Germany eyes long-range missiles from Israeli-American startup Covenant Technologies as US Tomahawk stocks dwindle
Berlin's push for cruise missile independence could reshape European defense spending and the venture-backed weapons industry
Germany is in active talks to buy long-range cruise missiles from Covenant Technologies, a two-year-old Israeli-American defense startup, as the US burns through its Tomahawk stockpile in the Iran conflict.
The German defense ministry has formally sought proposals from Covenant for its Anthem missile system, which is set for live-fire testing in Israel during the third week of June 2026. German officials have been invited to watch the demonstration firsthand.
Why Germany is shopping for missiles outside the US
The US deployed roughly 850 Tomahawk missiles during the early weeks of the Iran conflict. That wiped out about 25% of America’s total Tomahawk inventory in one go.
Replenishing that stockpile is now Washington’s priority, not arming European allies. Plans for American Tomahawk deployments in Europe have been put on pause, leaving Berlin in a strategic lurch.
Berlin is pursuing what officials describe as a four-track plan to establish a low-cost cruise missile capability by 2027. Covenant isn’t the only option on the table. Germany has also expressed interest in the Flamingo missile from Ukrainian firm Fire Point.
Who is Covenant Technologies
Covenant Technologies was founded in 2024 and currently employs approximately 50 people. The startup is backed by Founders Fund and Andreessen Horowitz. Covenant raised seed funding in November 2024 and completed a second funding round in April 2026. The exact amounts raised have not been publicly disclosed.
Covenant plans to build production lines in both Germany and the UK, effectively creating a sovereign European supply chain for cruise missiles.
The venture capital defense boom
Founders Fund, Peter Thiel’s firm, has a long history with defense-adjacent investments through its early backing of Palantir. Andreessen Horowitz has been increasingly vocal about its interest in defense technology.
A contract with Germany’s defense ministry would demonstrate that a startup founded just two years prior can compete for sovereign weapons procurement against established players like Raytheon, the Tomahawk’s manufacturer.
What this means for investors
Andreessen Horowitz runs one of the largest crypto-focused venture funds in existence. Founders Fund was an early Bitcoin investor.
Germany’s 2027 target for an initial capability means procurement decisions will likely accelerate through the remainder of 2026. Covenant’s Anthem is scheduled for live-fire testing in the third week of June 2026, with German officials invited to observe.