Glossary / product

MVP vs Prototype vs POC

product

Quick Definition

POC (Proof of Concept) proves idea is technically possible. Prototype demonstrates how product works (demo). MVP is simplest version real customers pay for. Build in order: POC → Prototype → MVP → Full Product.

Detailed Explanation

Understanding the progression: POC (Proof of Concept): "Can we build this?" Technical feasibility test, usually throwaway code, not customer-facing. Example: "Can we build recommendation engine using ML?" Build basic version, test accuracy, confirm it's possible. Time: 1-2 weeks. Cost: ₹10-50K. Prototype: "How will it work?" Demonstrates user flow and design, clickable mockup or video demo, not production-ready. Example: Figma design with screens linked, or 3-minute explainer video. Dropbox MVP was video prototype—validated demand without building product. Time: 2-4 weeks. Cost: ₹50K-₹2L. MVP (Minimum Viable Product): "Will customers pay?" Simplest working version solving core problem, real users can use and pay for, production-ready but minimal features. Example: Airbnb MVP—simple listing page, booking form, manual payment processing. Launched to real customers. Time: 4-12 weeks. Cost: ₹2-10L. Full Product: "How do we scale?" Complete feature set for mass market, polished UX, scalable infrastructure, enterprise-ready. Time: 6-24 months. Cost: ₹50L-₹5 crore+. When to use each: POC: Unproven technology (AR/VR, AI, blockchain). Need technical validation before investing. Prototype: Complex UX, need stakeholder buy-in, or raising pre-seed funding. MVP: Proven technology, ready to test market demand. Full product: After MVP validates demand, have funding, scaling. Mistake: Skipping MVP, jumping to full product. ₹50L invested, 12 months, launch to crickets—nobody wanted it. Should have launched ₹2L MVP in 2 months, validated demand, then built full version.

Formula

Build Journey: POC (feasibility) → Prototype (design) → MVP (demand) → Full Product (scale). Each validates next step.

Real-World Examples

Dropbox prototype

Drew Houston made 3-minute video showing file sync (product didn't exist). Got 75,000 signups. Validated demand with ₹50K prototype before writing code. Classic prototype approach.

Zappos MVP

Founder photographed local store shoes, posted online. Orders came in, he bought retail and shipped. ₹0 investment MVP proved people buy shoes online before building inventory system.

Wrong order

Team spent ₹80L building full product (18 months, 50 features). Launched, got 20 users. Should have built ₹2L MVP first—would have realized no demand after 2 months.

Why It Matters for Your Startup

Building in stages de-risks startup. POC: Proves technical feasibility (₹50K investment). Prototype: Tests design/UX with users (₹2L investment). MVP: Validates market demand (₹5L investment). Full product: Scales validated business (₹50L+ investment). Skipping stages = huge waste if idea fails. Example: Invest ₹5L in MVP, discover no PMF, pivot → lost ₹5L. Invest ₹50L in full product, discover no PMF → company dies.

Common Mistakes

  • Confusing MVP with prototype (MVP must be functional, customers pay)
  • Building full product without MVP (₹50L+ wasted if no market demand)
  • MVP has too many features (should take 4-8 weeks, not 6 months)
  • POC with production code (POC is throwaway—don't try to make it production-ready)
  • Not validating with real customers (prototype should be tested with 20+ users)

Frequently Asked Questions

Do I need all three (POC, Prototype, MVP)?

No. Skip POC if technology proven (standard web/mobile app). Skip prototype if UX is simple (CRUD app). Always build MVP—only way to validate market demand.

How long should MVP take?

4-8 weeks typical for SaaS. If taking >3 months, you're building too much. Remember: Minimum Viable, not Minimum Delightful or Minimum Complete.

What comes after MVP?

Get first 100 customers, iterate based on feedback, find PMF (40%+ retention). THEN build full product. Never build full product before PMF—waste of money.

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MVP vs Prototype vs POC - Definition, Examples & Formula | StartupIdeasDB Glossary | startupideasdb.com