PoC vs Prototype vs MVP: Key differences startups should know

In the dynamic world of startups, ideas are abundant, but turning them into solutions is where the real challenge lies. There are 3 popular approaches to testing the assumptions underlining your ideas: Proof of Concept (PoC), Prototype and Minimum Viable Product (MVP). Yet, these concepts often spark confusion, making many people use these terms interchangeably.

What do these terms really mean, and how do they differ? How can understanding their roles help your startups move from an idea to a successful product? In this article, we’ll delve into these three concepts and help you decide how to leverage each for your entrepreneurial journey.

What is Proof of Concept (PoC)?

Key question: “Can this idea work in reality?”

Focus: Technological and technical aspects

A Proof of Concept (PoC) is about demonstrating the feasibility of a concept or tech assumption. Imagine you have an innovative idea that sounds great in theory—but will it work in practice? A PoC helps answer this critical question while exposing potential limitations and challenges early in the process.

PoC is like the first step in bringing a product to life, where you check if your concept has the potential to succeed or whether it should be set aside. Beyond technical validation, a successful PoC can be a powerful tool to persuade stakeholders or managers that the core idea is worth pursuing. This early-stage test gives clear proof that the tech assumption can work as intended in order to reduce the likelihood of failures during later development stages.

When to use PoC?

If you are working on a fresh concept or a technology that hasn't been widely tested, this is where a PoC becomes essential. Remember: 90% of new start-ups fail, with a significant number in the tech sector.  PoC is also valuable when you need to:

- Verify the selected development approach

- Check the feasibility of a technical solution

- Define your solution's limitations to reduce risks

- Demonstrate project viability to your early investor

- Make informed decisions before committing resources or full investment

What is a Prototype?

Key question: “How will the product look and function?”

Focus: UX/UI

Once the feasibility of a concept has been validated, the next step is to transform that idea into something tangible through a prototype. Derived from the Latin proto meaning “original” and typus meaning “model,” a prototype is an early product sample to assess usability, design, and functionality before it is finalized for production.

Prototypes can come in various forms, depending on specific needs in the design and development process:

- Paper-based prototype (e.g., Simple sketches or wireframes to map out ideas.)

- Digital prototype (e.g., UI mockups, interactive “clickable” versions that simulate the user experience.)

- Miniature prototype (e.g., IoT product samples to represent functionality.)

The purpose of a prototype is to create a tangible model that addresses the problems defined during the idea stage. Instead of investing significant time and resources into the full design cycle, prototypes allow designers to validate an idea by creating an early version of the solution. This enables teams to quickly gather valuable feedback from early investors and refine their ideas efficiently.

When to use a Prototype?

In the product development process, a prototype serves as an important tool to bridge the gap between concept and reality, helping you understand how users will interact with the product. You should consider using a prototype when you want to: 

- Create a visual, interactive model of your product

- Gather feedback on design and usability

- Securing funding to early investors

- Reduce risks by refining the product before full development

What is a Minimum Viable Product (MVP)?

Key question: “Will users adopt and pay for this product?”

Focus: Basic and functional version

A Minimum Viable Product (MVP) is the lean version of your product with essential functions and features to be released to early adopters. This approach allows you to test your product idea with real users with minimal investment, offering a low-risk testing ground before committing thousands or even millions of dollars to full-scale development.

By launching an MVP, you are taking the first step to uncover the market’s interest in your product. Think of it as building the foundation to determine whether your product resonates with the target audience. An MVP allows you to identify areas for improvement, determine which features to prioritize, and decide whether to scale back or expand your offering to meet user expectations.

When to use an MVP?

Developing new products is always risky, and an MVP is a good choice to determine whether a product idea is worth developing further. You should consider using an MVP when you want to:

- Assess market receptions by early adopters

- Optimize development with minimal resources

- Securing venture capital or crowdsourced funds

- Collect user feedbacks for improvements

- Mitigate the risk of failure.

PoC vs Prototype vs MVP: Understanding the differences

Using PoC, Prototype, and MVP at different stages in the product development process

The PoC, prototype, and MVP are applied at different startup stages to support the journey from the ideation to product launch:

- PoC is typically used during the project discovery and pre-seeding stages, focusing on validating the feasibility of a concept.

- Prototype is at the seeding and early stages, helping visualize and refine the product’s design and functionality.

- Finally, the MVP is developed at the early stage, where a basic functional product is introduced to test market reception.

While PoC and prototype are quicker and less resource-intensive, building an MVP demands more time, effort, and investment. To demonstrate the differences between 3 concepts, we create a visual comparison below:

Key differences between PoC, Prototype, and MVP

To conclude

Overall, PoC, prototype, and MVP are all important stages in the product development process. Each approach serves a distinct purpose, aligning with specific stages of the startup journey—from validating feasibility (PoC), refining usability and design (Prototype), to testing market reception (MVP). By recognizing when and how to use each method, startups can avoid over-investing in unproven ideas and focus their limited resources on building products that meet real market needs.