominent investors including Andreessen Horowitz, Founders Fund, Lux Capital, and Aleph, with a valuation exceeding $1 billion.
• The company unveiled its Anthem system, a long-range, heavy-payload cruise missile designed for rapid, large-scale production at significantly lower costs than legacy systems, aiming for production volumes of up to 5,000 units per year starting in early 2027.
• Anthem has undergone more than 200 test flights since its maiden flight in August 2025, including tests with the U.S. Army and international observers, and Covenant has secured approximately $150 million in orders along with contracts with the U.S. Army and Navy for accelerated testing and naval adaptation.
• Production facilities are located in Dallas, Texas; Saxony, Germany; and Northern Israel, leveraging a multinational supply chain to ensure continuous manufacturing capability during wartime and facilitate exports to U.S. allies.
• Covenant’s development of Anthem addresses concerns about the rapid depletion of long-range precision missiles in modern conflicts, aiming to maintain deterrence through mass production and an integrated system that reduces operational costs and infrastructure requirements.