MBP Discussion on Lenny's Podcast

Jonathan Lowenhar on his adaptation and application of the Magic Box Paradigm

If you haven’t already - get the second edition of the MBP here.

I stumbled on an exceedingly interesting discussion of the MBP this week!

If you’re on substack generally, and if you’re on this substack in particular, then you’ve heard of Lenny’s Newsletter - one of the biggest substacks of them all. So it goes with out saying that it was great to see the MBP discussed on this platform.

Jonathan Lowenhar founder of Enjoy the Work gives his take on how his team adapts and applies the Magic Box Paradigm in their work with startups. It’s an interesting variation on the themes we discuss on MBP.co. I particularly enjoyed the success stories Lowenhar shares.

A few things I found particularly interesting from the conversation:

Inversion: Lowenhar opens by describing the Magic Box Paradigm as an “inversion” of the orthodoxy and “utterly counter to most of the advice founders have heard.” Yep!

Fantasy: Lowenhar frames the “big idea” as a “fantasy” - what I like about this framing is that it speaks to the criticality of imagination. In the MBP book and on this substack I tend to be very technical in how to spark and construct the partner big idea (“PBI”). What can be lost in approach is the equally important need for passion and creativity in the big idea process: fantasy.

Competition: The MBP speaks a great deal about the role competitive dynamics have in these conversations, and in the forming of big ideas. Lowenhar astutely warns founders to handle competition and competitive dynamics with care (both in terms of sparking urgency, and I would add also in terms of valuation/negotiation). For more on this read the MBP.co post on startup M&A bidding wars.

TLM: Lowenhar has a great discussion on shifting the conversation with a potential strategic partner from you as a standalone company, to what you can accomplish together. Essentially the power of the Two Line Model - even if they call you crazy - you still need to put it out there! Shift the framework of the conversation for your math to their math. As I say in the MBP book, your valuation is the present value of your contribution to their future strategy.

Here is a link to the section of the interview where they discuss the MBP (and the rest of the podcast is great also). Minute 25:25 in the full podcast if you jump to the start of the podcast.

If you’re still here, a couple other recent mentions of the MBP that also popped up on my radar:

Mention in Forbes about how the founders of Jemi leveraged the MBP.

#6 on the the list of 8 books every SaaS founder should read.

Lastly, an MBP.co programming note - going to publish a big Hot Take next week where we look at four pieces on startup M&A from a well known venture firm, break them down, and then leverage them to create a 2025 action plan! Stay tuned!