Prime Highlights:
- Daniel Ek, Spotify’s co-founder, will invest €1 billion in European startups working on technology and environmental solutions.
- Ek is stepping down as Spotify CEO to focus on supporting innovative “moonshot” projects while staying involved with the company.
Key Facts:
- Spotify, under Ek’s leadership, introduced subscription streaming, personalized playlists, and a variety of content like podcasts and audiobooks.
- Ek has previously co-founded Neko Health and invested in Helsing, a German defense tech company, showing his interest in transformative startups.
Key Background:
Daniel Ek, the co-founder of Spotify, is shifting his focus from music streaming to supporting innovative technology ventures. The serial entrepreneur, who founded Spotify in 2006 and will step down as CEO next year, plans to invest €1 billion of his own wealth through his venture capital firm, Prima Materia, in early-stage European startups tackling deep tech, AI, climate, and health challenges.
Ek, now 42, rose to global recognition by turning Spotify into a $140 billion music powerhouse. When music sales were falling and piracy was common, Ek believed that making music easy and legal to access could change the industry. His vision of streaming over downloads reshaped the industry, attracting nearly three-quarters of a billion users worldwide.
“Big challenges often appear impossible until someone decides to tackle them,” Ek told Reuters. He called himself an optimist and problem-solver, highlighting the need to spend time on projects that make a real difference. Moving into the role of executive chair at Spotify will let him focus on these new ventures while still staying involved with the company he helped start.
Ek has already demonstrated a commitment to innovative health and technology projects. In 2018, he co-founded Neko Health, which focuses on preventive healthcare and early detection, raising a total of $325 million. He has also invested in Helsing, a German company developing AI-controlled defense drones, which has attracted over a billion dollars in funding and is valued at $12 billion. While Helsing has drawn criticism from some artists and observers, the company maintains that its technology is used solely for defense in Europe.
Spotify changed the way people listen to music, as under the leadership of Ek, subscriptions, customized playlists, and other content, such as podcasts and audiobooks, were introduced. Today, he is interested in supporting businesses engaged in addressing the key technological and environmental issues in Europe.
Investing in these so-called moonshot startups, Ek is beginning a new era, leveraging his experience to invest in the growth and innovation of the European tech market.
