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Uri Levine (Waze co-founder, serial entrepreneur)16 February 2025

A founder’s guide to crisis management

5Frameworks
15Insights

Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Hot Take· 2

Hot Take35:30

Luck Is Opportunity Meets Readiness

Uri credits luck as central to startup success, citing developer Larry Silverstein who called his career 85% luck and joked he'd swap his 15% skill for more luck. Uri reframes luck as opportunity meeting readiness: opportunity isn't always in your control, but readiness is.

  • Silverstein attributed his success to 85% luck and 15% skill
  • Asked what he'd change, he said he'd replace the skill with more luck
  • Uri defines luck as opportunity meets readiness
  • Opportunity isn't always in your control, but readiness is up to you

I'm going to replace the 15% skills with additional 15% luck.

Uri Levine · 36:00

I will define luck as opportunity meets readiness. Readiness is up to you.

Uri Levine · 36:00
#luck#mindset#success
Hot Take1:11:30

If You'd Start Today, Change Today

Uri offers a question to apply beyond crises: knowing what you know today, would you do something different? If yes, change now rather than waiting for the next company, relationship, or life. He extends it to careers: if you can't fix an unhappy job within three months, leave, because quitting means firing your own boss.

  • Ask: knowing what I know today, would I do something different? If yes, do it today
  • Today is the first day of the rest of your life; don't wait for the next one
  • If someone else acts on it first, they'll compete you out of business
  • For an unhappy job: try to change it for 3 months, and if you can't, leave
  • Quitting your job means firing your own boss

today is the first day of the rest of your life.

Uri Levine · 1:12:00

You fire your own job boss. That's what it means.

Uri Levine · 1:13:00
#mindset#decision-making#career#reinvention

Explainer· 1

Explainer10:30

The Two Types of Crisis Every Founder Faces

Uri defines a crisis as something significant you already had suddenly disappearing. There are two abstract types: a cash crisis (a big customer, revenue, or investor vanishes) and a loss of product-market fit (regulation, competition, or a market shift makes your product irrelevant). He stresses that industry-wide pain is irrelevant to you: your problem is your problem.

  • A crisis = something significant you already had suddenly disappears
  • Cash crisis: funding, revenue, or a major customer disappears
  • Product-market-fit crisis: your product becomes irrelevant and you must go back to square one
  • The rest of the world suffering the same problem doesn't help you at all

So your problem is your problem. That's it.

Uri Levine · 10:30

I will define a crisis as something that you already had that is significant disappears.

Uri Levine · 10:30
#crisis#cash#product-market-fit#founders

Story· 4

Story08:30

How COVID Killed OrderChat Overnight

Uri describes OrderChat, one of the first AI chat products (2020), which let people book restaurant reservations by chat without any restaurant-side integration. It was very successful in Israel until COVID shut every restaurant down, erasing all reservations. Without funding to pivot, the company had to close.

  • OrderChat was an AI reservations chat that needed no restaurant integration, so it could cover all restaurants fast
  • It was very successful in Israel before COVID
  • COVID closed restaurants, eliminating the product's entire use case
  • The company lacked funding to pivot into something new and shut down

And that turned out to be pretty successful, and then COVID hit.

Uri Levine · 09:00

What happened to that was COVID.

Uri Levine · 09:30
#covid#startups#product-market-fit#shutdown
Story15:30

How a Regulator Killed Fivo in One Day

Uri's startup Fivo let Israelis file tax returns in under three minutes, growing the filing market 25% in a year by enabling non-mandatory filers. Because it increased the load on the tax system, the Israeli tax authority shut them down overnight. Near break-even and lacking runway to fight the regulator, Uri lost product-market fit instantly and resolved never to build on regulation again.

  • Fivo let people file tax returns in under 3 minutes when filing is not mandatory in Israel
  • It grew the size of the filing market by 25% in one year
  • The tax authority shut it down overnight because it increased system load
  • Fighting a regulator needs time and funding Fivo didn't have
  • Uri decided personally never to rely on a regulator's permission again

change in the regulation and we lost product market fit overnight.

