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

Uri Levine stresses that entrepreneurship is about value creation, and the simplest way to do this is by solving a problem. He advises founders to identify a significant problem that bothers them, validate it by speaking with many people beyond their immediate circle, and only then begin building a solution. This approach ensures that the eventual product addresses a real need and avoids building something nobody cares about. The problem serves as a 'north star,' guiding the journey and making the company's story more compelling to customers and investors alike.

Uri describes the startup journey as a multi-dimensional path characterized by a roller coaster of ups and downs, a series of failures, and a long duration. He highlights that feeling afraid to fail is akin to having already failed, advocating for a 'fail fast' approach to allow for more attempts and increase the likelihood of success. The journey is often much longer than anticipated, especially in achieving 'product-market fit', which he defines as creating genuine value for customers, measured by retention.

Uri shares Waze's journey to product-market fit. Initially successful in Israel, Waze struggled globally until it undertook numerous iterations based on user feedback. He explains how Waze's crowdsourced mapping model worked well in some regions but failed in others, like Japan, due to different address systems. This experience reinforced the importance of listening to users and continuously iterating until the product was 'good enough' for various markets. He also discusses how Waze discovered that creating 'certainty' (knowing arrival times) was a higher value for users than just 'saving time' from traffic, particularly in the US market.

Levine outlines distinct phases in a startup's life: the 'all over the place' ideation phase, followed by phases focused on product-market fit, growth, and business model. He emphasizes the importance of focusing on one primary objective per phase. Initially, the focus should be solely on achieving product-market fit. Once achieved, the company shifts its focus to either growth (if it has high-frequency use and potential for word-of-mouth like Waze) or perfecting the business model (if user acquisition is more challenging). He warns against trying to do everything at once, as 'focus is not about what we're doing, it's about what we are not doing.'

Uri shares tactical advice for fundraising, noting that it's a 'rollercoaster journey in the dark' due to its unpredictable nature and low success rate (around 1% for initial investments). He advises founders to start and end their pitch with their strongest point, given that investors often make quick initial assessments. He also stresses the importance of telling a compelling story that creates emotional engagement rather than just presenting facts, as investors, like users, connect with a problem they understand. He humorously recounts a story about a co-founder who successfully used a detailed, albeit fictional, personal anecdote to make his pitch more authentic.

Levine believes firing is a harder, yet more crucial decision than hiring. He suggests that founders mark their calendars for 30 days after hiring someone and ask themselves, 'Knowing what I know today, would I hire this person?' If the answer is no, they should fire them immediately. Failing to make such hard decisions can lead to the departure of top performers and jeopardize the startup's success. This principle extends beyond hiring to all aspects of life, encouraging constant re-evaluation and willingness to change course if current paths are no longer serving their purpose.

Uri shares an anecdote with Steve Wozniak about how users interact with products in unexpected ways. He underlines that founders often build products for themselves, failing to recognize that other users may have different needs and behaviors. To truly understand users, he recommends observing how new users interact with the product and asking 'why' if their behavior deviates from expectations. He categorizes users into innovators, early adopters, and the critical early majority. Winning over the early majority requires simplifying the product experience, as they are often afraid of change and seek ease of use. It's crucial to listen to and understand the 'why' behind user behavior, especially those who abandon the product, as this feedback is vital for improvement.

Uri emphasizes the importance of not being afraid to fail. He believes that each failure and subsequent recovery makes an individual stronger. He extends this advice to parenting, encouraging parents to teach their children to fail, as this fosters resilience and encourages them to step out of their comfort zones to discover what makes them happy. He cites the Japanese saying, 'Fall seven times and get up eight,' to illustrate this philosophy.

Uri acknowledges that he will likely never stop starting companies, driven by his addiction to solving problems. He highlights current problems he’s passionate about, like helping people retire richer through financial planning, improving medical services with AI, and addressing mobility challenges. He points out that any area where things are done the same way as previous generations likely needs revisiting and offers opportunities for innovation. He encourages others to find problems they are passionate about solving for a fulfilling entrepreneurial journey.