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Portrait of Daniel Ek

Daniel Ek

Spotify

Music and audio streaming platform · Stockholm, Sweden

Portrait: Lukasz Kobus/European Commission / Wikimedia Commons, CC BY 4.0

$26.5B valuation
Direct listing on NYSE
2018
Direct Listing
Europe
Regional desk

The founder

Daniel Ek, born in Stockholm’s Rågsved district in 1983, built websites for local businesses from age 13 and made his first fortune before 23 by selling ad-tech startup Advertigo. He co-founded Spotify with Martin Lorentzon in 2006 to build a legal, licensed alternative to piracy sites, and remains CEO.

How it was taken public

Spotify listed on the NYSE via a direct listing on April 3, 2018 — skipping underwriters and new share issuance, a first for a company of its size — opening at $165.90 and closing its first day at $149, valuing the company at $26.5 billion. The unconventional structure let existing shareholders sell directly to the public without the lock-up-driven price pop of a traditional IPO, and set a template later followed by companies like Slack.