# Shopify: Tobias Lütke. How a snowboarder built a $150 billion business (2019)

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2026-06-08
- Length: 58m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019

## Summary

Tobias Lütke, co-founder and CEO of Shopify, explains how his 2004 attempt to launch a snowboard store called Snowdevil led to the creation of the Shopify e-commerce platform. Lütke details the pivot from selling physical goods to building software using Ruby on Rails, the critical decision to switch to a subscription pricing model the night before his wedding, and how the 2008 financial crisis unexpectedly fueled merchant adoption. He also discusses his initial reluctance to become CEO, his journey to Silicon Valley for venture capital, and Shopify's eventual IPO in 2015.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=0) Introduction: Tobias Lütke and the origins of Shopify
- [5:25](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=325) Lütke's background in Germany, snowboarding, and moving to Canada
- [11:20](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=680) Founding Snowdevil and the realization that e-commerce software was missing
- [17:37](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=1057) Building the initial store using Ruby on Rails and launching Snowdevil
- [23:04](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=1384) The pivot from snowboards to software and naming it Shopify
- [31:53](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=1913) Switching to a subscription model the night before his wedding
- [34:36](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=2076) Scott Lake's departure, Lütke becoming CEO, and the 2008 financial crisis
- [42:24](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=2544) Lütke's struggle with CEO responsibilities and learning to manage growth
- [46:04](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=2764) Testing marketing channels, raising VC funding, and scaling the business
- [54:27](https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019#t=3267) The 2015 IPO, Shopify's 'invisible' brand strategy, and reflections on luck

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Direct-to-consumer & e-commerce](https://hardwarepodcasts.com/topic/direct-to-consumer)

## Most relevant to

early-stage companies

## Mentioned

- Shopify (product)
- Snowdevil (product)
- Ruby on Rails (tool)
- Ruby (tool)
- Siemens (company)
- U.S. Bank (company)
- Bessemer (company)
- Amazon (company)
- Google (company)
- Lehman Brothers (company)

## Related episodes from other shows

- [078: Selling Products Direct to End-Users via Shopify](https://hardwarepodcasts.com/podcast/product-startup/2021-06-02-078-selling-products-direct-to-end-users-via-shopify) (Product Startup)
- [How To Build A Sustainable Brand On Shopify](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2021-02-15-how-to-build-a-sustainable-brand-on-shopify) (The Startup CPG Podcast)
- [199: Selling a New Product Successfully on Amazon](https://hardwarepodcasts.com/podcast/product-startup/2023-10-28-199-selling-a-new-product-successfully-on-amazon) (Product Startup)
- [044: Turning customizable jackets into a multi-million dollar business, Elyse Daniels of Exodus Wear](https://hardwarepodcasts.com/podcast/product-startup/2017-03-14-044-turning-customizable-jackets-into-a-multi-million-dollar-business-elyse-dani) (Product Startup)
- [220: How Storytelling Drives Consumer Product Sales](https://hardwarepodcasts.com/podcast/product-startup/2024-04-05-220-how-storytelling-drives-consumer-product-sales) (Product Startup)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/how-i-built-this/2026-06-08-shopify-tobias-lutke-how-a-snowboarder-built-a-150-billion-business-2019. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to How I Built This.