Spotify CEO Daniel Ek Invests in Helsing, European Defense Tech Firm

Daniel Ek's Investment in European Defense Tech

Beyond his leadership at Spotify and ventures in AI-driven health technology, Daniel Ek is significantly investing in the future of European defense. This suggests a notable shift in his investment portfolio.

The Stockholm-based billionaire recently spearheaded a €600 million investment in Helsing, a Munich-based defense technology firm. This investment values Helsing at €12 billion, as initially reported by the Financial Times and subsequently confirmed by TechCrunch.

Europe's Growing Defense Sector

This deal positions Helsing as one of the most highly valued private companies in Europe. It also underscores the increasing urgency within Europe to bolster its military capabilities amidst a changing global landscape and a potential shift in U.S. foreign policy.

The scale of investment in this sector is expanding rapidly. Helsing secured $450 million in funding less than a year ago and has now attracted this larger round led by Ek’s Prima Materia. This is part of a wider trend, with substantial funds flowing into companies like Anduril, Quantum Systems, and Tekever.

Anduril, a U.S.-based defense giant, recently raised $2.5 billion with Founders Fund leading the round. European drone manufacturers, Quantum Systems and Tekever, have also achieved unicorn status with recent funding rounds of €160 million and €70 million, respectively.

Helsing has not disclosed specific plans for utilizing the newly acquired funding.

Helsing's Technological Approach

Helsing’s core innovation involves transforming modern warfare through the application of advanced technology. The company aims to create a battlefield experience resembling a sophisticated video game, albeit with real-world implications.

The company’s primary offering centers on processing vast quantities of data from military sensors, radars, and weapon systems. Artificial intelligence is then employed to generate clear, real-time visualizations of battlefield conditions.

This system aims to replace traditional, slower methods of communication – such as phone calls and hand-drawn maps – with a unified information stream accessible to all personnel, from frontline soldiers to command centers.

Expanding Capabilities

Initially focused on AI software, Helsing’s ambitions have broadened considerably. The company is now actively developing its own fleet of strike drones and aircraft.

Furthermore, Helsing is engaged in the creation of a fleet of unmanned mini submarines to enhance naval surveillance capabilities.

Geopolitical Context

This investment is occurring at a critical juncture. As investor Eric Slesinger noted to TechCrunch, European governments were slow to reassess their security arrangements.

Russia’s invasion of Ukraine served as a stark reminder of Europe’s reliance on American protection. The election of President Donald Trump, with his emphasis on American interests, has further highlighted the need for European self-reliance.

Strategic Autonomy and Increased Spending

European leaders are now prioritizing increased defense spending and the pursuit of strategic autonomy – the ability to independently manage their own security.

Greek Prime Minister Kyriakos Mitsotakis articulated this shift to TechCrunch, stating that Europe will significantly increase defense expenditure. He emphasized that the future of defense will be increasingly driven by digital technologies and artificial intelligence, moving beyond traditional platforms like tanks and planes.

Supporting the Ecosystem

The NATO Innovation Fund, the world’s first multi-sovereign venture capital fund backed by 24 NATO allies, was established a few years ago as a response to this evolving landscape.

This fund, alongside other initiatives, demonstrates Europe’s commitment to building a robust domestic defense technology ecosystem, reducing its dependence on the U.S.

Ek's Vision

Daniel Ek’s initial investment in Helsing dates back to 2021, prior to the outbreak of the war in Ukraine, suggesting a prescient understanding of emerging geopolitical trends.

In a press release regarding the latest funding round, Ek stated that as Europe strengthens its defense capabilities in response to geopolitical challenges, investment in advanced technologies is crucial for ensuring strategic autonomy.

Additional investors in Helsing’s latest round include Lightspeed Ventures, Accel, Plural, General Catalyst, Saab, BDT & MSD Partners, and existing investors. The company has now raised a total of €1.37 billion.