Silicon Valley is home to big tech companies, while Europe has Spotify. The comparison may not hold water, but it serves to summarise the differences between the two environments. It is well known that this corner of California offers the ideal conditions for innovation, especially from a financial point of view and in terms of risk-taking and, therefore, investing in start-ups. In Europe, the situation is different. Funds are scarcer, and the tendency is to save money because you never know what tomorrow may bring. 

This dichotomy remains a mindset (with substantial differences because it is more deeply rooted in Southern Europe), even in the face of the evident growth of a start-up and venture capitalist ecosystem that has facilitated the emergence of emerging companies capable of establishing themselves internationally. 

Top of the class numbers

However, Spotify is something different, not least because it was an idea conceived in 2006 when smartphones and mobile apps did not yet exist. This is why the Swedish company created by Daniel Ek and Martin Lorentzon is both an anomaly and a benchmark for European start-ups.

The exceptional nature of Spotify’s achievement can be summed up in a few figures: 678 million users, including 268 million subscribers. Its core business is going strong on our continent, with more than 100 million paying users in Europe. It should be noted that these figures need to be analysed in perspective, as it took 18 years to reach such a milestone. 

In recent years, the context has changed profoundly, with digital becoming dominant and new players (such as Apple and Google with their respective digital stores) necessary to start a business. The question to ask, therefore, is whether Spotify’s example can be replicated in Europe.

Great talent in Europe but a difficult environment

“I am excited about building a company in Europe because there is an abundance of talent, and the conditions are also different from when we started. At the time, there were two or three venture capital funds in Sweden. Now, there are more than a hundred, and the situation is similar across the continent. However, it is more difficult today than it was then because almost everything goes through smartphones and closed systems created by gatekeepers such as Apple, which wants 30% of everyone’s revenue without providing a proportional service. We, on the other hand, are fighting for an open Internet where all apps can compete fairly. Overall, therefore, there is an excellent foundation in Europe, and many entrepreneurs are eager to create something solid and act with a mission in mind, such as FinTech and ClimaTech. Still, the fear is that they may hit a wall.”

These are the words of Daniel Ek, co-founder of Spotify, speaking to the press during Open House 2025, an event organised by the Stockholm-based company.

The evolution of Spotify

These are words that give pause for thought because while it is right that new entrepreneurs should have optimistic visions and focus on the long term, there is no doubt that there are major obstacles that they will inevitably come up against. 

“Martin and I have always been driven by the desire to make all the music in the world accessible, legally, while ensuring fair compensation for artists. That’s where the business started, and it took 18 years to establish itself.” Ek explains. 

After all, Spotify’s musical soul encompasses many nuances, a sign of the times and an evolution driven by digital technology. “We’ve gone from songs to audiobooks to podcasts and videos, following a path shaped by the needs of artists and the demands of users. It’s a choice that has ensured value for everyone.” 

Precisely because Spotify has become a powerhouse capable of competing with the giants of Silicon Valley in terms of size, quality and innovation, the future looks bright, and ambitions are sky-high. 

“I have no doubt that we can exceed one billion paying users. I don’t know when that will happen, but I am convinced that we will see incredible creations and extraordinary artists emerge. Being able to contribute to all this is a mission worth living for.”

With results that were originally unthinkable, Spotify has also earned credit for truly extraordinary achievements. Once again.