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Lessons from a 2-time unicorn builder, 50-time startup advisor and 20-time board member | Uri Levine

Uri Levine is the co-founder of Waze, the world’s largest community-based traffic and navigation app, acquired by Google for over $1 billion. He’s also founded nine other companies, been on the board of 20 companies, and advised more than 50 companies. He’s most recently the author of Fall in Love with the Problem, Not the Solution: A Handbook for Entrepreneurs, hailed by Steve Wozniak as the “Bible for entrepreneurs.” Uri is dedicated to creating impactful startups that solve real-world problems and has seen everything from failure to moderate success to big success. In our conversation, we dig into: • Why falling in love with the problem is key to startup success • The phases of the startup journey and how to navigate them • Why firing is more important than hiring • How Waze iterated to achieve product-market fit • Tactics for telling a compelling story when fundraising • Much more — Brought to you by: • Vanta—Automate compliance. Simplify security: https://vanta.com/lenny • Mercury—The powerful and intuitive way for ambitious companies to bank: https://mercury.com/ • LinkedIn Ads—Reach professionals and drive results for your business: https://www.linkedin.com/podlenny Find the transcript at: https://www.lennysnewsletter.com/p/lessons-from-uri-levine Where to find Uri Levine: • X: https://twitter.com/urilevine1 • LinkedIn: https://www.linkedin.com/in/uri-levine • Website: https://urilevine.com/ Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ In this episode, we cover: (00:00) Uri’s background (02:50) Falling in love with the problem (09:01) Signs this is a big enough problem (10:52) The importance of passion (12:04) A pivot example (13:59) Where to find startup ideas (21:55) Finding product-market fit at Waze (29:43) The different phases of a startup journey (36:45) What investors don’t want to hear (39:51) Fundraising tips (48:00) How to make your presentations stronger (50:30) A wild fundraising story (53:44) Firing and hiring (59:48) The 30-day test (01:04:10) Understanding users (01:12:08) Talking to the right users (01:15:34) Lightning round Referenced: • Fall in Love with the Problem, Not the Solution: A Handbook for Entrepreneurs: https://www.amazon.com/Fall-Love-Problem-Solution-Entrepreneurs/dp/1637741987 • Waze: https://www.waze.com/ • Ben Horowitz on LinkedIn: https://www.linkedin.com/in/behorowitz/ • Ben Horowitz quote: https://quotefancy.com/quote/1635284/Ben-Horowitz-As-a-startup-CEO-I-slept-like-a-baby-I-woke-up-every-2-hours-and-cried • Michael Jordan quote: https://www.forbes.com/quotes/11194/#:~:text=I've%20lost%20almost%20300,that%20is%20why%20I%20succeed. • Steph Curry: https://en.wikipedia.org/wiki/Stephen_Curry • How Airbnb Used Word of Mouth to Change the Travel Industry Forever: https://truested.com/story/airbnb • Space Mountain: https://en.wikipedia.org/wiki/Space_Mountain_(Disneyland) • How Netflix builds a culture of excellence | Elizabeth Stone (CTO): https://www.lennysnewsletter.com/p/how-netflix-builds-a-culture-of-excellence • Steve Wozniak on LinkedIn: https://www.linkedin.com/in/wozniaksteve/ • Uri’s post about the conference in Guatemala with Steve Wozniak: https://www.linkedin.com/posts/uri-levine_jewishnewyear-speakers-book-activity-6980089544079486976-0ADa/ • Leonardo da Vinci quote: https://www.goodreads.com/quotes/9010638-simplicity-is-the-ultimate-sophistication-when-once-you-have-tasted • Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market: https://www.lennysnewsletter.com/p/geoffrey-moore-on-finding-your-beachhead • Nana Korobi Ya Oki: https://ikigaitribe.com/vlog/nana-korobi-ya-oki/ • That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea: https://www.amazon.com/That-Will-Never-Work-Netflix/dp/0316530204 • Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones: https://www.amazon.com/Atomic-Habits-Proven-Build-Break/dp/0735211299 • 8 Great Chess Apps for Beginners and Grand Masters: https://www.wired.com/story/best-chess-apps/ • Pontera: https://pontera.com/ Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. Lenny may be an investor in the companies discussed.

Lenny RachitskyhostUri Levineguest
Jun 8, 20241h 22mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Unicorn founder Uri Levine: Build startups by worshiping real problems

  1. Uri Levine, co-founder of Waze and multiple other startups, argues that enduring startup success comes from "falling in love with the problem, not the solution." He explains how to validate problems, navigate the messy path to product-market fit, and stay focused on one phase of the journey at a time. Uri shares tactical frameworks for hiring and firing, talking to users, and structuring fundraising pitches that resonate with investors. Throughout, he emphasizes iteration, simplicity, and the courage to make hard decisions quickly—especially when it comes to people.

IDEAS WORTH REMEMBERING

5 ideas

Start with a real, meaningful problem—and validate it with strangers.

Levine insists every startup should begin with a problem big enough that the world is clearly better if it’s solved. Talk to at least 20–100 people you don’t know; if they argue with your framing or urgently rephrase the problem in their own words, you’re onto something—if they just say, “I know someone like that,” it’s probably not real enough.

You must personally be in love with the problem to survive the journey.

The startup road is long, hard, and failure-heavy, so opportunistic ideas without deep founder passion rarely endure. Your job is not only to love the problem yourself, but to get employees, customers, and investors to fall in love with it and follow you through years of iteration.

Treat product-market fit as a long, iterative, failure-heavy search measured by retention.

Most of a startup’s early years are spent trying and discarding approaches until users keep coming back. For high-frequency products, Levine looks for 30–50% three-month retention or clear behavior like users coming back three or four times—if they don’t return, you’re not yet creating value.

Focus on one phase at a time: PMF, then growth, then business model (or vice versa).

Each stage—finding product-market fit, figuring out growth, and nailing the business model—requires different org focus and resource allocation. Trying to solve everything at once (“all over the place” phase) spreads you thin; instead, align the whole company on the single main thing appropriate to your current stage.

Make people decisions fast: use a 30-day hiring test and fire decisively.

Levine’s rule: 30 days after hiring, ask, “Knowing what I know now, would I hire this person again?” If the answer is no, fire them immediately; otherwise, tell them they’re exceeding expectations and give more equity. Avoiding hard calls causes top performers to leave and makes success nearly impossible in a small company.

WORDS WORTH SAVING

5 quotes

Fall in love with the problem. And then actually what you're trying to do is engage everyone else to fall in love with the same problem.

Uri Levine

If you're afraid to fail, then in reality you already failed because you're not going to try.

Uri Levine

Every time that you hire someone new, mark your calendars for 30 days down the road and ask yourself one question: 'Knowing what I know today, would I hire this person?' If the answer is no, fire them immediately.

Uri Levine

Most people are missing the most important slide of their presentation. It's the first slide. This slide is going to be presented for the longest period of time. This is the place that you're gonna put your strongest point.

Uri Levine

If you start your story with 'our company is…', you focus on your solution. If your story starts with 'the problem we are solving is…', you focus on the problem. If your story starts with 'the value we create for you is…', you focus on the user.

Uri Levine

Falling in love with the problem versus the solutionValidating startup ideas and assessing problem sizeProduct-market fit, retention, and iterative failureCompany-building phases and maintaining ruthless focusHiring, firing, and making hard people decisionsFundraising strategy, storytelling, and pitch structureUnderstanding and observing users to drive product design

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