Spotify Co-Founder Leads 6.94 Billion USD Investment in European Defense Tech

Spotify's co-founder and CEO, Daniel Ek, has led a significant investment round in Helsing, a European defense technology startup. The company has raised 6 billion euros, approximately 6.94 billion US dollars, in its latest funding round. This investment is led by Prima Materia, a venture capital firm co-founded by Ek and early Spotify investor Shakil Khan. Ek also serves as the chairman of Helsing.

Helsing, established in 2021, specializes in developing software that uses artificial intelligence to analyze vast amounts of data from battlefield sensors and weapon systems, providing real-time information for military decision-making. The company has also begun producing its own series of military drones, known as the HX-2. Helsing operates in the United Kingdom, Germany, and France, and plans to use the new funds to invest in Europe's "technological sovereignty," focusing on the local development and production of key technologies such as artificial intelligence.

The investment comes at a time when defense and related technologies have become a hotspot for investors due to ongoing major global conflicts, including the Russia-Ukraine war and the Israel-Gaza conflict. The recent escalation in the Middle East, following a series of Israeli airstrikes on Iran, has further heightened tensions in the region. This increased focus on defense technologies is part of a broader trend, with the North Atlantic Treaty Organization (NATO) Innovation Fund reporting that risk investment in Europe's defense, security, and resilience sectors reached a record high of 52 billion US dollars in 2024. This sector has seen a 30% growth over the past two years, outperforming the overall venture capital market, which has declined by 45% during the same period.

Helsing's software leverages artificial intelligence to analyze data from battlefield sensors and weapon systems, providing real-time insights for military decision-making. The company's expansion into drone production with the HX-2 series further underscores its commitment to advancing defense technologies. Helsing's operations span the United Kingdom, Germany, and France, and the company aims to use the new funding to bolster Europe's technological sovereignty by promoting the local development and production of critical technologies.

In a statement released on Tuesday, Ek emphasized the urgency of investing in advanced technologies to ensure strategic autonomy and security preparedness in the face of evolving geopolitical challenges. Helsing has not disclosed its latest valuation following this funding round, which is still subject to "specific approvals." However, in a previous funding round led by General Catalyst, the company was valued at approximately 50 billion euros.