Shopify's CEO says companies that hire founders often make a big mistake: Don't 'put them in like founder day care'

• Shopify CEO Tobi Lütke said companies undervalue founders' experience and leadership.
• Lütke said he elevated the founders of Shopify's acquisitions during the pandemic.
• He said that he asks potential hires: "Have you started a company before?"

Don't put your best employees on the "skunk work team," says Shopify's CEO.

On an episode of the "Founder's Podcast" released on Sunday, Tobi Lütke said that companies often fail to recognize the potential of employees with entrepreneurship experience.

"I feel like it's a very special thing," he said about the unique approach founders have. "And companies reject it. Companies cocoon them."

Lütke, who co-founded the Canadian e-commerce firm in 2006, added that companies make the mistake of putting these founders on the "outskirts" and assigning them the "skunk work team."

"It's day care for people who tell you that your shit doesn't smell right. And your shit does smell," he said. "I'm like, 'No, you don't get to put them in like founder day care.'"

He shared that this happened in his company during the pandemic. When he noticed, he made the founders of the companies Shopify has acquired more visible, even elevating them above other managers. Lutke said that he has a Slack channel with the founders of Shopify's acquisitions, where he asks them for help.

Shopify's recent acquisitions include logistics firm Deliverr in 2022, influencer marketing startup Dovetale that year, and workplace messaging platform Threads in 2024.

The founders of Dovetale and Threads remain in product roles at Shopify, while the CEO of Deliverr moved on to start another logistics startup after a year at Shopify.

On Sunday's podcast, Lütke added that he can easily identify employees who will adapt quickly and perform well in a crisis situation.

He said he asks them: "Have you started a company before?"