Toby Lutke: Journey to Success

Overview

• Co-founder and CEO of Shopify
• Net worth: $3.8 billion (Forbes)
• Shopify: 11th largest company in Canada
• Video purpose: To explore Lutke's journey and success factors

Early Life

• Birth: July 16, 1981, Koblenz, Germany
• Family Background:
  • Father: Internist
  • Mother: Teacher for special needs children
• First Computer: Schneider CPC; sparked interest in coding
• Education:
  • Authority issues at school; avoided exams
  • Focused on computer programming and entrepreneurial ventures

Entrepreneurial Spirit

• Early signs of entrepreneurship: Bought in bulk and sold at markup
• Apprenticeship: Koblenzer Karl Benz School (program for future programmers)
• Frustration with Java led him to explore other programming resources

Move to Canada

• Met Fiona McKean during snowboarding trip to Whistler, BC
• Moved to Canada in 2002 at age 22 to be with Fiona
• Initially worked with Siemens; later started a business

Founding Shopify

• First Business: Snowdevil (2004) - online snowboard store
  • Created e-commerce site using Ruby on Rails
  • Sourced products from small snowboard companies
• Realization: Need for better e-commerce software
• Formation of Shopify:
  • Co-founded with Scott Lake in 2006
  • Initial funding: $200,000 from friends and family
  • First product: Shopify software

Growth of Shopify

• Revenue Model: Started with commission, shifted to subscription model
• Significant Milestones:
  • 2008: Financial crisis led to increased demand for online stores
  • 2009: Launched API and Shopify App Store; $100 million gross sales
  • 2010: 20 employees; named fastest-growing company in Ottawa
  • 2011: Expanded to 15,000 stores in 80 countries
  • 2012: Became finalist for Startup of the Year; onboarded 40,000 stores
  • 2013: Acquired Jet Cooper; launched Shopify Pay
  • 2015: Listed on Toronto and New York stock exchanges; raised $131 million
  • 2021: Sales hit $4.9 billion; over 10,000 employees

Social Impact and Philanthropy

• Digital Literacy: Sits on the board of Canada's Learning Code
• Awards: Meritorious Service Cross (2018)
• Environmental Initiatives:
  • Donated $1 million to Team Trees (2019)
  • Donated $1.2 million to Team Seas (2021)
• Thistledown Foundation: Founded with $150 million for environmental initiatives and health care during COVID-19

Conclusion

• Toby Lutke's story illustrates the importance of early exposure to technology and the drive to innovate.
• His achievements in the tech sector reflect both his entrepreneurial spirit and commitment to social causes.