On June 17, 2025, Daniel Ek, co-founder and CEO of Spotify, led a €600 million investment in Helsing, a German defense technology startup, through his venture capital firm, Prima Materia. This investment, part of a broader €1.37 billion funding round, values Helsing at €12 billion, making it one of Europe’s most valuable private tech companies. Helsing specializes in AI-driven software and manufactures drones, aircraft, and submarines, including strike drones supplied to Ukraine. The investment reflects a growing trend in defense tech amid global conflicts and Europe’s push for technological sovereignty. This report details the investment, its implications, and public reactions, drawing on recent sources.
Background
Helsing, founded in 2021 in Berlin, initially focused on developing AI software to analyze battlefield sensor data, providing real-time insights for military decision-making. The company has since expanded into producing hardware, including the HX-2 series of strike drones, which are assembled in southern Germany and supplied to Ukraine. Helsing also holds contracts with the UK, Germany, and Sweden, and collaborates with NATO allies to enhance defense capabilities.
Daniel Ek, through Prima Materia, co-founded with early Spotify investor Shakil Khan, first invested €100 million in Helsing in 2021, before Russia’s invasion of Ukraine. Ek also serves as Helsing’s chairman. The 2025 investment significantly increases Prima Materia’s stake, aligning with Ek’s 2020 pledge to invest €1 billion in European deep-tech projects over a decade, focusing on AI, biotechnology, and security.
Investment Details
- Amount: €600 million ($693.6 million USD), part of a €1.37 billion funding round.
- Lead Investor: Prima Materia, with participation from Lightspeed Venture Partners, Accel, Plural, General Catalyst, Saab, and new investors BDT & MSD Partners.
- Valuation: Helsing is now valued at €12 billion, up from €5 billion in a 2024 round led by General Catalyst.
- Purpose: The funds will support Helsing’s expansion in AI-driven defense technologies and hardware production, emphasizing Europe’s “technological sovereignty.”
Ek stated, “As Europe rapidly strengthens its defence capabilities in response to evolving geopolitical challenges, there is an urgent need for investments in advanced technologies that ensure its strategic autonomy and security readiness.”
Strategic Context
The investment comes amid heightened global conflicts, including the Russia-Ukraine war and Middle East tensions, driving interest in defense tech. Europe is increasingly focused on building its own defense ecosystem, reducing reliance on U.S. support, especially following geopolitical shifts like the 2024 U.S. election. The NATO Innovation Fund, backed by 24 allies, underscores this trend, with defense tech investments reaching $52 billion in 2024, a 30% growth over two years.
Helsing’s AI software processes data from sensors (e.g., infrared, sonar, radar) to create real-time battlefield views, aiding military operations like reconnaissance and target identification. Its expansion into drone production, including 6,000 HX-2 drones for Ukraine, positions it as a key player in modern warfare.
Public and Industry Reactions
Ek’s investment has sparked mixed reactions:
- Support: Some praise the move as a strategic response to Europe’s security needs, with posts on X highlighting its importance for Ukraine’s defense. For example, one user noted, “Spotify founder Daniel Ek gets it. He invested €600M in German defense startup Helsing, which supplies strike drones to Ukraine.”
- Criticism: Ek’s earlier 2021 investment in Helsing triggered a #BoycottSpotify movement, with artists and users criticizing the use of Spotify-derived wealth for military tech. Artists like Darren Sangita and Sameer Gupta pulled their music from Spotify, citing ethical concerns over AI weaponry. Critics argued, “Music is NOT War!” and expressed frustration over Spotify’s low artist royalties juxtaposed with Ek’s defense investments.
Ek addressed potential backlash in 2025, stating, “I’m sure people will criticize this, and that’s okay. I’m more focused on what I think is right, and I’m 100 percent convinced it’s right for Europe.”
Implications
- Defense Tech Boom: Helsing’s valuation and funding reflect a broader trend of investor interest in defense tech, driven by global instability and Europe’s strategic autonomy goals.
- Spotify’s Brand Risk: Continued investments in defense tech may alienate some Spotify users and artists, potentially fueling further boycotts, though Ek emphasizes the separation between Spotify and Prima Materia.
- Geopolitical Impact: Helsing’s support for Ukraine and NATO allies strengthens Europe’s defense capabilities, aligning with Ek’s vision of addressing “infinitely complex problems” through technology.
Daniel Ek’s €600 million investment in Helsing underscores the growing intersection of technology and defense, positioning Helsing as a leader in AI-driven military solutions. While the move aligns with Europe’s push for security and technological independence, it risks reigniting controversies over Spotify’s ethical stance, particularly among artists and users. The investment’s long-term impact on Spotify’s brand and Europe’s defense landscape remains to be seen, but it marks a significant step in Ek’s ambition to shape deep-tech innovation.
