My guest today is Shopify co-founder and CEO Tobi Lütke.  We discuss the differences between founders and professional managers, how he’s scaled with Shopify, the constant fight against bureaucracy, how he thinks about innovation in a large company, and how he manages to keep his head when everyone else is losing theirs.   A coder at heart who emigrated from Germany to Canada two decades ago, Lütke co-founded the e-commerce giant Shopify in Ottawa in 2006. The Globe and Mail named Lütke "CEO of the Year" in November 2014,  and in May 2021 the company reported that it had more than 1.7 million businesses in approximately 175 countries using its platform. As of July 2022, Shopify is among the top 20 largest publicly traded Canadian companies by market capitalization, and the company’s total revenue for 2021 was $4.611 billion. Lütke previously appeared on Episode 41 of The Knowledge Project.   --   Want even more? Supporting Members get early access, hand-edited transcripts, member-only episodes, and so much more. Learn more.   Every Sunday, our Brain Food newsletter gives you a mental edge in 5 minutes with timeless insights you can use. Add it to your inbox.   Follow Shane on Twitter.   Our Sponsors:   MetaLab: Helping the world’s top companies design, build, and ship amazing products and services.   Aeropress: Press your perfect cup, every time.   House of Macadamias: Nourish your daily routine, and nurture your lifestyle.

Tobi Lütke, co-founder and CEO of Shopify, shares his insights on innovation and leadership. He discusses the transformative role of AI in business, emphasizing the importance of adapting organizational culture and strategy. Tobi highlights the concept of 'Founder Mode' and the significance of fostering 'islands' of innovation to drive creativity. He also dives into the dynamics of trust within organizations and the critical balance between operational efficiency and market challenges, ultimately advocating for authenticity in monetization strategies.

Tobi Lütke is the CEO and Co-Founder of Shopify, the powerhouse company allowing anyone to start and grow their e-commerce business. Over an incredible 18 years, Tobi has scaled Shopify to 10% of total US e-commerce, millions of merchants in over 170 countries, and a market cap today of over $60BN. Huge thanks to Harley Finkelstein for making this happen. In Today's Episode with Tobi Lütke We Discuss: 1. From a Small German Town to One of the World's Most Powerful CEOs: What did Tobi want to be when he was growing up? Who did Tobi learn most from in his younger years? How does Tobi think about the importance of mentorship in learning? What does Tobi know now that he wishes he had known when he started Shopify? 2. You Can Learn More from World of Warcraft Than You Can Companies: Why does Tobi believe you can learn more from World of Warcraft than you can from studying companies? Why does Tobi believe that humans are terrible at company building? What are the most obvious ways we can improve the quality of the companies we build? Why does Tobi believe that in-person is far superior to remote working? What are the nuances? 3. The Best Companies Operate with Many Constraints: Why does Tobi believe in all cases, constraints produce creativity? What is the difference between an enforced constraint and an artificial constraint? How can leaders create and enforce artificial constraints when they are not real? How do the best leaders use constraints to ensure their companies move faster and faster? 4. Inside the Mind of Tobi Lütke: Decision-Making & Prioritisation: How does Tobi reflect on his own decision-making process? How has it changed? Why does Tobi believe that sunk cost fallacy is BS and only leads to your outsourcing approval to someone else? Why does Tobi hate "black boxes"? How does he remove them from the org entirely? How does Tobi decide what to learn? What is his learning process once he has made this decision? How does Tobi decide what to prioritise in terms of strategic initiatives for Shopify?

