Kent Bennett, a partner at Bessemer, one of the top VC investment managers in the world, joined us for the concluding talk in our Astella Expert Network (AEN) series on marketplaces. Bessemer invests in startups in their early and growth stages and has more than $20 billion in assets under management

He is the author of The Bessemer Playbook for B2B Marketplaces and has contributеd to other highly significant published works including Bessеmer's Consumer Earthquakes and State of the Cloud. He has led investments in companies like Toast, Truebill, and Blue Apron.Managing the billing process accurately is not easy as providers might face hurdles in revenue cycle management. Moreover, Net Collection Rate below 95% shows that your practice is facing troubles in the billing process. To eliminate all these hurdles and maintain your NCR up to 96%, MedsIT Nexus medical billing and coding services are around the corner for you so that your practice does not have to face a loss

Kent said in his presentation that he does not have a particular concentration as an investor and instead examines a very broad variety of models and industries. For instance, he has done extensive research in a variety of fields, including infrastructure, deep technology, and consumption — he is well known for his success in this area — and more recently, he has concentrated on vertical SaaS, which for B2B Marketplaces may be included in this sector
We talked on the following topics:
1) The radical PMF concept, which is an important driver of a startup's billion-dollar growth;
– and
2) B2B markets
Here are some of my thoughts and observations on the information Kent provided us with:
PMF radical
Kent notices a pattern in some of Bessemer's best investments:
He refers to these chances as Radical PMF because they have a Product-Market Fit that is far superior to what is typically observed in the market
He claims that a useful analogy would be when, for instance
Fish start jumping into your boat when you are out fishing on a lake
In other words, the value proposal is so potent that it instantly converts, or converts at a very high proportion, when it is presented to potential clients. Customers will publicly promote the product in their social networks and groups in addition to desiring to purchase or utilise it. MedsDental billing and coding experts are highly proficient in processing claims for your dental practice. Moreover, our dental billing services are certified by HIPAA providing you an utmost experience in maintaining the privacy of the communication between you and your patients
As a result, organisations with a Radical PMF have essentially no cost of sales, and payback is almost rapid, which is obviously a prescription for maintaining growth

The risk Kent identified in firms with a Radical PMF is that the sales process hardly exists yet, simply because the platform has never required to perform any selling, according to his investing memoranda. Users proactively present themselves and spread word about the advantages of the product, so the founders don't even know where the leads are coming from. The extreme distinction of the product's advantage means that it sells by itself, and growth is the inevitable result
What are the requirements for a Radical PMF?
1) A top-notch founding team (Kent finds this to be pretty evident because he thinks all the teams he has backed are top-notch)
2) A remarkable product that can be used to leverage new technology, behaviours, or business concepts, and is, in general, in accordance with some trend that has recently changed dramatically or is changing significantly
You could say that these founders are radically better than any incumbent at recognising chances for goods with these advantages because they cognitively recognise these massive waves of change and can see how to surf on them to develop their Radical PMF
These businesses may begin a journey to a US$100 million ARR in a few years after they identify their Radical PMF

Read More: MedsIT Nexus
Bessemer, The Centaur Report
These market waves, like any disruption, begin from the bottom up, much like the seismic signals caused by tectonic plate movement underground. Therefore, a thorough examination of these forces of change and knowledge of how to incorporate modern technologies into their businesses in this new environment would allow entrepreneurs who wish to ride the Radical PMF wave a "unfair advantage" in these industries are first and foremost requirements
These waves of transition can clearly be seen in the expansion of SaaS companies and cloud infrastructure tools. They can also be seen in the emergence of Uber and other services due to smartphones with geolocation chips, social networks, and e-commerce platforms
Astella believes that the "T-Cell" that also replicates itself for an organization's growth, which we refer to as the Atomic Growth Unit, is the most effective way to scale up. As such, it should be a catalyst for innovation and market transformation, and its construction is directly related to the founding team's strategic choices. For instance, what target market to select, the value proposition of the product, and what the growth model and growth machinery are
For dealing with these obstacles and making the best strategic decisions, the team, its experiences, and its "secrets" are crucial. Another crucial step is the construction of an initial structure before PMF is attained. This structure must be lean and concentrated so that it is possible to "ride the wave" and avoid falling off of it

Resources & References

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