Want your startup to be bought? Think before you build.
Start by pausing, not coding
Jem Walters knew he had an idea worth exploring, but he didn't start by writing software. Walters, who spent 23 years at Virgin Money and later served as CIO there, told colleagues the Snoop team spent six weeks mapping the problem before building anything. He said they ran a short, disciplined feasibility phase to test whether open banking could support a new kind of money-management app that actually nudged people to save.
That early assessment covered risks, partner needs, technology choices and customer acquisition routes. Walters decided the plan had "legs" only after the team had a clear view of what they'd need to deliver and how they'd reach users. Don't rush into code on day one — take time to check whether the idea can actually sustain a business before you burn cash on a full build.
Design for a customer "so what"
Walters and his co‑founders refused to build a dashboard that merely showed balances. They set out to answer a basic question: so what? If a user sees spending data, what should they do next? The Snoop team aimed to provide personalised suggestions — short, actionable nudges that point people to steps that could save them money.
They leveraged open banking to pull together financial data, then layered analysis on top to trigger those nudges. Walters told us they spent extra time turning raw account data into clear 'next steps' for users — that pivot made Snoop useful, not just interesting. So build things that push people to act, not just stare at numbers.
Assess partners, tech and go‑to‑market before you scale
Before sinking time and cash into a full product, Snoop's founders listed the partners they would need and the technical decisions they'd have to make. Walters emphasised mapping who would provide data, who would handle user authentication, and who would help reach customers.
He also weighed acquisition costs and regulatory steps.
The feasibility work wasn't a formality. It shaped the product's architecture and the commercial model. Walters said the process highlighted trade-offs — for example, which integrations were essential versus which could wait — and let the team build a roadmap that matched available resources.
Work with specialist agencies to move faster
Walters advised founders to bring outside agencies on board where it speeds learning. Bringing in experienced design, marketing or data teams lets a small startup access skills it doesn't have in-house. For Snoop, external partners helped accelerate user testing and brand work at early stages.
Bringing in experienced outside teams can save you from hiring costly specialists before product‑market fit — Walters said smart partners helped Snoop stay lean while they tested assumptions. That frees founders to keep the small internal team focused on the product work that really differentiates them.
Iterate from data, not ego
Snoop grew by releasing limited features, watching behaviour, then refining what worked. Walters said the team adopted a test-and-learn approach: roll out a capability, measure uptake and impact, then improve or kill it. The iterative model meant the company spent money on features that actually moved the needle.
Part of that discipline was refusing to cling to vanity metrics. Walters urged founders to set clear, outcome‑oriented goals for each experiment — like a measurable rise in people acting on a saving suggestion. If a feature didn't produce those outcomes, the team reworked it or reallocated effort elsewhere.
Why exits favour those who plan, partner and persist
The broader context matters. The Global Entrepreneurship Monitor notes that early-stage entrepreneurial activity remains strong, but many startups never reach the stage where an acquisition is possible. Walters's path shows a different pattern: careful testing, sensible partnerships and a focus on product outcomes can build a business an acquirer wants.
Walters co‑founded Snoop in 2019 and stayed focused on solving a clear problem for consumers. He later joined Vanquis when the banking group acquired Snoop in July 2023. He now serves as CTO at Vanquis and continues to push product-level improvements inside the bank.
Walters's path shows buyers tend to prize repeatable, demonstrable value over one-off cleverness. The founders who get bought usually have a defensible product idea, a clear route to customers, and a way to show commercial traction.
How founders can put the tips into practice
Run a short discovery sprint to prove your idea actually solves a real problem before you build features. Map the technical integrations and partner roles you'll need. That avoids committing to a costly build that doesn't match the market.
Design a product that drives action. If your feature only shows data, ask what you want the user to do next. Build features that nudge that behaviour and measure whether they work.
Lean on external agencies for specialist skills that would take months to hire. Choose partners with relevant experience and clear deliverables. Keep the core team's focus on what makes the product unique.
Adopt an iterative release cadence. Treat early features as experiments. Set outcome-based metrics and kill or scale features based on evidence. And keep a close eye on acquisition costs — if getting customers costs more than their lifetime value, you need to rethink the approach.
What the advice means for Australian founders
The principles Walters set out are practical for founders here: set aside time to test ideas, use partnerships to extend capability, and iterate based on measurable customer behaviour. They don't require huge budgets. They require discipline.
Australian startups that want to attract buyers should concentrate on resolving a clear customer problem and proving a repeatable route to revenue. Buyers look for predictable outcomes more than bells and whistles.
Where the path can be rocky
Not every idea survives the feasibility phase. Many ventures stall on customer acquisition or on integration challenges with financial data providers. Walters's approach helps reduce those risks, but it doesn't eliminate them. Founders still need resilience and a willingness to change course when the evidence points elsewhere.
Still, the pattern is encouraging. A cautious, evidence‑driven path doesn't preclude fast growth. It simply improves the odds that growth is sustainable and that a buyer sees value in the business.
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Snoop was co‑founded in 2019 and acquired by banking group Vanquis in July 2023.
This article was created with AI assistance.