Today, I interview fellow Ottawan and the founder and CEO of Shopify, Tobi Lütke. In case you’re still new to the internet, Shopify is the largest ecommerce platform that allows people to easily set up online storefronts to sell everything from jewelry to surfing lessons. Shopify began as a simple two man operation selling snowboards online, but it became clear rather quickly that it had the potential to grow into much more. Now Shopify employs more than 4,000 people and supports more than 600,000 businesses online. It’s a remarkable story, with a remarkable leader at the helm. There was so much I wanted to talk to Tobi about that we hop around quite a bit. Here are a few of the topics we discuss: Tobi’s thoughts on how video games helped him prepare to run a company How selling snowboards online slowly transitioned to the creation of one of the biggest tech companies in the world Why Tobi intentionally headquartered Shopify outside of Silicon Valley and how that fits into his overall growth strategy One of the most underrated resources Tobi leans on to mine nuggets of wisdom when trying to get insight or solve a problem The hard and valuable lessons Tobi learned as they scaled from a 2 employee company to a 4,000 employee company What the “Tobi test” is, and how it helps Shopify team members become more adaptable, unified and prepared when things go haywire How employees use the “trust battery” and how it fosters better teamwork, communication, and productivity throughout the company The benefits of hiring employees in a “secondary market” as opposed to a “primary market” and how that contributes to the unique culture at Shopify Tobi’s decision-making process and his philosophy on making quick vs analytic decisions Tobi’s unusual morning routine that gets him in the right mindset to tackle the day His optimistic view of AI and machine learning and how they will impact the way we do things in the future And more… Whether you’re building a business of your own, want to create a more dynamic and unified culture at work, or just like hearing entrepreneur war stories, this episode will not disappoint. Go Premium: Members get early access, ad-free episodes, hand-edited transcripts, searchable transcripts, member-only episodes, and more. Sign up at: https://fs.blog/membership/   Every Sunday our newsletter shares timeless insights and ideas that you can use at work and home. Add it to your inbox: https://fs.blog/newsletter/   Follow Shane on Twitter at: https://twitter.com/ShaneAParrish  

My guest today is Tobi Lütke, co-founder and CEO of Shopify. Having first spoken to Tobi at the beginning of the pandemic, just two months into it, this felt an opportune moment to revisit Shopify and the world through Tobi’s eyes. Among many things, we discuss Shopify’s evolution into the world of atoms-based building through Shopify’s fulfillment network, the value of infrastructure writ large, and the impact of market volatility on day-to-day business building. Please enjoy my conversation with Tobi Lütke.   For the full show notes, transcript, and links to mentioned content, check out the episode page here.   -----   This episode is brought to you by Canalyst. Canalyst is the leading destination for public company data and analysis. If you're a professional equity investor and haven't talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick.    -----   This episode is brought to you by Brex. Brex is the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best.   -----   Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.    Past guests include Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @patrick_oshag | @JoinColossus   Show Notes [00:02:44] - [First question] - His interest in infrastructure as a whole and why it’s underrated [00:07:18] - Whether or not we’re currently building enough digital infrastructure  [00:09:45] - Base level principles for decision making around building infrastructure  [00:13:17] - How much room is left for innovation and whether or not we’ll just reinvent basic human instincts [00:15:22] - Ways new ideas are fed into a product funnel at Shopify and greenlit [00:19:34] - Solving eCommerce infrastructure and what he attributes to Shopify’s success [00:24:23] - Overview of the Shopify Network and how it’s evolved over time  [00:31:04] - Lessons learned in an atom-driven world in regards to fulfillment and logistics [00:34:37] - Common ways bits thinkers are often wrong when solving atom problems [00:35:50] - Spreadsheets tend to win meetings and how the ROI on a fulfillment network impacts its ecosystem [00:40:26] - Navigating becoming an aggregator that sits on top of their merchants and whether or not there are plans to participate as a distributor [00:45:45] - Fair market value, what it’s been like managing through such a volatile market, and important takeaways [00:50:54] - Thoughts on capital allocation decisions as Shopify continues to grow [00:53:25] - Advice for company leaders effectively communicating with their teams about stock-based compensation  [00:59:04] - How much COVID altered their trajectory and what he’s most interested in as he looks out to the future [01:03:45] - What he’s learned about blockchains and the crypto space given recent events [01:08:45] - A new idea he’s encountered recently that he’s fallen in love with 

