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Startup Strategy December 2025 11 min read

PoC vs Prototype vs MVP: What's the Difference? How to Choose?

Proof of concept, prototype, and MVP are often used interchangeably—but they serve very different purposes. Understanding when to use each can save your startup months of wasted effort and tens of thousands of dollars.

If you're launching a startup or building a new product, you've likely encountered the terms proof of concept, prototype, and MVP. Many founders use these terms interchangeably, but each represents a distinct stage in product development with its own purpose, timeline, and investment requirements. Choosing the wrong approach at the wrong time is one of the most common mistakes that kills promising ideas.

What's a Proof of Concept (PoC)?

A proof of concept (PoC) is a demonstration that validates whether a specific idea or technology is technically feasible. It answers one fundamental question: "Can this actually be built?"

A PoC focuses on the riskiest assumption in your project. If your app relies on an AI algorithm that needs to process data in a specific way, the PoC proves that algorithm works. If your business model depends on integrating two systems that have never been connected, the PoC demonstrates that integration is possible.

PoC Key Characteristics

  • Purpose: Validate technical feasibility
  • Audience: Internal team, technical stakeholders, investors
  • Fidelity: Rough, functional demonstration
  • Output: Evidence that the core concept works

How a PoC works

Building a PoC follows a focused, hypothesis-driven process:

1

Identify Your Riskiest Assumption

What's the one thing that, if it doesn't work, kills your entire project? That's what your PoC must prove.

2

Build the Minimum Needed to Test

Strip away everything non-essential. No fancy UI, no secondary features. Just the core functionality you need to validate.

3

Test Against Clear Success Criteria

Define what success looks like before you build. Does the algorithm achieve 90% accuracy? Does the integration complete in under 2 seconds?

4

Document and Decide

Record what you learned. If successful, you have the green light to proceed. If not, you've saved yourself from building something that couldn't work.

The Right Time to Create Your POC

Build a PoC when you have significant technical uncertainty. Here are the signals that indicate you need a proof of concept:

  • • You're using technology you haven't worked with before
  • • Your idea requires integrating systems that haven't been connected
  • • The core value proposition depends on an unproven algorithm or process
  • • Technical stakeholders or investors need proof before committing resources
  • • You're about to spend $50,000+ on development but aren't sure it will work

Ready to validate your idea? Build the POC for your app in just 7 days.

What's a Prototype?

A prototype is an early model of your product that demonstrates how it will look, feel, and function. While a PoC asks "Can we build this?", a prototype asks "Is this the right way to build it?"

Prototypes focus on user experience and design. They let you test navigation flows, interface designs, and feature arrangements before committing to full development. A prototype might be interactive mockups, clickable wireframes, or a functional demo with limited backend capability.

Prototype Key Characteristics

  • Purpose: Validate design and user experience
  • Audience: Users, designers, product stakeholders
  • Fidelity: Can range from low (wireframes) to high (interactive demos)
  • Output: Refined design direction and validated UX decisions

How prototyping works

The prototyping process is iterative and user-focused:

Low-Fidelity Prototyping

Start with paper sketches or basic wireframes. Test the fundamental flow: How does a user get from point A to point B? Where do they get confused?

Timeline: 1-3 days

Medium-Fidelity Prototyping

Create clickable mockups using tools like Figma or Adobe XD. Add real content, test button placements, and refine the visual hierarchy.

Timeline: 1-2 weeks

High-Fidelity Prototyping

Build interactive prototypes that look and feel like the final product. Include animations, real data, and complete user flows.

Timeline: 2-4 weeks

User Testing & Iteration

Put the prototype in front of real users. Watch them use it. Ask questions. Refine based on feedback. Repeat until the design works.

Timeline: Ongoing

When to create your prototype

Prototyping is valuable when you need to validate user experience and design decisions:

  • • You've validated technical feasibility (your PoC succeeded)
  • • You need to test different design approaches
  • • Stakeholders need to visualise the product before approving development
  • • You want user feedback on the experience before building
  • • Your product has complex user flows that need validation

What's a Minimum Viable Product (MVP)?

An MVP is a functional product with just enough features to satisfy early customers and provide feedback for future development. Unlike a PoC or prototype, an MVP is released to real users who actually pay for or use it. The key question is: "Will people use and pay for this?"

