Shopify Raises $100 Million Series C Round

Posted by Rob Lewis

Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after the trio attempted to open an online snowboard store.  Lütke, a programmer by trade, could not find a product that matched their store's needs, so he decided to build one of his own.

Two years later the founders decided to share their code to help others sell items online and Lütke created a template for online stores in which clients would provide the pictures and products. Shopify was born.

In 2010 Shopify announced a $7 million in Series A round. In 2011 they followed it up with a $15 million Series B round.

Today Shopify announced that they have secured a $100 million Series C round that includes existing investors Bessemer Venture Partners, FirstMark Capital, Felicis Ventures, and Georgian Partners, joined by OMERS Ventures and New York's Insight Ventures Partners.

Shopify's chief product officer, Harley Finkelstein told Techvibes that the $100 million will be used to transition the company from being an e-commerce platform to being a commerce platform.

Finkelstein expanded: "Shopify has done a really good job of democratizing e-commerce. We've become a really great online retail platform With this money we want to move from being an e-commerce platform to being a commerce platform. Whether that's online, offline or mobile, our view is that it doesn't really matter where the transaction happens. What matters most is that retailers are providing consumers with choice on how they purchase."

SEE ALSO: Shopify Tops List of Cyber Monday Destinations Behind Only Amazon and eBay

"Previously most companies started offline and then moved online eventually," he continued. "We're actually seeing companies starting online and then moving offline—whether that be a pop-up shop, farmers' market, cash and carrry tradeshow or even opening up a brick and mortar store after the fact. Shopify becomes this hub where all your data goes through—your inventory, your customer information, your financial reporting."

Finkelstein ended our call with the bold idea that "Shopify powers all of your commerce." With $100 million dollars in the coffers it is only a matter of time.

This week Shopify signed up its 80,000th customer and retailers who use Shopify are on track to book more than $1.6 billion in sales this year. Shopify has over 300 employees and is hiring.

According to the Globe and Mail, anonymous sources value Shopify as a $1 billion company based on this financing.

Company:
Shopify
Website:
http://www.shopify.ca
Location:
Ottawa, Ontario, Canada

Shopify is an Ottawa based commerce platform that allows anyone to easily sell online, at their retail location, and everywhere in between. Shopify offers a professional online storefront, a payment solution to accept credit cards, a point of sale system to power retail sales and a card reader to accept payments through a mobile phone. Shopify currently powers over 80,000 active online stores around the world,... more

Company:
OMERS Ventures
Website:
http://www.omersventures.com
Location:
Toronto, Ontario, Canada

We're OMERS Ventures and we are as passionate about your success as you are about your company. We are looking for like-minded partners who have a shared vision of building a vibrant and successful Canadian knowledge economy. OMERS Ventures is the venture capital arm of OMERS, one of Canada's largest pension funds with over $53 billion in net assets. more


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Rob Lewis

Rob Lewis

Rob is the President of Techvibes Media and Editor-in-Chief of Techvibes.com.  His diverse background includes stints in International Trade Finance, Web Development, and Enterprise Software and he is a graduate of the University of British Columbia, British Columbia Institute of Technology, and Simon Fraser University. When not running Canada's leading technology media property, Rob can be... more



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