"Feedback is a gift." — Tobi LütkeTobi Lütke (@tobi) is the founder and Chief Executive Officer of Shopify. In 2004, Tobi began building software to launch an online snowboard store called Snowdevil. It quickly became obvious that the software was more valuable than the snowboards, so Tobi and his founding team launched the Shopify platform in 2006. He has served as CEO since 2008 at the company's headquarters in Ottawa, Canada.Tobi is an active advocate for computer literacy and education, and serves as a board member of Canada Learning Code, an organization working to give all Canadians access to digital skills. In 2014, Tobi was named The Globe and Mail's CEO of the Year. He served as Chair of the Digital Industries Table, an advisory board commissioned by the federal government to provide recommendations on how to turn Canada into a digital leader.Please enjoy!Click here for the show notes for this episode.This podcast is brought to you by Peloton, which has become a staple of my daily routine. I picked up this bike after seeing the success of my friend Kevin Rose, and I've been enjoying it more than I ever imagined. Peloton is an indoor cycling bike that brings live studio classes right to your home. No worrying about fitting classes into your busy schedule or making it to a studio with a crazy commute.New classes are added every day, and this includes options led by elite NYC instructors in your own living room. You can even live stream studio classes taught by the world's best instructors, or find your favorite class on demand.Peloton is offering listeners to this show a special offer. Visit onepeloton.com and enter the code TIM at checkout to receive $100 off accessories with your Peloton bike purchase. This is a great way to get in your workouts, or an incredible gift. Again, that's onepeloton.com and enter the code TIM.This episode is also brought to you by LegalZoom. I've used this service for many of my businesses, as have quite a few of the icons on this podcast, such as Automattic CEO Matt Mullenweg of WordPress fame.LegalZoom is a reliable resource that more than a million people have already trusted for everything from setting up wills, proper trademark searches, forming LLCs, setting up non-profits, or finding simple cease-and-desist letter templates.LegalZoom is not a law firm, but it does have a network of independent attorneys available in most states who can give you advice on the best way to get started, provide contract reviews, and otherwise help you run your business with complete transparency and up-front pricing. Check out LegalZoom.com and enter promo code TIM at checkout today for special savings and see how the fine folks there can make life easier for you and your business.***If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It takes less than 60 seconds, and it really makes a difference in helping to convince hard-to-get guests. I also love reading the reviews!For show notes and past guests, please visit tim.blog/podcast.Sign up for Tim’s email newsletter (“5-Bullet Friday”) at tim.blog/friday.For transcripts of episodes, go to tim.blog/transcripts.Interested in sponsoring the podcast? Please fill out the form at tim.blog/sponsor.Discover Tim’s books: tim.blog/books.Follow Tim:Twitter: twitter.com/tferriss Instagram: instagram.com/timferrissFacebook: facebook.com/timferriss YouTube: youtube.com/timferrissPast guests on The Tim Ferriss Show include Jerry Seinfeld, Hugh Jackman, Dr. Jane Goodall, LeBron James, Kevin Hart, Doris Kearns Goodwin, Jamie Foxx, Matthew McConaughey, Esther Perel, Elizabeth Gilbert, Terry Crews, Sia, Yuval Noah Harari, Malcolm Gladwell, Madeleine Albright, Cheryl Strayed, Jim Collins, Mary Karr, Maria Popova, Sam Harris, Michael Phelps, Bob Iger, Edward Norton, Arnold Schwarzenegger, Neil Strauss, Ken Burns, Maria Sharapova, Marc Andreessen, Neil Gaiman, Neil de Grasse Tyson, Jocko Willink, Daniel Ek, Kelly Slater, Dr. Peter Attia, Seth Godin, Howard Marks, Dr. Brené Brown, Eric Schmidt, Michael Lewis, Joe Gebbia, Michael Pollan, Dr. Jordan Peterson, Vince Vaughn, Brian Koppelman, Ramit Sethi, Dax Shepard, Tony Robbins, Jim Dethmer, Dan Harris, Ray Dalio, Naval Ravikant, Vitalik Buterin, Elizabeth Lesser, Amanda Palmer, Katie Haun, Sir Richard Branson, Chuck Palahniuk, Arianna Huffington, Reid Hoffman, Bill Burr, Whitney Cummings, Rick Rubin, Dr. Vivek Murthy, Darren Aronofsky, and many more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tobi Lütke (Shopify Founder & CEO), Kaz Nejatian (Shopify COO), and Balaji review how Shopify rose from tiny startup to $180B+ global economy, with an annual GMV on par with the GDP of New Zealand. In the process they touch on Hayek, the Hanseatic League, merchant cavemen, the history of the corporation, and the optimal level of platform decentralization. OUTLINE 00:00 - Introduction 02:39 - Shopify has the scale of a small country 08:49 - Lifestyle businesses take up your whole life 20:52 - SMBs can be harder than startups 27:13 - Shopify could invest in its merchants 32:23 - Shopify's economy is on par with Greece or New Zealand 38:40 - Money, time, risk, attention 39:55 - Is all retail a form of arbitrage? 47:14 - The history of the corporation informs the development of smart contracts 56:57 - Founders start as lead engineer, end up as chief psychiatrist 1:00:27 - Shopify is not just technology but community 1:06:26 - The concept of computational context 1:14:34 - Shopify as a dashboard for the global economy 1:22:48 - Atoms are so much more complex than bits 1:28:41 - Balancing centralized vs decentralized at Shopify 1:43:26 - If they could start a new country, what would Tobi and Kaz build? 2:03:28 - Kaz on working at Shopify 2:04:31 - Tobi's parting thoughts LINKS 1) 100 true fans: kk.org/thetechnium/1000-true-fans/ 2) Gobekli Tepe: smithsonianmag.com/history/gobekli-tepe-the-worlds-first-temple-83613665 3) Shopify active merchant: github.com/activemerchant/active_merchant 4) Fall of Civilizations: youtube.com/@FallofCivilizations 5) Founding vs Inheriting: thenetworkstate.com/founding-vs-inheriting 6) Shopify careers: shopify.com/careers VIDEO YouTube: youtube.com/watch?v=DfrhCGpRCPI CREDITS Editing: twitter.com/DholakiaJaydeep Images: twitter.com/elijah10T SOCIAL twitter.com/tobi twitter.com/CanadaKaz twitter.com/balajis thenetworkstate.com

