Ottawa is miles away from achieving Silicon Valley status, but it’s getting there. In 2010, Tobi Lutke and Bessemer Ventures met. Tobi was seeking a few million to inject into his upcoming business in Canada. He had very little in the way of cash, so his father-in-law had to pay his employees.
Bessemer wasn’t very sure about this business arrangement. How can start-up thrive in every chilly Ottawa? He decided to invest anyway and injected $7 million in the business, which valued it at $25 million.
Today, the firm, Shopify, is worth $160 billion. The company has potential and might just hit the trillion-dollar mark in the coming years.
The firm makes it very easy for would-be entrepreneurs to put up an online store. Everything is done for them, from webpage creation, order shipping to payment processing.
Last week, the firm reported its earnings, the business is doing so well.
Currently, over a million merchants are on the site, with close to $120 billion worth of goods sold in 2020 alone.
Many people are yet to acquaint themselves with Shopify, yet the company is 6th largest in the world, right behind the Home Depot. Over the past two years, their stocks have been on the climb, earning investors nearly 600 percent in gains.
The online shopping craze is slowly infecting Americans. Sales reached $861 billion last year, a 44 percent rise, year on year, which is three times the typical rate. Today, many more Americans are subscribed to Amazon prime delivery service than those who voted in the 2016 election.
This might make most people think the opportunity flew past, and it’s too late. They look at how much money people have made from businesses like Shopify and think there’s no more money to be made.
It’s only getting started. In 2020 alone, 310 million more Americans accessed the internet, even though 86 percent of daily spending is offline. Nearly everyone has access to the internet.
Disruption is taking place in America’s critical industries. In 2017, Carvana, an online car seller, had a difficult time. So, it gave itself up for sale to CarMax for $1 billion. The deal did not happen. CarMax would not buy. Today, Carvana is worth $49 billion, twice more than their rival. How did they get there? They developed an up that lets car sellers offload their merchandise in under 10 minutes.
America’s real estate is also seeing a similar boom. Today, the norm has changed. Internet realtors such as Redfin and Zillow can purchase your home. They don’t do open houses back and forths or waiting for months for buyers to raise the asking price.
Disruptions are just getting started, expect bigger things in the near future.