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In today’s email:

• Why Founder-Market Fit is so important

• Vertical spotlight: Climate and energy software

• A few good links

Let’s get after it.

Why Founder-Market Fit is so important

Many aspiring entrepreneurs dive into business ventures without a clear understanding of the market they're entering. This lack of alignment between a founder's experience and their chosen market often leads to costly mistakes and business failures.

Imagine investing time, effort, and investors' money into a business only to realize you're in over your head. This scenario is common when founders lack direct experience or deep insights into their chosen market.

For instance, a successful B2B founder might flounder in the B2C space, as their skills and knowledge don't necessarily translate. The restaurant industry is a prime example: many enter it due to a love for food, overlooking the intricate challenges and high failure rates.

True founder-market fit means having a profound understanding of the market you're entering. It's about leveraging personal experiences and insights to identify unique opportunities and gaps.

Successful founders exemplify this, using their extensive industry knowledge to build rapidly growing businesses. In essence, aligning your expertise with your business venture isn't just advisable – it's essential for real success.

Key Takeaways:

• Founder-market fit is vital for business success, reducing the risk of failure.

• Lack of industry knowledge can lead to costly 'learning' at investors' expense.

• Success stories like DigitalOcean and GreatHorn highlight the power of market expertise.

• Entrepreneurs should critically assess their market understanding before launching a venture.

Read more from Startup Hacks

Vertical spotlight: Climate and energy software

The world is on the brink of a major energy shift, grappling with volatile energy crises and the urgent need for sustainable solutions. Traditional energy sources are proving inadequate and harmful, demanding a significant transformation.

The stakes are high as we face intermittent blackouts and energy security emergencies globally. The transition to green energy isn't just a choice; it's an existential necessity. Historically, major energy shifts have reshaped industries and economies, and we're now at the cusp of another such transformative era.

This revolution is not just about replacing old energy sources but about smartly integrating technology to optimize the use of renewable energy. Bessemer Venture Partners is now championing software solutions that are crucial in this green transition.

The renewable energy market, already valued at $988.26B and growing, is ripe with opportunities for innovation in areas like solar, wind, and electric vehicles (EVs). Key drivers include the plummeting costs of solar and wind energy, evolving business models, digitization, and supportive legislation like the U.S.'s Inflation Reduction Act and Europe's Fit for 55 package.

Key Takeaways:

• The renewable energy market is expanding rapidly, with a projected value of $1,912.12B by 2030.

• Software solutions are key in optimizing the renewable energy value chain, from solar panel installation to EV charging systems.

• The transition to green energy is not just an environmental imperative but a significant economic opportunity, promising a future of cleaner, more affordable, and more accessible energy for all.

Read more from Bessemer Venture Partners

A few good links

• Multi-Product, Multiple Choices: How to Determine Product Priorities

• Robert F. Smith (Vista Equity Partners) Operating Manual

• Picking The Right Market To Go After

• Why the Blue Ocean Strategy Isn’t a Good Thing