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Rapidly test and validate any startup idea with the 2-day Foundation Sprint (from the creators of the Design Sprint) | Jake Knapp & John Zeratsky (Character Capital)

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Jul 13, 2025

Jake Knapp and John Zeratsky, co-creators of the Design Sprint and co-founders of Character Capital, share their expertise in this conversation about the Foundation Sprint. They discuss the importance of validating startup ideas quickly, outlining a two-day process that replaces months of work. Key topics include the 2x2 differentiation framework, essential questions founders must address, and the ‘note and vote’ technique for avoiding groupthink. Their insights on product differentiation and strategic decision-making pave the way for startup success in a competitive landscape.

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Episode notes

00:00 / 00:00

Latchit’s artisan-focused startup story

Latchit founders, ex-Substack engineers, targeted artisans struggling to market online.
They leveraged community network features to differentiate from commoditized platforms like Etsy.

00:00 / 00:00

Use note and vote technique

Use the "note and vote" technique: have team members silently write down their answers before voting.
Designate one decision-maker to finalize key choices and avoid groupthink.

00:00 / 00:00

Differentiation drives success

Differentiation is the heart of product success and defines your unique promise to customers.
Products must be positioned to stand out clearly from competitors to capture customer attention and trial.

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Foundation Sprint: Unlocking Startup Potential

05:43 • 25min

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Crafting a Unique Product Promise

30:15 • 10min

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Navigating Price Competition in Tech and the AI Advantage

40:33 • 2min

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Navigating Differentiation and Pricing Strategies for Startups

42:51 • 5min

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Designing Mellow: Navigating Startup Challenges

47:57 • 22min

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Differentiation in Startup Success

01:10:20 • 27min

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Empowering Entrepreneurs with a Foundation Sprint Template

01:37:11 • 4min

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Make Time

How to Focus on What Matters Every Day

Jake Knapp

John Zeratsky

In 'Make Time', Jake Knapp and John Zeratsky offer a framework to help individuals manage their time more effectively. The book introduces the concept of the 'Busy Bandwagon' and 'Infinity Pools' (endless digital content) that consume our time. It proposes a four-step daily process: Highlight (identify the most important task), Laser (focus on that task), Energize (maintain energy levels), and Reflect (evaluate and improve the process). The authors provide over 80 actionable tips to help readers implement these steps and make meaningful time for what truly matters.

Sprint

How to Solve Big Problems and Test New Ideas in Just Five Days

John Zeratsky

Jake Knapp

Braden Kowitz

This book introduces the Design Sprint, a five-day process developed by Jake Knapp at Google and refined with John Zeratsky and Braden Kowitz at Google Ventures. The method helps teams answer critical business questions by moving from idea to prototype to decision within a short period. It is applicable to teams of any size, from small startups to Fortune 100 companies, and covers various sectors such as healthcare, finance, and e-commerce. The book provides a step-by-step framework for rapid innovation, including team structuring, customer-centric mapping, and rapid prototyping and testing.

Jake Knapp and John Zeratsky are the co-creators of the Design Sprint (the famous five-day product innovation process) and authors of the bestselling book Sprint. After decades of working with over 300 startups in the earliest stages, they discovered that most startups fail not because they can’t build, but because they build the wrong thing. The very beginning of a startup is your highest-leverage moment, and most teams waste months or years by skipping a few critical early questions. Jake and John developed the Foundation Sprint to help startups validate ideas and compress months of work into just two days.

What you’ll learn:

1. The step-by-step Foundation Sprint process that compresses three or four months of validation into two days—including templates you can use immediately

2. Why differentiation is the #1 predictor of startup success (with the 2x2 framework that you can use with your team)

3. The three fundamental questions every founder should answer before writing a line of code

4. The “note and vote” technique that eliminates groupthink and gets honest answers from your colleagues

5. The seven “magic lenses” for choosing between multiple product ideas

6. The biggest mistake engineers make when building with AI tools

7. The paradox of speed: why “building nothing first” can get you to product-market fit faster

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Brought to you by:

Brex—The banking solution for startups: https://www.brex.com/product/business-account?ref_code=bmk_dp_brand1H25_ln_new_fs

Paragon—Ship every SaaS integration your customers want: https://www.useparagon.com/lenny

Coda—The all-in-one collaborative workspace: https://coda.io/lenny

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Transcript: https://www.lennysnewsletter.com/p/the-foundation-sprint-jake-knapp-and-john-zeratsky

