Disrupting the Energy Market: Joe McDonald, Co-Founder and CEO of tem. Strategies for turning challenges into opportunities
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media.
Joe McDonald, co-founder and CEO of tem., a London-based clean energy company, recognised a critical flaw in the energy market and set out to change it. In this conversation, he shares the realities of building a startup in a resistant industry and emphasises the importance of resilience for entrepreneurs on their journey.
What inspired you to start your business?
"The idea for tem. came from a pretty frustrating realisation: the way energy transactions work is completely outdated. After spending years building and selling a renewable tech company, I started noticing that the real issue with the UK's energy market was the way energy is bought and sold, and that needed a complete overhaul.
That's why we launched tem. in 2021. We wanted to shake up the energy market and make renewable energy more accessible for everyone, not just big corporations with deep pockets. Our platform is designed to make transactions smarter, more affordable, and transparent for everyone involved - whether you're a business owner or a renewable energy generator. We're driven by this belief that everyone deserves a fair shot at tapping into clean energy and at a fair price, not just the privileged few. Most businesses don't have the financial resources to do what companies like Apple or Patagonia do when buying renewable energy directly. We're here to alleviate that."
What was your biggest challenge and how did you overcome it?
"I know I've been fortunate in terms of facing less challenges than others, but the energy market, particularly for startups, is not an easy ride. A few years ago, most VCs wouldn't even consider investing in an energy business because they saw it as too high-risk or too entrenched with established players. But we always believed in our vision from day one, and that's what kept us going.
When things get tough -and they do- I always go back to the core reason we started tem. in the first place. We're not here to make incremental changes; we're here to rethink how energy transactions work altogether. That belief keeps us grounded, no matter how many obstacles pop up.
Our offering sometimes sounds too good to be true. And honestly, that's not the worst problem to have. But it taps into a deeper issue: businesses have been burned by energy startups before. Bad experiences, startups going bust mid-contract—it's made a lot of businesses cautious, sticking with the big energy companies rather than exploring ways to unlock real value.
The energy system as we know it has been around for decades, and many businesses don't even realise there's an alternative to the traditional wholesale market. Reducing the friction to adopt our new way of doing things has been a focus since day one. But we know this isn't something we can change overnight. It takes investment in education, in product design, and in building brand trust. We're working every day to bring businesses on this journey with us and to truly revolutionise the energy sector together."
Related: The Power of Purpose-Driven Entrepreneurship
How did you secure your initial funding?
"Securing funding wasn't about rushing into it. After a few years of development and working closely with our early customers, we were confident about the value we were bringing to the table. By the time we launched the platform, we had already built strong momentum, and that made a huge difference when we approached investors.
Our backers saw the bigger picture - we weren't just tweaking the current system; we were aiming to transform the global energy market. We're talking about a trillion-dollar opportunity in renewable energy transactions, and that's what grabbed their attention. Atomico, one of our key investors, got what we were trying to do right away. They saw tem. as a company that could have a real, lasting impact, and that made all the difference in securing the support we needed."
How do you handle failure or setbacks?
"You can't go through this journey without hitting bumps along the way, and I've learned to embrace them as part of the process. When things don't go as planned, I always remind myself why we're doing this. Our mission is bigger than any setback, so it's important to keep that in mind.
Having a great team helps too. You can't do it alone, and I'm lucky to have co-founders and colleagues who share the same vision and resilience. We face challenges together, and that makes all the difference when things get tough."
What advice would you give to someone starting their own business?
"Stay true to your mission and surround yourself with people who believe in it as much as you do. Passion is great, but resilience is even more important. You'll face setbacks, and if you can't learn from failure, it's going to be hard to build something that truly lasts. Be ready for the long game and don't get distracted by short-term noise. It's about staying focused on what really matters."
How do you stay motivated during tough times?
"For me, motivation comes from the bigger picture. We're not just building a company - we're trying to change the way the energy market works, which is a pretty big deal. Knowing that what we're doing can have a real impact on the world keeps me going, even when things get tough. Plus, I'm motivated by the people I work with. When you've got a team that's as passionate and committed as you are, it's hard not to stay inspired."
Share your tips for achieving success.
"Success isn't just about hard work. It's about sticking with it when things get tough and being willing to adapt when the plan doesn't go as expected. Surround yourself with people who push you to be better, and never lose sight of why you started in the first place. It's easy to get caught up in day-to-day challenges, but always keep the long-term vision in mind. That's what keeps you on the right track."