Uri Levine · 17:00

I don't want to rely on a regulator to to allow me or not allow me to do what I want to do.

Uri Levine · 18:00
#regulation#product-market-fit#shutdown#taxes
Story19:30

How Waze Survived Google's Free Navigation

When Google announced free turn-by-turn navigation in 2010, the entire industry told Waze it was doomed and investors turned their backs the night before a key Khosla Ventures meeting. Waze survived because its use case was different: daily commuters who open the app twice a day, versus Google Maps used only occasionally. Ironically, a surprised Microsoft, lacking its own maps, ended up investing.

  • Google's 2010 free turn-by-turn navigation blindsided the industry and Waze
  • Investors abandoned Waze right before an all-partners Khosla Ventures meeting
  • Waze's edge was a different use case: daily commuters using it twice a day
  • Google Maps is used 'when I need it'; Waze is used every day
  • Microsoft, caught without its own maps, invested in Waze unexpectedly

everyone in the industry told us that we are doomed, right?

Uri Levine · 21:00

If I ask them how often they use Google Maps, they will tell me, when I need it.

Uri Levine · 22:00
#waze#competition#fundraising#product-market-fit
Story30:00

Surviving COVID With a Pay-to-Play Down Round

WeSki, the 'booking.com of ski vacations,' expected its first profitable year when COVID shut down European skiing, turning a few cancellations per day into hundreds. With strategic investors from the travel industry too consumed by their own crises to help, WeSki forced a pay-to-play down round, resized lean, and raised just enough to survive two seasons. It emerged profitable.

  • COVID hit in what was supposed to be WeSki's first profitable year, so cash reserves were thin
  • Travel-industry strategic investors were busy with their own crises and wouldn't help
  • A pay-to-play down round forces new capital at the expense of non-participating existing investors
  • The company resized very lean and raised just enough to survive two seasons
  • It used COVID downtime to improve the product and came out profitable

the last thing on their list that they care about is a startup that they invested at.

Uri Levine · 32:30

A pay to play is actually sort of forcing new investors at the expense of the existing one, right?

Uri Levine · 33:30
#covid#fundraising#down-round#travel

Takeaway· 8

Takeaway12:00

Product-Market Fit Has Only One Metric: Retention

Uri argues product-market fit is simple to measure with a single metric: retention. If you create value, customers come back; if they don't come back, you aren't creating value. He notes no company ever survived without figuring out product-market fit.

  • Product-market fit has exactly one metric: retention
  • If customers come back, you're creating value
  • If they don't come back, you're not creating value
  • Companies that never found product-market fit simply died

product market fit in general have only one metric, only one metric, retention.

Uri Levine · 12:00

If they are not coming back, that means that you are not creating value.

Uri Levine · 12:30
#product-market-fit#retention#metrics
Takeaway37:00

It's Not the Founder's Fault, It's Their Responsibility

Uri reframes the idea that failure is 'the founder's fault' as responsibility instead. Even when rising interest rates or an industry-wide shock is out of your control, you have only one company and must make it succeed. Blaming external forces won't help; assuming responsibility means you control your own destiny and raise your odds of success.

  • Prefer 'responsibility' over 'fault' for outcomes
  • External, industry-wide problems are no excuse: you have only one company
  • Blaming outside forces afterward won't make you successful
  • Assuming responsibility means controlling your own destiny and increasing success odds

I wouldn't say fault. I would say responsibility.

Uri Levine · 37:00

You have only one company. You need to make sure that this company is successful.

Uri Levine · 37:30
#leadership#responsibility#mindset#founders
Takeaway38:30

Never Give Up (and Decide With Conviction)

Uri names 'never give up' the single most important behavior of a successful startup CEO, paired with making decisions with conviction so the team will follow. He allows only two valid reasons to quit: the mission is wrong (the problem disappeared), or the team is wrong and you can't fix it (e.g. toxic investors you can't remove).

  • Never giving up is the most important behavior of a successful startup CEO
  • Decisions must be made with conviction or the team won't follow
  • Valid reason to quit #1: the mission is wrong because the problem disappeared
  • Valid reason to quit #2: the team is wrong and you can't change it (e.g. toxic investors)

never give up is um is the most important behavior of successful CEOs of startup.

