Tech Titans Move Into Defense

In a striking sign of the times, Daniel Ek—the founder and CEO of Spotify—is making headlines not for music, but for military technology. Ek’s venture capital firm, Prima Materia, has led a massive 600-million-euro ($694 million) investment round in Helsing, one of Europe’s most prominent defense technology startups. This move not only highlights the rapid rise of AI-powered defense companies but also signals a new phase in Europe’s quest for technological sovereignty and strategic autonomy.

The Investment: Prima Materia Bets Big on Helsing

The latest funding round, announced on June 17, 2025, brings together some of the world’s top venture capital firms. Led by Prima Materia, with continued participation from Lightspeed Venture Partners, Accel, Plural, General Catalyst, and Saab, the deal also welcomed new backers like BDT & MSD Partners. While Helsing did not disclose its latest valuation, the firm was previously valued at around €5 billion after a €450 million round in 2024.

Daniel Ek’s growing influence in the defense technology sphere is noteworthy. Not only is he the lead investor through Prima Materia, but he also serves as Helsing’s chairman—a clear signal that this is a strategic, long-term commitment, not just a financial play.

Why Defense Tech, Why Now?

The surge of investment into defense tech is no coincidence. The past two years have seen a dramatic uptick in military and geopolitical tensions, from the ongoing war in Ukraine to escalations in the Middle East, including the Israel-Iran conflict. As a result, governments and investors are prioritizing security, resilience, and the rapid adoption of advanced technologies.

A recent NATO Innovation Fund report showed that venture funding for Europe’s defense, security, and resilience sectors hit an all-time high of $5.2 billion in 2024, with the sector growing 30% in the last two years—contrasting sharply with a 45% decline in the broader VC market.

Helsing’s AI Advantage: Bringing Real-Time Insights to the Battlefield

Founded in 2021, Helsing is at the cutting edge of AI-driven defense. The company develops software that leverages artificial intelligence to process and analyze massive streams of data from sensors and weapons systems on the battlefield. This real-time analysis helps military decision-makers respond more rapidly and effectively to fast-evolving threats.

Beyond software, Helsing began manufacturing its own line of military drones (HX-2) in 2024, marking its expansion into autonomous systems—an area of growing interest for both European and global defense forces.

Operating in the UK, Germany, and France, Helsing’s technology is seen as crucial to Europe’s goal of achieving “technological sovereignty”—developing and producing critical capabilities like AI at home rather than relying on foreign suppliers.

Europe’s Strategic Imperative: Building Technological Sovereignty

Daniel Ek’s statement accompanying the funding round was direct: “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.”

Europe’s ambition is clear. With increasing instability on its borders and growing reliance on foreign (especially U.S. and Chinese) technology providers, policymakers and private sector leaders alike are seeking to onshore the development of AI, cybersecurity, and autonomous systems. The Helsing investment is emblematic of this new European mindset—one that values innovation, resilience, and independence in defense as never before.

Investor Appetite: Defense as a Growth Sector

The rapid rise of Helsing and its peers is part of a broader investor pivot toward defense and dual-use technologies. As governments increase their defense budgets and modernize military infrastructure, private capital is flowing into startups capable of delivering game-changing innovations.

Importantly, Helsing’s funding round is one of the largest ever for a European defense technology firm, reflecting both investor confidence and the scale of opportunity. Existing investors like General Catalyst and Saab—along with venture heavyweights like Accel and Lightspeed—bring deep expertise in scaling high-tech companies, while Daniel Ek’s personal involvement adds credibility and visibility.

Implications for the Defense Tech Ecosystem

Helsing’s rapid ascent sends several signals to the market:

AI and autonomy are the future of defense: Military planners and investors see AI-driven data analysis, autonomous drones, and sensor fusion as essential tools in modern conflict.

Defense tech is no longer taboo: Once seen as a niche or controversial investment area, defense startups are now attracting mainstream venture capital.

Europe wants to compete globally: By backing firms like Helsing, European investors and governments are seeking to position the continent as a hub for next-generation defense technology—rivaling Silicon Valley and the U.S. defense sector.

Challenges and Ethical Questions Ahead

As defense technology advances, questions about ethical AI, export controls, and dual-use applications will intensify