A dyslexic, ADHD, burnt out programmer moves across the world for love. After losing his job, he bootstraps a biz to $5M ARR.
The crazy part?
Today the company is worth over $184 BILLION.
The wild story of the best son-in-law ever 👇🏽👇🏽👇🏽
The crazy part?
Today the company is worth over $184 BILLION.
The wild story of the best son-in-law ever 👇🏽👇🏽👇🏽
1/ Bruce McKean was happy to hear that his daughter Fiona was moving back to Canada.
She had been living with her boyfriend in Germany for almost a year. They had met snowboarding at Whistler in 2002.
He was concerned with her choice when she asked if they could move in...
She had been living with her boyfriend in Germany for almost a year. They had met snowboarding at Whistler in 2002.
He was concerned with her choice when she asked if they could move in...
2/ Tobi (her boyfriend) thought he had a job lined up in Canada but his offer was revoked when they realized he had no visa.
After checking with a lawyer, he discovered that he couldn't work in Canada.
But he could start a company...
After checking with a lawyer, he discovered that he couldn't work in Canada.
But he could start a company...
3/ He settled on one of his favorite hobbies: snowboards.
Scott Lake, a friend of the McKean's, was his partner and CEO.
Each put in $20K. Bruce helped with a few bills.
They wanted to ship v1 within weeks, but it was a disaster...
Scott Lake, a friend of the McKean's, was his partner and CEO.
Each put in $20K. Bruce helped with a few bills.
They wanted to ship v1 within weeks, but it was a disaster...
4/ There was no simple software to host an ecommerce store.
Around then, a friend back home in Germany IM'd Tobi about this new coding language: Ruby on Rails.
He fell in love.
His burnout wasn't about code. It was about Java. He started building...
Around then, a friend back home in Germany IM'd Tobi about this new coding language: Ruby on Rails.
He fell in love.
His burnout wasn't about code. It was about Java. He started building...
5/ It took almost 3 months of 16 hour days to build the Snowdevil store exactly how they wanted it.
They only sold ~40 boards that season, but the Rails community was in love with the software.
Jan 2005, they shut down the store to commercialize the platform instead...
They only sold ~40 boards that season, but the Rails community was in love with the software.
Jan 2005, they shut down the store to commercialize the platform instead...
6/ Jaded Pixel was founded to accomplish 3 ecommerce edicts:
• create barrier free ecommerce software that is easy for sellers to use
• give buyers a well-designed storefront and an uncomplicated check-out
• make communities happen
Their first (and only) product: Shopify
• create barrier free ecommerce software that is easy for sellers to use
• give buyers a well-designed storefront and an uncomplicated check-out
• make communities happen
Their first (and only) product: Shopify
7/ Daniel Weinand, an old friend of Tobi's, chased Canadian love to Ottawa in August 2005.
A dev turned designer, he was a powerful compliment to the team.
They were ready for primetime, but the product wasn't...
A dev turned designer, he was a powerful compliment to the team.
They were ready for primetime, but the product wasn't...
8/ Shopify launched in 2006 without much fanfare.
It was free, but they took 2-3% of the total transaction volume.
Used by a few Rails developers and some of Daniel's designer friends, they reached $8,000 MRR by 2007.
It wasn't enough. The company was almost bankrupt.
It was free, but they took 2-3% of the total transaction volume.
Used by a few Rails developers and some of Daniel's designer friends, they reached $8,000 MRR by 2007.
It wasn't enough. The company was almost bankrupt.
9/ Out of the blue, they got the call that saved them.
It was John Phillips, a telecom executive turned angel. One of his CTOs had been gushing over about Shopify's ease of use.
He offered them $250,000 at a $3MM valuation, and Bruce McKean finally stopped paying their bills.
It was John Phillips, a telecom executive turned angel. One of his CTOs had been gushing over about Shopify's ease of use.
He offered them $250,000 at a $3MM valuation, and Bruce McKean finally stopped paying their bills.
10/ Everything changed for Shopify in 2007.
Scott knew that a technical product needed a dev CEO, and planned to step down from the role, encouraging Tobi to take it.
Tobi refused, wanting to remain CTO.
Scott knew that a technical product needed a dev CEO, and planned to step down from the role, encouraging Tobi to take it.
Tobi refused, wanting to remain CTO.
11/ Earlier that year they had changed pricing from a % of total transactions to offer a flat monthly fee.
That encouraged larger stores to start trying out the platform, and growth began to explode...
That encouraged larger stores to start trying out the platform, and growth began to explode...
11/ 2008 saw them grow over 800% to 60K MRR.
John pushed Tobi to step up and become CEO saying, "Tobi, you will never find anyone who will care about Shopify as much as you do. And so you should just give this a go."
April 2008, the "awkward developer" took the top spot.
John pushed Tobi to step up and become CEO saying, "Tobi, you will never find anyone who will care about Shopify as much as you do. And so you should just give this a go."
April 2008, the "awkward developer" took the top spot.
12/ By 2009, the Shopify ecosystem was beginning to thrive with over $100MM in lifetime sales through the platform.
That same year saw the Shopify App Store launch, further cementing the platform as the most accessible and extendable option to get started selling online.
That same year saw the Shopify App Store launch, further cementing the platform as the most accessible and extendable option to get started selling online.
13/ With competitors like BigCommerce and Magento popping up, they went to raise their first VC round in 2010 with just over $5MM ARR.
At first, nobody wanted to invest if they wouldn't move to the Bay.
Their cloud first approach, tech team, and app ecosystem landed them $7MM.
At first, nobody wanted to invest if they wouldn't move to the Bay.
Their cloud first approach, tech team, and app ecosystem landed them $7MM.
14/ They 7X'd to reach 740MM in store revenues just two years later in 2012.
They had become one of the largest ecommerce platforms in the world. Today, they're #2 behind WooCommerce.
They had become one of the largest ecommerce platforms in the world. Today, they're #2 behind WooCommerce.
15/ Shopify IPO'd in May 2015, valuing the company at $1.27B.
They’ve 154x'd since - the company is valued at over $190 BILLION. So i
Bruce, due to paying the early bills, is now a billionaire along with Tobi, and John. Alongside countless Canadians millionaires from the team.
They’ve 154x'd since - the company is valued at over $190 BILLION. So i
Bruce, due to paying the early bills, is now a billionaire along with Tobi, and John. Alongside countless Canadians millionaires from the team.
16/ Sources
producthabits.com/shopify-grew-s…
brainstation.io/magazine/a-bri…
shopify.com/partners/blog/…
investorplace.com/2019/08/shopif…
The investment memo from BVP is worth a read for a more in depth look at the company: bvp.com/memos/shopify
producthabits.com/shopify-grew-s…
brainstation.io/magazine/a-bri…
https://twitter.com/tobi/status/1313800252105863169
https://twitter.com/tobi/status/1333743644252250112
shopify.com/partners/blog/…
investorplace.com/2019/08/shopif…
The investment memo from BVP is worth a read for a more in depth look at the company: bvp.com/memos/shopify
17/ Why I love this story, it’s a reminder that:
1) The path you start is rarely the one you end on
2) Grow with, not just because of, your customers
3) Simplicity and ease of use are #1
4) You can learn to be a CEO
And that anyone anywhere can do it...
1) The path you start is rarely the one you end on
2) Grow with, not just because of, your customers
3) Simplicity and ease of use are #1
4) You can learn to be a CEO
And that anyone anywhere can do it...
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