Uri Levine · 39:30

you need to make them with conviction because if you don't make them with conviction, then what will happen is that the team is not…

Uri Levine · 40:00
#leadership#resilience#decision-making#founders
Takeaway43:30

The Only Way a Startup Dies Is Running Out of Money

Uri states plainly that the sole way a startup dies is running out of cash, just like any company that can't pay its bills. This reframes crisis management as, above all, the discipline of not running out of money.

  • Running out of money is the only way a startup dies
  • All companies die the same way: they can't pay their bills
  • Most crisis tactics are ultimately ways to avoid running out of money

That's the only way that they die.

Uri Levine · 43:30

all the companies in the world, right? They are unable to pay their bills and therefore they die.

Uri Levine · 44:00
#cash#runway#survival
Takeaway44:00

When You Can't Pay People, Give Them More Equity

When cash runs short, Uri has diluted all shareholders to give employees roughly five times more equity, asking them to trust the recovery so everyone wins if it works. He frames staying with your team through unpaid months as true leadership, built beforehand through transparency and recognition, because your team is what delivers success.

  • Dilute all shareholders to grant employees far more equity when cash is short
  • Ask the team to trust the cause and the recovery: everyone wins if it works
  • True leadership is telling people to stay even through months you may not be able to pay
  • Leadership is built before a crisis via transparency, recognition, and prioritizing the team

You don't know that, but this is true leadership.

Uri Levine · 45:00

you're going to be successful if your team delivers.

Uri Levine · 46:00
#team#equity#leadership#retention
Takeaway46:30

Don't Sugarcoat: Radical Transparency in a Crisis

Uri advises total transparency during a crisis because everyone already knows one is happening and hiding information destroys trust. Share the essence without sugarcoating (e.g. 'the investors are all saying no'), keep key company metrics visible in the office at all times, and give specific numbers when people ask.

  • Hiding information during a crisis makes people leave and destroys trust
  • Everyone already knows there's a crisis, so this is when they most expect your leadership
  • Don't sugarcoat: share the essence, not every investor email
  • Display key metrics in the office so drops are already visible; give specific numbers when asked

So number one, don't sugarcoat.

Uri Levine · 48:00

if the fact that it's ugly, if you don't tell that it's ugly, it's still ugly.

Uri Levine · 48:30
#transparency#leadership#communication#team
Takeaway50:00

Why Acting Fast Doubles Your Runway

Uri explains the math behind acting immediately in a cash crisis: cut burn 50% today and six months of runway becomes a year. Wait three months and the same cut leaves only nine months total. If you decide today you need 12 months and don't act today, you can never get to 12 months, so the only moment to choose is now.

  • Cutting burn 50% today turns 6 months of runway into a full year
  • Waiting 3 months before the same cut leaves only 9 months total
  • If you need 12 months and don't act today, you'll never reach 12 months
  • Delay steadily removes options: the only time to choose is today

If you reduce burn by 50% today, then you simply increase your run rate to a year.

Uri Levine · 52:30

If you decided today that you need 12 months, and you don't act today, you will never have 12 months.

Uri Levine · 53:00
#runway#burn-rate#cash#decision-making
Takeaway54:30

Cutting Cost Means Cutting People

Uri notes that 70-75% of a startup's budget is people, so real cost reduction always comes down to them. Options include layoffs, across-the-board salary cuts, or management giving up its own pay, and the right choice depends on how committed the organization feels. Cutting perks like office coffee saves nothing and only breeds dissatisfaction.

  • 70-75% of a startup budget is people; everything else is nickels and dimes
  • Layoffs are generally cleaner than cutting everyone's salary
  • A committed team may prefer shared salary cuts over layoffs
  • Management sacrificing its own salary demonstrates leadership
  • Cutting perks like coffee saves nothing and creates dissatisfaction

if you look at the startup and you look at the budget, 70% of the budget is people.

Uri Levine · 56:00

this is how you create dissatisfaction with the team

Uri Levine · 56:30
#cost-cutting#layoffs#team#budget