Germany’s defense ministry is evaluating Covenant, a secretive Israeli-American defense startup founded in 2024, as part of an urgent search for affordable long-range strike weapons. Berlin, concerned about over-reliance on U.S. systems like Tomahawk cruise missiles, sent Covenant a request for proposals. The company’s missile system, Anthem, was scheduled for testing in Israel in June, with German officials invited to observe. Backed by Peter Thiel’s Founders Fund and Andreessen Horowitz, Covenant was founded by former Thiel Capital investor Michael Kaufman and has raised hundreds of millions of dollars.
In-Depth:
For most of its existence, Covenant has operated largely out of public view.
Founded only in 2024, the Israeli-American defense startup has raised hundreds of millions of dollars, according to people familiar with the company, while attracting backing from some of Silicon Valley’s most influential investors. Yet little has been publicly known about its products, ambitions or operations.
Now the company has unexpectedly emerged at the center of one of Europe’s most pressing defense debates.
The development offers a rare glimpse into a company that appears to have shiftd rapidly from startup status into discussions surrounding the future of European deterrence.
Politico reported that Germany’s procurement authorities sent a request for product proposals to Covenant as Berlin explores alternatives to U.S.-created long-range strike systems. The shift comes after uncertainty surrounding Washington’s plans for long-range missile deployments in Europe and amid concerns over U.S. missile inventories following the conflict with Iran.
At the center of Covenant’s pitch is a missile system known as Anthem.
According to documents reviewed by Politico and people familiar with the matter cited in the report, Anthem was scheduled for testing in Israel in June, with German defense officials invited to observe the trial.
Covenant did not respond to Politico’s requests for comment.
Politico reported that company materials describe Covenant as a U.S.-Israeli-linked firm with plans to establish a sovereign European supply chain and production capabilities in Germany and the United Kingdom. Such ambitions align closely with Europe’s growing desire to reduce depconcludeence on foreign defense suppliers and build domestic manufacturing capacity.
The startup’s investor roster also reflects the growing convergence of Silicon Valley capital and defense technology.
According to Politico, Covenant counts among its backers Founders Fund, the venture capital firm associated with Peter Thiel, as well as Andreessen Horowitz, one of the most prominent technology investors in the United States.
The connection is notable becaapply Covenant’s founder, Michael Kaufman, is a former investor at Thiel Capital.
Germany’s interest in Covenant comes as Berlin pursues what Politico described as a four-track strategy for acquiring long-range strike capabilities. Alongside efforts to obtain U.S. systems and develop future European weapons, German officials are searching for lower-cost missiles that could be fielded more quickly and acquired in larger numbers.
Politico reported that German officials are examining systems from both Israeli and Ukrainian companies as part of an effort to build a diversified arsenal capable of striking tarobtains deep behind enemy lines. German defense officials notified the publication that such capabilities have become essential for credible deterrence following lessons drawn from the war in Ukraine.
