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Vishu Bheda
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Medial • 3m
Shopify founder explains what the VCs who passed on Shopify got wrong When Tobi Lütke pitched Shopify to investors, they said no. They thought the market was too small—only 40,000-50,000 online stores existed then. Even if Shopify captured half, it didn’t seem like a big enough opportunity. Years later, one of those VCs asked Tobi what they missed, as Shopify had grown into a $100 billion giant. Tobi’s response was insightful: “You were right about the small market, but Shopify solved the problem causing it. Starting an online store was too hard and expensive. We made it easy, and that unlocked massive growth.” Tobi believes the key is reducing friction. “Friction between demand and supply shapes the world. Every time we simplify something, more people can participate.” Shopify’s success proves this: over a million merchants now use it. The lesson? Don’t just see a small market; look at the barriers holding it back. Solving those opens massive opportunities. If you found this helpful then follow me for more valuable startup insights from the world's best founders.
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