Spotify founder to invest in European startups

Daniel Ek, the founder of Spotify, is set to invest €1bn of his own fortune into big tech European "moonshots."

Moonshots are technology startups in which the CEO will be spending roughly a third of his personal fortune to prop up, in a move he hopes will challenge the dominance of Silicon Valley.

At a fireside chat at startup conference, Slush, Ek, said: “We all know that one of the greatest challenges is access to capital. And that is why I’m sharing today that I will devote €1bn of my personal resources to enable the ecosystem of builders."

“And I will do so by funding so-called moonshots focusing on the deep technology necessary to make a significant positive dent, and work with scientists, entrepreneurs, investors and governments to do so."

Prior to this announcement, Ek had expressed interest in helping Europe compete with the US when it comes to backing innovative and brilliant companies.

He added: “Europe needs more super companies, both for the ecosystem to develop and thrive. But I think more importantly if we’re going to have any chance to tackle the infinitely complex problems that our societies are dealing with at the moment, we need different stakeholders, including companies, governments, academic institutions, non-profits and investors of all kinds to work together.

Ek managed to keep Spotify from being acquired before going public in 2018 and is now shocked that many startups have to sell their business in order to keep afloat.

He said: “I get really frustrated when I see European entrepreneurs, giving up on their amazing visions by selling very early in the process… We need more super companies to raise the bar and can act as an inspiration."

Ek has stated there aren't any particular types of projects he wants to invest in, other than a vague notion of companies working on ambitious exploratory and ground-breaking solutions with hardly any chance of near-term profitability or financial return.

Ek has mentioned machine learning, biotechnology, material science and energy as potential fields where this may apply.

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