Daniel Ek, the visionary behind Spotify’s meteoric rise, is setting his sights on a new frontier. As he prepares to step down as CEO of the music streaming giant, Ek is shifting his focus toward European startups tackling some of the world’s most pressing challenges through deep technology, AI, and climate and health tech. His ambition? To replicate the success of Spotify in industries where innovation is desperately needed.
Ek’s journey from a 23-year-old coder to a billionaire entrepreneur began with a bold idea: making music as accessible as turning on a tap. At a time when the industry was grappling with piracy and declining sales, Ek bet on streaming—a concept that seemed impossible at the time. Nearly two decades later, Spotify has grown into a $140 billion powerhouse, reshaping the music landscape and proving that even the most daunting challenges can be overcome with the right vision.
Now, Ek is applying that same mindset to a new set of challenges. Through his venture capital firm, Prima Materia, he has pledged to invest 1 billion euros ($1.18 billion) of his own wealth into European “moonshot” projects. These investments will target early-stage startups in deep technology, AI, climate tech, and health tech—areas where breakthroughs could have a profound impact on society.
“We’re at a crossroads for the kind of future we want to build,” Ek said in an email to Reuters. “Big challenges often appear impossible until someone decides to tackle them. At Spotify, we started with what felt like an impossible idea. Nearly 20 years later, that idea is used by almost three-quarters of a billion people around the world. What once looked unreasonable is now obvious.”
Ek’s transition to executive chair at Spotify will allow him to dedicate more time to these ventures. He has already made significant investments in companies like Neko Health, which focuses on preventive healthcare and early disease detection, and Helsing, a German startup developing AI-controlled combat drones. Helsing, valued at $12 billion, has become Europe’s largest defence startup, attracting over a billion dollars in funding. However, Ek’s investment in Helsing has sparked controversy, with some artists removing their music from Spotify in protest. Critics argue that music and weapons are incompatible, while supporters credit Ek with revolutionising the music industry.
“Music and weapons are not a good mix,” said Simon Dyson, an analyst at Omdia. With high-profile artists pulling their music from the service, “the sounds of protest are starting to become a distraction.”
Despite the backlash, Ek remains undeterred. He has weathered criticism before, from artist pay disputes to controversies around Spotify’s podcast investments. His supporters highlight his role in creating a legal model that redirected listeners away from piracy, while critics point to the inequities faced by independent artists under Spotify’s dominance.
Ek’s legacy at Spotify is undeniable. He transformed the music industry by introducing price-disciplined subscriptions, algorithmic playlists, and a vast content range that includes podcasts and audiobooks. These innovations have made Spotify a cultural cornerstone, with millions treating it as an essential utility.
As Ek looks to the future, he remains optimistic about the potential for technology to solve some of the world’s most pressing problems. “My Spotify co-founder likes to say that the value of a company is the sum of all problems solved, and history shows that progress often comes from those willing to go against conventional wisdom,” he told Reuters.
With his sights set on the next big challenge, Ek is poised to continue reshaping industries and proving that even the most audacious ideas can become reality.