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Defense Startup Covenant Debuts Dallas Missile Plant Following $250M Funding Round
Electronic Technology · Aerospace & Defense · cnbc · 2026-09-09
ITA, PPA, RTX, XAR, PLTR, PYPL
Covenant, a defense tech firm backed by Andreessen Horowitz and Peter Thiel, has launched a major missile production facility in Dallas to supply the U.S. military.
What Happened
Strategic Manufacturing Expansion: Defense startup Covenant has officially exited stealth mode, announcing the opening of a 105,000-square-foot production facility in Dallas. The site is designed to manufacture the company's Anthem long-range cruise missiles, with plans to scale production to 5,000 units annually.
Capital and Investor Backing: The company successfully secured $250 million in funding across three rounds, supported by prominent venture capital firms including Andreessen Horowitz and Founders Fund. This significant capital injection underscores the growing investor appetite for high-tech, cost-effective solutions within the U.S. defense industrial base.
Competitive Market Positioning: Covenant aims to challenge established defense primes by offering a more affordable alternative to legacy systems like the RTX Tomahawk. By focusing on high-payload, long-range capabilities, the firm seeks to address critical gaps in the current U.S. weapons stockpile and evolving battlefield requirements.
Government Contracts and Policy Influence: The startup has already secured two Department of Defense agreements to accelerate testing and maritime adaptation for its missile technology. These developments highlight the increasing role of venture-backed firms in shaping military procurement and defense policy under the current administration.