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Aug 20 • 13 mins
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MVP vs PoC vs Prototype: What’s the Difference?

When a startup begins shaping its product vision, one of the biggest challenges is deciding how to validate ideas before committing to full-scale development. Terms like MVP, PoC, and prototype are frequently used in product discussions, but they’re often misunderstood or even used interchangeably. For founders, consultants, and startup teams, this confusion can lead to wasted resources, wrong priorities, and missed opportunities.

So, what’s the real difference between MVP vs PoC vs prototype? When should you choose one over the other? And how do these approaches fit into early product planning?

In this article, we’ll take a deep dive into the three concepts, explore their roles in product development, compare them side by side, and help you decide which approach fits your startup journey.

What is a PoC (Proof of Concept)?

PoC definition and purpose

A Proof of Concept (PoC) is an experiment designed to verify whether a certain idea, technology, or assumption is feasible. The goal of a PoC isn’t to build a market-ready product but to answer one simple question: “Can this be done?”

Key Characteristics of a PoC

PoC from idea to validation

Purpose: Validate the technical feasibility of an idea.

Output: A working demonstration or experiment, not a full product.

Effort: Small team, minimal design, short timeframe.

Risk reduction: Helps avoid costly mistakes before investing in development.

Real-world example of a PoC

Imagine a startup wants to build an AI-powered language app that can translate speech in real time. Before designing the app or launching an MVP, the team would run a PoC to check if existing AI models and APIs can handle speech recognition and instant translation without major latency.

If the PoC shows technical feasibility, the startup can move to the next stage. If not, they pivot before wasting money.

What is a Prototype?

Prototype definition and purpose

A prototype is an early visual or interactive representation of a product idea. Unlike a PoC, a prototype doesn’t prove technical feasibility—it’s about showing how the product will look and feel.

Key Characteristics of a Prototype

Purpose: Explore user experience (UX) and design.

Output: Low-fidelity sketches or high-fidelity interactive mockups.

Audience: Founders, investors, product teams, and test users.

Effort: Design-focused, created with tools like Figma, Sketch, or InVision.

Example of using a prototype for product design

Suppose you’re developing a mobile payment app. Instead of writing code, you first create a clickable Figma prototype to visualize screens, flows, and interactions. You can then use this prototype in user interviews or investor pitches to gather feedback early on.

Prototypes save time by clarifying design assumptions and preventing expensive redesigns later.

What is an MVP (Minimum Viable Product)?

MVP definition and role in product development

The Minimum Viable Product (MVP) is a simplified but functional version of a product, released to real users for testing in the market. Unlike a PoC or prototype, an MVP is a working product with core features. Its main purpose is MVP validation—checking whether the market wants and needs the solution.

MVP validation: why it matters for startups

MVP

Launching an MVP allows teams to:

  • Adjust product direction based on user behavior.
  • Collect real feedback.
  • Avoid building unnecessary features.

Example of a successful MVP launch

Dropbox is one of the most cited MVP success stories. Instead of immediately building a complex file-syncing system, the founders created a simple demo video explaining the concept. The huge interest validated the market demand. Later, they launched an MVP version of Dropbox to early users and refined it based on real feedback.

This process illustrates how an MVP allows startups to validate assumptions in practice, not theory.

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MVP vs PoC vs Prototype: Key Differences Explained

Now that we’ve defined each concept, let’s explore the differences between PoC vs prototype vs MVP.

AspectProof of Concept (PoC)PrototypeMinimum Viable Product (MVP)
GoalProve technical feasibilityDemonstrate design & UXValidate product-market fit
Focus“Can we build it?”“How will it look & feel?”“Do users want it?”
AudienceInternal team, tech leads, investorsUsers, investors, design teamReal customers & early adopters
OutputWorking experiment or testClickable demo, visual mockupsFunctional but minimal product
CostLowModerateHigher (requires development)
Risk addressedTechnicalUsability & designMarket demand
When to useVery early stage, idea validationBefore MVP, for design testingAfter validation of feasibility & design
PoC vs prototype vs MVP

This table highlights why confusing these concepts can lead to mistakes. A startup that skips PoC may later face technical barriers. One that skips prototyping may invest in building features with poor usability. And one that skips an MVP may launch a full product only to discover no real demand.

How to Choose Between MVP, PoC, and Prototype

The decision between MVP vs PoC vs prototype depends on your current stage, resources, and goals.

