Modern military logistics have an expensive habit of burning through cash faster than ammunition. When a single legacy cruise missile costs millions of dollars, stockpiling enough inventory to survive an intense, multi-front conflict becomes nearly impossible for any nation. That economic bottleneck explains why military leadership everywhere is suddenly obsessed with low-cost precision strike capabilities.
Israel's Defense Ministry Director General, retired Maj. Gen. Amir Baram, recently toured Covenant, the defense startup behind the Anthem cruise missile. While the visit didn't immediately yield a signed procurement contract, it signals a massive shift in how traditional military establishments view venture-backed defense tech.
Founded in 2024 by Michael Kaufman and Ofir Dayan, Covenant operated in stealth until late 2025, when it pulled back the curtain on the Anthem system alongside massive funding rounds led by prominent venture firms like Andreessen Horowitz and Founders Fund. Headquartered in Washington with manufacturing plans spanning the US, Israel, and Germany, the company built the Anthem from the ground up to solve the cost and scaling crisis of modern missile inventories.
The Anthem is a ground-launched cruise missile utilizing a solid rocket booster for initial launch before switching over to a heavy-fuel jet engine for its cruise phase. Covenant engineered the weapon specifically to be manufactured by the thousands at a fraction of the cost associated with older legacy systems like the Tomahawk. Although exact pricing, payload details, and operational ranges remain tightly guarded, the system has already racked up over two hundred test flights since its maiden flight in August 2025, including joint testing alongside US military forces.
Baram's visit highlights a broader push by Israel for absolute munitions independence. Relying heavily on foreign supply chains or waiting years for traditional prime contractors to scale production lines leaves countries vulnerable during protracted conflicts. By courting agile startups alongside legacy primes, Israel wants to diversify its manufacturing base, speed up innovation cycles, and keep critical munitions flowing directly to front-line units.
Other nations are already moving fast on this trend. Denmark recently committed to purchasing ground-launched Anthem missiles slated for production at a new facility in Leipzig, Germany, while the German Defense Ministry is actively evaluating low-cost cruise options. Meanwhile, the U.S. Navy's Rapid Capabilities Office has backed a maritime variant of the Anthem via a cost-sharing agreement, proving that major military powers see urgent value in shifting away from hyper-expensive, low-quantity arsenals.
Building thousands of affordable, highly capable cruise missiles changes the calculus of modern deterrence. If startups like Covenant can deliver reliable strike power at scale, defense procurement will never look the same again.
