Covenant Launches Missile Factory in Dallas with $250 Million Backing

Covenant, a defense startup founded by Israeli-American entrepreneur Michael Kaufman, has officially launched a 105,000-square-foot missile factory in Dallas, Texas. This event marks the company's exit from stealth mode and is backed by over $250 million raised in three funding rounds, with significant contributions from Andreessen Horowitz and Peter Thiel’s Founders Fund.

The Anthem Missile

The flagship product, known as Anthem, is a long-range, heavy-payload cruise missile designed to be more cost-effective and faster to produce than traditional systems like the Tomahawk. The target price for the Anthem missile is in the mid-six-figure range per unit at full-rate production.

Production Goals and Contracts

Covenant has already conducted over 200 test flights of the Anthem since its maiden flight in August 2025. The Dallas facility aims to produce 1,000 Anthem missiles in its first year, with plans to scale production to 5,000 units annually. Serial production is expected to commence in Q1 2027, with initial revenue anticipated in the same year.

The company has secured approximately $150 million in contracts for qualification, research, development, and production, including agreements with the US Department of Defense for testing and qualification of the Anthem, particularly for Navy adaptations. Interest from both the Army and Navy highlights the Pentagon's search for alternatives within the defense industrial base.

Company Growth

Currently, Covenant employs over 200 individuals across its facilities in the US, Germany, and Northern Israel. CEO Michael Kaufman has a background in venture investment and previously worked at Thiel Capital.