The "minimum" in MVP is crucial—it's not about building a bad product, but about building the smallest thing that delivers real value. The "viable" means it must actually work and provide a complete experience for its intended use case.

MVP Key Characteristics

  • Purpose: Validate market demand and business model
  • Audience: Real customers and early adopters
  • Fidelity: Production-ready, stable, and usable
  • Output: User traction, revenue, and market feedback

The Right Time to Create Your MVP

An MVP is appropriate when you've reduced technical and design risk and need to validate market demand:

  • • Technical feasibility is proven (PoC completed successfully)
  • • You have a clear understanding of your target user
  • • The user experience has been validated through prototyping
  • • You're ready to acquire real users and generate feedback or revenue
  • • You have the resources for ongoing iteration based on user feedback

Before building your MVP, make sure you validate your startup idea thoroughly. The biggest MVP failures come from skipping the validation stages.

PoC vs. Prototypes vs. MVP: What's the difference?

Here's a comprehensive comparison to help you understand how these three approaches differ:

Aspect Proof of Concept Prototype MVP
Primary Question "Can we build it?" "How should it work?" "Will people use it?"
Focus Technical feasibility User experience Market validation
Audience Internal team Test users Real customers
Timeline 1-2 weeks 2-4 weeks 1-3 months
Typical Cost $100-$5K $5K-$15K $20K-$100K+
Functionality Core concept only Simulated features Working product
Reusability Sometimes Design assets Foundation for growth

How to Pick the Best Approach for Your Startup?

Choosing between a PoC, prototype, and MVP depends on where your biggest risks lie:

Start with a PoC when...

Your biggest risk is technical. You're using new technology, complex integrations, or algorithms that haven't been proven. You need evidence that your core idea is technically achievable before investing further.

Start with a Prototype when...

Technical feasibility is clear, but you're uncertain about the user experience. You have multiple design approaches and need to test which one resonates. Stakeholders need to see and interact with the concept before approving development.

Start with an MVP when...

You've already validated that it can be built and users want it. Your biggest remaining risk is market adoption and business model validation. You're ready to learn from real customers using a real product.

The Ideal Progression

PoC
Prototype
MVP
Full Product

Each stage reduces risk before the next investment. Skip stages at your own peril.

FAQs

Can I skip the PoC and go straight to building an MVP?

You can, but only if there's no significant technical uncertainty. If you're building something with proven technology and straightforward integrations, you might skip directly to prototyping or MVP. However, if your idea depends on unproven technology or complex systems, skipping the PoC is a gamble that often leads to expensive failures. A $100-$5,000 PoC could save you from a $50,000 mistake.

What's the difference between a prototype and a demo?

A demo typically shows what a product could do, often using pre-recorded scenarios or controlled conditions. A prototype is interactive—users can actually click through it and experience the flow. Demos are great for presentations, but prototypes provide real feedback on usability. Both have their place: demos for stakeholder buy-in, prototypes for user testing and design validation.

How do I know when my MVP is "minimum" enough?

Your MVP should do one thing really well—the core value proposition that solves your user's main problem. If a feature doesn't directly support that core function, cut it. A good test: if removing a feature would prevent users from achieving the primary goal, keep it. If users could still accomplish their goal without it, save it for later. Remember: you can always add features, but you can't get back wasted time and money.

Should I build the PoC myself or hire someone?

It depends on your technical skills and time constraints. If you can build a basic PoC in a few days yourself, that's often the fastest path. But if building it yourself would take weeks or requires skills you don't have, hiring experts is usually more cost-effective. A professional team can often deliver a PoC in 7 days for $100-$5,000—less than the opportunity cost of a founder spending a month learning new technologies.

Choose the Right Stage, Save Time and Money

The path from idea to successful product isn't a straight line—it's a series of validated steps. A proof of concept confirms you can build it. A prototype confirms you're building it right. An MVP confirms people want it. Each stage answers different questions and reduces different risks.

The founders who succeed aren't the ones who build the fastest. They're the ones who validate the smartest—reducing risk at each stage before investing in the next. Start with the stage that addresses your biggest uncertainty, and you'll build something people actually want.

Not Sure Where to Start?

Whether you need a PoC to validate your technology, a prototype to test your UX, or guidance on your MVP strategy—we can help you take the right next step.