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My biggest takeaways (for paid newsletter subscribers):

https://www.lennysnewsletter.com/i/167485876/my-biggest-takeaways-from-this-conversation

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Where to find Jake Knapp:

• X: https://twitter.com/jakek

• LinkedIn: https://www.linkedin.com/in/jake-knapp/

• Website: https://jakeknapp.com/

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Where to find John Zeratsky:

• X: https://twitter.com/jazer

• LinkedIn: https://www.linkedin.com/in/johnzeratsky/

• Website: https://johnzeratsky.com/

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In this episode, we cover:

(00:00) Introduction to Jake Knapp and John Zeratsky

(04:41) Origins of the Design Sprint

(11:06) The Foundation Sprint process

(14:40) Phase one: The basics

(16:57) Case study: Latchet

(28:50) Phase two: Differentiation

(36:24) The importance of differentiation

(40:15) Thoughts on price differentiation

(43:37) Case study: Mellow

(46:04) Custom differentiators

(49:30) The mini manifesto

(52:02) Phase three: Approach to the project

(54:50) Magic lenses activity

(01:02:39) Prototyping and testing

(01:10:00) Real-world examples and success stories

(01:15:15) Motivation behind The Foundation Sprint

(01:17:15) The outcome of the sprint: The founding hypothesis

(01:19:28) The Design Sprint

(01:28:19) The role of AI in prototyping

(01:36:50) Final thoughts and resources

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Referenced:

• Introducing the Foundation Sprint: From the creators of the Design Sprint: https://www.lennysnewsletter.com/p/introducing-the-foundation-sprint

• Making time for what matters | Jake Knapp and John Zeratsky (authors of Sprint and Make Time, co-founders of Character Capital): https://www.lennysnewsletter.com/p/making-time-for-what-matters-jake

• Eli Blee-Goldman on LinkedIn: https://www.linkedin.com/in/eli-blee-goldman/

• Character Capital: https://www.character.vc/

• Character Labs: https://www.character.vc/labs

• Etsy: https://www.etsy.com/

• Shopify: https://www.shopify.com/

• Naming expert shares the process behind creating billion-dollar brand names like Azure, Vercel, Windsurf, Sonos, Blackberry, and Impossible Burger | David Placek (Lexicon Branding): https://www.lennysnewsletter.com/p/naming-expert-david-placek

• Sonos: https://www.sonos.com/

• Vercel: https://vercel.com/

• Windsurf: https://windsurf.com/

• April Dunford on product positioning, segmentation, and optimizing your sales process: https://www.lennysnewsletter.com/p/april-dunford-on-product-positioning

• Positioning: https://www.lennysnewsletter.com/p/positioning

• 10 things we know to be true: https://about.google/company-info/philosophy/

• Gandalf: https://en.wikipedia.org/wiki/Gandalf

• Frodo: https://en.wikipedia.org/wiki/Frodo_Baggins

• Mordor: https://en.wikipedia.org/wiki/Mordor

• 35 years of product design wisdom from Apple, Disney, Pinterest, and beyond | Bob Baxley: https://www.lennysnewsletter.com/p/35-years-of-product-design-wisdom-bob-baxley

• The Primal Mark: How the Beginning Shapes the End in the Development of Creative Ideas: https://www.gsb.stanford.edu/faculty-research/publications/primal-mark-how-beginning-shapes-end-development-creative-ideas

• Base44: https://base44.com/

• Solo founder, $80M exit, 6 months: The Base44 bootstrapped startup success story | Maor Shlomo: https://www.lennysnewsletter.com/p/the-base44-bootstrapped-startup-success-story-maor-shlomo

• Google Meet: https://meet.google.com/

• Blue Bottle Coffee: https://bluebottlecoffee.com

• Reclaim: https://reclaim.ai/

• The official Foundation Sprint + Design Sprint template: https://www.character.vc/miro-template

• Rippling: https://www.rippling.com/

• Latchet: https://latchet.com/

• Mellow: http://getmellow.com/

• AxionOrbital: https://axionorbital.space/

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Recommended books:

• Sprint: How to Solve Big Problems and Test New Ideas in Just Five Days: https://www.amazon.com/Sprint-audiobook/dp/B019R2DQIY

• Make Time: How to Focus on What Matters Every Day: https://www.amazon.com/Make-Time-Focus-Matters-Every/dp/0525572422

• Click: How to Make What People Want: https://www.amazon.com/Click-Make-What-People-Want/dp/1668072114

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

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Lenny may be an investor in the companies discussed.

To hear more, visit www.lennysnewsletter.com

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