  1. Choose PoC if:
    • You’re unsure whether the technology works.
    • You need to prove feasibility before pitching to investors.
    • Example: A blockchain startup testing whether cross-chain swaps are technically possible.
  2. Choose Prototype if:
    • You want to visualize your product for investors or stakeholders.
    • You need early user feedback on design and usability.
    • Example: A health-tech app showing user journey and dashboard layout without backend logic.
  3. Choose MVP if:
    • You’re ready to test your product with early adopters.
    • You want real-world data for MVP validation.
    • Example: Launching a simplified food delivery app that only supports one city.

The key is aligning your approach with your early product planning strategy. Startups that follow this progression: PoC → Prototype → MVP tend to reduce risks at each stage while ensuring faster time-to-market.

The Role of AI in MVP Development

In recent years, artificial intelligence has become a powerful tool in shaping MVPs. AI can help startups speed up validation by automating testing, analyzing user feedback, and even generating design alternatives.

For instance, many founders now explore how AI assists in customer segmentation or feature prioritization during the MVP stage. If you want to learn more about this intersection, check out our article on AI and MVP — it explains how artificial intelligence is reshaping early product strategies.

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Real-World Case Studies: PoC, Prototype, and MVP in Action

Dropbox – MVP validation with a simple demo

When Dropbox was first conceived, the idea of seamless cloud file synchronization seemed revolutionary. But instead of spending months building complex infrastructure, founder Drew Houston created a simple MVP: a short demo video showing how the product would work.

  • Result: Thousands of users signed up for early access, proving that there was real demand.
  • Lesson: Sometimes an MVP doesn’t even require full code—just enough functionality (or even a demo) to validate the market.

Uber – from prototype to MVP

uber

Uber’s journey began with a prototype called “UberCab.” The first version of the app was very basic—it only allowed users to request a black car in San Francisco.

  • Prototype phase: The app had limited functionality but provided enough UX flow to test the idea.
  • MVP phase: The early app was launched to real customers in San Francisco. Feedback from these first adopters guided Uber’s massive global scaling.
  • Lesson: By starting with a small-scale MVP, Uber validated user demand before expanding to multiple cities and ride types.

Airbnb – testing assumptions with a minimal MVP

In 2007, Airbnb founders couldn’t afford rent in San Francisco. They set up a basic website to rent out air mattresses in their apartment to conference attendees.

  • MVP: The first version wasn’t a polished platform—just a landing page with photos and a booking form.
  • Result: They got three paying customers. This tiny experiment validated that people were willing to pay to stay in someone else’s home.
  • Lesson: An MVP doesn’t need to be perfect—it just needs to test the core assumption.

Spotify – combining PoC and MVP for success

Spotify needed to prove two things before becoming a global music leader:

  1. PoC: Could they build a streaming technology that delivered music instantly, without buffering? The PoC proved it was technically possible.
  2. MVP: Once the tech was validated, they released a minimal product in Sweden, focusing only on desktop streaming with a limited catalog.
spotify -  combining PoC and MVP for success

Result: The MVP attracted enough traction and investor interest to secure funding and scale.

Lesson: Combining PoC validation with an MVP rollout can be a powerful formula for success.

Zappos – validating a business model with MVP

Before Zappos became a billion-dollar online shoe retailer, founder Nick Swinmurn tested the concept with a minimal MVP. He didn’t buy inventory upfront. Instead, he took photos of shoes in local stores, posted them online, and only purchased the shoes when someone ordered.

zappos - online shop

Result: This experiment validated both customer demand and willingness to buy shoes online.

Lesson: MVPs can be scrappy—sometimes they’re more about testing business models than building full platforms.

Key Takeaways from Case Studies

  • Dropbox shows that MVPs can be as simple as a demo if they test the right hypothesis.
  • Uber highlights the transition from prototype to MVP in a real-world market.
  • Airbnb demonstrates that MVPs don’t require perfection—just validation.
  • Spotify illustrates how PoC vs prototype vs MVP work together in sequence.
  • Zappos proves that MVPs can validate business models, not just technology.

Conclusion

From PoC experiments that test raw feasibility to prototypes that shape the user journey and MVPs that validate demand, each step plays a unique role in the startup lifecycle. Real-world success stories show that companies like Airbnb, Uber, and Dropbox didn’t skip validation—they followed structured paths aligned with their early product planning.

For founders and consultants, the choice between MVP vs PoC vs prototype isn’t academic—it’s a roadmap to building products people actually want.

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Dmitry Khanevich

CEO NDLabs

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    About the author

    Dmitry K.

    CEO and Co-founder of ND Labs
    I’m a top professional with many-year experience in software development and IT. Founder and CEO of ND Labs specializing in FinTech industry, blockchain and smart contracts development for Defi and NFT.

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