Spotify's Daniel Ek Leads $690 Million Bet On Defense AI Startup Helsing, Valued At $13.8 Billion As Europe Ramps Up Military Spending

Spotify Technology SA SPOT CEO Daniel Ek has positioned his investment firm at the forefront of Europe’s defense tech boom, leading a €600 million ($690 million) Series D funding round in AI-powered military startup Helsing.

What Happened: Prima Materia, Ek’s investment vehicle, spearheaded the round announced June 17, valuing the Munich-based defense unicorn at €12 billion ($13.8 billion). Major participants included Lightspeed Venture Partners, General Catalyst, Accel, and Swedish aerospace giant Saab, according to company statements, reported the Observer.

The funding surge reflects Europe’s accelerated military spending amid rising geopolitical tensions following Russia’s 2022 Ukraine invasion. Helsing, founded in 2021 by game developer, former German defense official Gundbert Scherf, and AI researcher Niklas Köhler, has rapidly expanded from software development to manufacturing drones, submarines and aircraft.

“As Europe rapidly strengthens its defense 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,” Ek stated, according to the report.

Why It Matters: Global defense tech venture capital hit $3 billion across 102 deals in 2024, marking an 11% year-over-year increase, according to Crunchbase data. Helsing’s round ranks among the sector’s largest alongside U.S. rival Anduril Industries‘ recent $2.5 billion raise at a $30.5 billion valuation.

Ek, estimated worth $10 billion, co-founded Prima Materia in 2020 with early Spotify investor Shakil Khan, pledging €1 billion toward European tech investments over the decade. Previous backing includes longevity startup Epiterna and health-tech venture Neko Health.

Helsing’s AI-powered military decision-making software has been deployed by Ukrainian forces since 2022, establishing credibility in active combat zones. The company raised €450 million in Series C funding last year, building on Prima Materia’s initial €100 million 2021 investment.

Read Next: