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ROSS LIPSON / BUILDING AGAIN IN PERSONAL FINANCEDUTCHIE CO-FOUNDER / FORMER CEOFROM RESTAURANT MENUS TO RETAIL SOFTWARE
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Ross Lipson and the value of a very long line

Before Dutchie’s $3.75 billion valuation came a stack of takeout menus, a Canadian food-ordering business and a queue in Bend. Ross Lipson kept finding opportunities where other people were waiting.

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Ross Lipson was standing outside a dispensary in Bend, Oregon, when he asked the person behind him what he planned to order. The response amounted to an entirely reasonable objection: how could anyone decide before seeing the menu? Oregon’s new recreational cannabis market had customers, enthusiasm and queues. The menu, rather inconveniently, was waiting at the other end.

For Lipson, this was familiar territory. He had spent years helping people order food online. Here was another purchase that began with uncertainty, continued with waiting and ended in a hurried decision at a counter. A customer might regard that sequence as the price of admission. Someone who had already built ordering businesses could see a product specification taking shape.

Dutchie, which he co-founded with his brother Zach in 2017, would let shoppers browse dispensary menus and place orders ahead of time. Four years later, investors valued the company at $3.75 billion. There is something pleasantly disproportionate about that journey: a business with a valuation containing nine zeros, beginning with the ordinary wish to know what was for sale.

The queue makes a good opening scene, but Lipson’s career becomes more interesting when you look backward. He had encountered versions of this problem before. By the time he arrived in Bend, he had both the experience to recognize it and enough distance from his previous business to consider doing the work again.

An education in takeout

Lipson grew up in West Bloomfield, Michigan. He went to Michigan State University in 2005, where takeout menus offered an education of their own. Restaurants were trying to reach students through paper; students were trying to assemble dinner from the resulting pile. He left college during his first week and began working on online restaurant ordering.

It was an early encounter with a recurring feature of his career: the gap between what a customer wants to accomplish and the machinery available to accomplish it. Dinner was the immediate objective. Looking through paper menus, calling a restaurant and relaying an order were steps that could move onto a website. The appetite was already there.

In 2008, he and Howard Migdal launched GrubCanada. The service brought restaurant menus and ordering online in Canada, giving Lipson another market in which to develop the same basic proposition. Customers gained a way to find and order food; restaurants gained a route to those customers. It was a business built between two parties who already wanted to meet.

GrubCanada also took the pair onto CBC’s Dragons’ Den. They accepted an offer from Brett Wilson of $200,000 for half the company, although the deal was never completed. That distinction is a useful antidote to the television version of entrepreneurship, where a handshake is often made to feel like the final act. Businesses continue after the credits.

Just-Eat Canada acquired GrubCanada in October 2011. The acquisition added more than 200 restaurants in Ontario and British Columbia to the buyer’s network. Lipson had gone from trying to improve a student’s dinner order to helping build a business another operator wanted to buy. He then gave himself something founders often promise themselves: time away.

2005College food ordering
2008GrubCanada launches
2011Just-Eat acquisition
2017Dutchie launches

The detour that ended in Bend

After the sale, he travelled through the United States, camping, hiking and snowboarding. He eventually settled in Bend, moving there in 2012. A snowboarder choosing Central Oregon is hardly a baffling plot twist. Still, the move mattered to the business that followed. It put an experienced ordering entrepreneur inside an early recreational cannabis market, as a customer.

His explanation of Dutchie’s beginnings gives timing a substantial role. In a 2022 conversation, he recommended Malcolm Gladwell’s Outliers and described his own experience through the alignment of person, place and moment. That is a more revealing self-portrait than a claim to have predicted everything. He had acquired relevant skills before he knew exactly where he would use them.

Oregon supplied the next setting. When recreational sales began in 2015, the crowds outside dispensaries made demand visible. The less visible opportunity was the information customers lacked while they waited. A useful ordering tool could move browsing and decision-making earlier, before the shopper reached the counter and everyone else’s patience became part of the transaction.

Lipson brought the idea to Zach, whose background included financial-adviser software company RepPro. Their earlier businesses had given them different kinds of experience. Ross knew online ordering and selling. Zach would become Dutchie’s chief product officer. The family connection came with a practical advantage: a brother could question the pitch without needing a diplomatic introduction.

Ross Lipson, left, and his brother Zach standing in the Dutchie office
Same family. Different gears. Ross (left) and Zach Lipson at Dutchie. Photo courtesy of the Lipsons, via Deadline Detroit.

Two brothers, different speeds

“At my core, I’m a salesman,” Lipson said in 2019. He credited Zach with making a product that backed up the vision. It is a compact description of their arrangement: Ross could open the conversation, but the software had to justify keeping it going. A convincing pitch might bring a retailer in. The product would have to earn the next month.

He later described himself as fast-moving and eager to drive the car as quickly as possible, with Zach taking the more methodical approach. That comparison says something about his appetite for momentum. It also acknowledges the value of a co-founder who checks the vehicle. Anyone who has worked with a sibling may recognize the arrangement, even without the venture funding.

The product itself produced an early joke at Lipson’s expense. One dispensary put pizza slices on its menu, and a pizza order appeared on Dutchie. After moving from food into cannabis, he had managed to find his way back to dinner. The anecdote is small, but it catches the continuity in his work better than another valuation figure could.

Dutchie’s commercial position was specific. Retailers could use its ordering tools on their own websites, and customers could arrange pickup or delivery where permitted. Lipson emphasized the dispensary’s relationship with its customers. His team was supplying the retailer with software for a transaction, extending the shop’s capabilities beyond the people physically standing inside it.

“At my core, I’m a salesman.”Ross Lipson, 2019

The menu was only the beginning

A menu seems simple until the inventory changes. In cannabis retail, products sell out, new stock arrives and online listings need to keep pace. Lipson described early orders for unavailable items as a serious problem. Connecting Dutchie to point-of-sale systems helped keep the online menu aligned with what a dispensary could actually supply. The attractive storefront depended on less glamorous plumbing.

In 2018, Dutchie raised a $3 million seed round, with backing from Casa Verde Capital and Kevin Durant’s investment organization. By October of that year, the team had grown to 14 people. The next stage required more than signing up shops: the product, support and integrations had to work as the company moved into additional markets.

By September 2020, Dutchie had 110 full-time employees. Lipson described growth and market share as priorities, while also acknowledging profitability as something the company needed to reach. Employee and customer satisfaction were among the measures the leadership watched. That makes the expansion less abstract. More orders meant more people depending on the software, on both sides of the counter.

The scope widened in March 2021. Dutchie raised $200 million at a $1.7 billion valuation and announced the acquisitions of Greenbits and LeafLogix, both point-of-sale software businesses. The ordering company was moving further into the systems a dispensary used to run its operations. Each acquisition brought the promise of closer coordination, along with the work of bringing businesses together.

For Lipson, the appeal was that an online ordering service depended on the systems beneath it. If those systems could communicate more effectively, retailers would have fewer disconnected pieces to manage. The shift took him deeper into the merchant’s working day. The original queue had pointed toward a much broader set of operational problems.

A year of financing / 2021
March
$1.7B
October
$3.75B
Dutchie’s reported private-company valuations. These figures describe the company, not Ross Lipson’s personal wealth.

When the numbers got bigger than the line

In October 2021, Dutchie announced another $350 million in financing, led by D1 Capital Partners. The company’s valuation reached $3.75 billion, up from $1.7 billion that March. Other backers included Tiger Global, Thrive Capital and Casa Verde. Celebrity connections made good conversation; the underlying wager concerned software used by thousands of retailers.

At that point, Lipson said Dutchie worked with more than 5,000 dispensaries and processed over $14 billion in annualized sales for them. Those sales belonged to the retailers. The distinction matters when reading a technology company’s growth story: transaction volume measures activity passing through the system, rather than the software company’s own revenue. Dutchie charged dispensaries a licensing fee.

The team had reached roughly 500 people by October 2021. Lipson’s stated priorities included hiring and product development, while the company monitored store count, transaction volume and support. An idea that began with a customer’s inconvenience had become an organization responsible for the ordinary reliability of other businesses. That is where a founder’s story fills up with less photogenic obligations.

He had also expressed concern, back in 2019, about high valuations and the influx of capital into cannabis. His public enthusiasm coexisted with an awareness that market excitement could overshadow the businesses being built. It is worth holding that earlier caution alongside the later financing announcements. A funding round is an event; operating a company takes place between them.

5,000+Dispensaries using Dutchie in October 2021, during Lipson’s tenure.

Another beginning, after Dutchie

In December 2022, Dutchie announced that Ross and Zach had departed. Executive chairman Tim Barash became CEO. The announcement placed a clear boundary around Ross’s operating tenure: he helped found and scale Dutchie, then left the company. The years after that change belong to a different chapter, even when older biographies continue to introduce him as its chief executive.

His public LinkedIn posts now describe work on a new venture in personal finance, backed by Ribbit Capital. He has sought founding engineers for an AI-based service intended to help people manage financial tasks. The disclosed ambition concerns an always-working financial agent, spanning cash flow, savings and other money decisions. These are his plans for a product, rather than evidence of what it has delivered.

There is a recognizable thread connecting that ambition to the earlier businesses. Paper menus, dispensary inventories and personal finances each involve information that people have to gather before they can act. Lipson’s proposed products try to make that process easier. The industries differ considerably. His interest in the space between wanting something done and getting it done has endured.

The pizza order on Dutchie remains an apt little ending to the first part of the story. He changed markets, found a new problem and built a different company, only for a slice of his old business to turn up on the screen. Ross Lipson’s career has involved departures, detours and a recurring question: why is this ordinary transaction taking so much work?

Keep the conversation going

Ross on LinkedIn ↗Dutchie’s company story ↗Watch: The Dales Report interview, 2020 ↗Watch: Ross on the cannabis industry, 2022 ↗Read: The Tidemark conversation, May 2022 ↗Read: Dutchie’s leadership change, December 2022 ↗