Shopify CEO Tobi Lütke on a classic mistake when dealing with founders – and why their mindset is worth its weight in gold in crises.
Companies often underestimate the potential of employees with entrepreneurial experience. This is what Shopify CEO Tobi Lütke says in the episode of the “Founder’s Podcast”.
“I think that’s something very special,” he says of the way founders think. “And companies often reject that. They isolate these people.”
Lütke, who co-founded the e-commerce group Shopify in 2006, describes a typical pattern in large organizations: after a takeover or hiring, founders are not brought into central roles, but rather pushed to the sidelines. They often end up in so-called “skunk works” teams or internal innovation departments.
What he changed at Shopify
Although such units sound like freedom and the joy of experimentation, in practice they often have little influence on the actual core business. “It’s kind of like a daycare center for people who tell you that your shit doesn’t smell right. And your shit actually smells,” Lütke says. This refers to founders who openly address problems and question existing structures. “I then say: You can’t put them in a startup daycare center.”
Lütke says he also observed this pattern at Shopify during the pandemic. He then deliberately made the founders of the acquired companies more visible and gave them more responsibility. In some cases he even placed them above existing managers. He also uses his own Slack channel with the founders of the acquired startups to ask them directly for support.
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Shopify’s recent acquisitions include logistics company Deliverr in 2022, influencer marketing startup Dovetale in the same year, and workplace messaging platform Threads in 2024.
Founders remain in key roles at Shopify
Dhe founders of Dovelate and Threads continue to work on product features at Shopify, while the former Deliverr CEO left the company after a year and founded a new logistics startup.
In Sunday’s podcast, Lütke added that he can easily identify employees who adapt quickly and perform well in crisis situations.
To recognize such employees, he asks them a simple question: “Have you ever founded a company?”
