Key Takeaways
- • Covenant, a Washington-based defense tech startup backed by Andreessen Horowitz, Founders Fund, Lux, 8VC, Aleph, Lightspeed and Altimeter Capital, opened a 105,000-square-foot missile factory in Dallas and exited stealth.
- • The company disclosed $250 million in funding raised over three rounds.
- • The Dallas plant is designed to produce 1,000 Anthem long-range cruise missiles in its first year, with serial production beginning in Q1 2027 and scaling to 5,000 units annually.
- • Covenant positions the Anthem, a heavy-payload cruise missile, as a lower-cost alternative to legacy systems dominated by defense primes such as RTX's Tomahawk.
- • Covenant announced two Department of Defense engagements: a test and qualification program with the Army and a Navy effort to adapt the Anthem for maritime use.
Summary
Covenant, a defense technology startup founded in 2024, on Wednesday announced the opening of a 105,000-square-foot factory in Dallas aimed at lower-cost missile manufacturing for the U.S. military, according to CNBC. The company is exiting stealth alongside the announcement and said it has raised $250 million over three funding rounds. Its investors include Andreessen Horowitz, Peter Thiel's Founders Fund, Lux, 8VC, Aleph, Lightspeed and Altimeter Capital.
The Dallas facility is expected to produce 1,000 of Covenant's Anthem long-range heavy-payload cruise missiles in its first year, beginning serial production in Q1 2027 and eventually scaling to 5,000 units annually. Covenant says the Anthem costs a fraction of legacy systems. It competes in a weapons class dominated by defense primes, including RTX's Tomahawk. The timing reflects strain on U.S. munitions inventories, which CNBC reports are dwindling rapidly as the war in Iran enters its seventh month, according to multiple reports cited by the network.
Abby Denburg, Covenant's president and chief growth officer, told CNBC's Morgan Brennan that new market entrants can play a critical role in the defense ecosystem. She said the company is filling a gap between short-range, low-payload drones and high-end weapons systems by offering affordable mass and strategic range without sacrificing payload. Covenant currently operates production facilities in Germany and Northern Israel and has more than 200 employees worldwide.
Covenant also announced two Department of Defense deals: one to accelerate a test and qualification program with the Army, and another with the Navy to adapt the Anthem for maritime use.
The announcement adds to the growing influence of defense technology investors in Washington. CNBC notes that Peter Thiel's influence has grown with the election of President Donald Trump, and that Marc Andreessen was named to the Pentagon's defense policy board this summer alongside Thiel Capital's Blake Masters. Andreessen also announced earlier this year a multibillion-dollar fund dedicated to U.S. aerospace and defense.
The Dallas facility is expected to produce 1,000 of Covenant's Anthem long-range heavy-payload cruise missiles in its first year, beginning serial production in Q1 2027 and eventually scaling to 5,000 units annually. Covenant says the Anthem costs a fraction of legacy systems. It competes in a weapons class dominated by defense primes, including RTX's Tomahawk. The timing reflects strain on U.S. munitions inventories, which CNBC reports are dwindling rapidly as the war in Iran enters its seventh month, according to multiple reports cited by the network.
Abby Denburg, Covenant's president and chief growth officer, told CNBC's Morgan Brennan that new market entrants can play a critical role in the defense ecosystem. She said the company is filling a gap between short-range, low-payload drones and high-end weapons systems by offering affordable mass and strategic range without sacrificing payload. Covenant currently operates production facilities in Germany and Northern Israel and has more than 200 employees worldwide.
Covenant also announced two Department of Defense deals: one to accelerate a test and qualification program with the Army, and another with the Navy to adapt the Anthem for maritime use.
The announcement adds to the growing influence of defense technology investors in Washington. CNBC notes that Peter Thiel's influence has grown with the election of President Donald Trump, and that Marc Andreessen was named to the Pentagon's defense policy board this summer alongside Thiel Capital's Blake Masters. Andreessen also announced earlier this year a multibillion-dollar fund dedicated to U.S. aerospace and defense.
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