Ben and David head north of the border to Ottawa, Canada to cover perhaps one of the greatest IPO success stories of the past 5 years, Shopify. From humble beginnings as a “lifestyle business” hawking hipster snowboard gear online to now routinely mentioned in the same breath as Amazon, the tale of Shopify and its incredible CEO Tobi Lütke’s ascent is not one to miss!Sponsors:WorkOS: https://bit.ly/workos25Huntress: https://bit.ly/acqhuntressStatsig: https://bit.ly/acquiredstatsig24More Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!© Copyright 2015-2025 ACQ, LLCLinks:https://www.snowdevil.cahttps://www.jadedpixel.comCitron’s “research” report:  https://citronresearch.com/citron-exposes-the-dark-side-of-shopify/Carve Outs:Ben: Moment smartphone camera lenses: https://www.shopmoment.comDavid: Quoteapro engineering and head of product roles — DM @david in the Acquired Slack ; Bill Gurley on Invest like the Best: http://investorfieldguide.com/gurley/Editor's note: Shopify actually powered $41b of sales, not $14b, in 2018, as discussed toward the end of the episode. $14b was the fourth-quarter number. While this changes the analysis of value captured at the end of the episode (Shopify only captures 2.5% of merchant sales as their own revenue, not 7%, which is admittedly very different), it doesn’t change overall sentiment on the company discussed in the episode.

In this enlightening discussion, Tobi Lütke, the visionary CEO and Co-founder of Shopify, shares insights into his unique leadership approach. He emphasizes the importance of continuous self-improvement and maintaining balance to combat burnout. Tobi reflects on his unexpected rise in tech, the role of motorsport in his life, and how it parallels business challenges. He advocates for the value of celebrating wins within startup cultures and explores the intricate relationship between personal happiness, ambition, and contentment.

Orlando Bravo is a Founder and Managing Partner of Thoma Bravo. He led Thoma Bravo’s early entry into software buyouts and built the firm into one of the top private equity firms in the world.  Tobi Lütke is the CEO and Co-Founder of Shopify, the powerhouse company allowing anyone to start and grow their e-commerce business. Dara Khosrowshahi is the CEO of Uber, where he has managed the company’s business in more than 70 countries around the world since 2017. Parker Conrad is the Founder & CEO @ Rippling, the company that lets you easily manage your employees’ payroll, benefits, expenses, devices, apps & more—in one place. Jamie Siminoff is the Founder and Chief Inventor @ Ring, with Ring Jamie, created the world’s first Wi-Fi video doorbell while working in his garage in 2011. The company sold to Amazon for $1BN. Martín Escobari is Co-President, Managing Director and Head of General Atlantic’s business in Latin America. Martín is Chairman of the firm’s Investment Committee and also serves on the Management and Portfolio Committees. Ariel Cohen is the Co-Founder and CEO @ Navan (formerly TripActions), the #1 travel management super-app used by over 8,000 companies. Tarek Mansour is the Founder and CEO @ Kalshi, the first regulated exchange where you can trade directly on the outcome of events. Brian Armstrong is the Co-Founder and CEO @ Coinbase, the easiest place to buy and sell cryptocurrency. Over the last 10 years, Brian has led Coinbase to today, a public company with over 3,500 employees and revenues of over $7.5BN in 2021. Question of the Day: What are the world's tech leaders running from?