Tobias Lutke never meant to start a software company. In 2004, the Ottawa-based entrepreneur launched an online snowboard retailer but quickly discovered that the only e-commerce software on the market was terrible. "It was made by people who clearly never used it," says Lutke. "It focused on all the wrong things."
A programmer by training, Lutke decided to build his own software. When word spread, people started asking if he'd share it. Meantime, the end of winter meant snowboard season had wrapped up. "We started thinking, 'Maybe we can turn this into a software business,'" recalls Lutke. In 2006, Shopify Inc. formally launched, offering small-business owners everything they need to run an online store, including a slick-looking storefront, unlimited web hosting, a secure shopping cart and a custom domain name.
Now, Shopify is an up-and-coming Canadian tech star. With slightly more than 100 employees, the firm serves almost 21,000 customers in 80 countries and has been profitable since 2008. Shopify has been popular with investors, too. In December 2010, the company raised $7 million in venture capital; last fall, it secured another $15 million.
Although Shopify remains small by global tech standards, it punches well above its weight. For its recent Build a Business contest for retailers using the Shopify platform, the firm offered a $100,000 prize and mentorship from modern-day management gurus Seth Godin, Timothy Ferriss and Gary Vaynerchuk. Earlier this year, Shopify placed ninth in the retail category of Fast Company's most innovative companies ranking.
Indeed, the firm's top priority is innovation rather than revenue generation. "I think revenue is a side effect of doing other things right," explains Lutke. "I'm mostly interested in making amazing products." That's food for thought for anyone who's so busy today they neglect the needs of tomorrow.
Read other entrepreneurial success stories in "The Fabulous 30."
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