MVP vs Prototype vs Proof of Concept: What's the Difference?

Why the Confusion Between MVP, Prototype, and PoC Matters

Founders use the terms MVP, prototype, and proof of concept interchangeably all the time. When you tell a developer "I need a prototype" but you actually mean "I need an MVP," you'll end up with a clickable mockup when you wanted a working product. When you ask for an MVP but really need a proof of concept, you'll spend $30,000 answering a question that could have been answered for $3,000.

Understanding the difference between MVP vs prototype vs proof of concept isn't just semantics. It determines what you build, how much you spend, and how long it takes. More importantly, it determines what question you're trying to answer — and each of these products answers a fundamentally different question.

Clear Definitions

Proof of Concept (PoC)

Question it answers: "Is this technically possible?"

A proof of concept tests whether your core idea can actually work from a technical standpoint. It's not meant for users. It's not pretty. It might be a script that runs in a terminal or a cobbled-together integration that proves two systems can talk to each other.

Example: You want to build an app that uses AI to analyze medical images. Before investing in a full product, you build a PoC that takes a sample image, runs it through a machine learning model, and produces a diagnostic suggestion. The PoC doesn't have a user interface. It's just code that proves the technology works.

Prototype

Question it answers: "Is this experience something users want?"

A prototype is a visual representation of your product. It looks like the real thing but doesn't function — there's no real data, no backend, no business logic. Users can click through screens, see the interface, and react to the experience without any actual software behind it.

Example: Using Figma, you create interactive mockups of the medical imaging app. A doctor can click through the screens: upload an image, see the analysis results, view patient history. None of it is real, but the doctor can tell you "yes, this workflow makes sense" or "no, I'd need the results presented differently."

Minimum Viable Product (MVP)

Question it answers: "Will people actually use and pay for this?"

An MVP is a real, working product with the minimum set of features needed to deliver value to actual users. Real code, real data, real user accounts. People can sign up, use it, and give you feedback based on genuine experience — not hypothetical reactions to mockups.

Example: The medical imaging app MVP lets doctors upload images, get AI-powered analysis results, and view a basic patient dashboard. It only supports one type of image analysis (not all eight you planned). The UI is simple. But it works, and real doctors are using it in their practice.

Side-by-Side Comparison

When to Use Each

Start with a Proof of Concept when:

• Your product relies on technology that hasn't been proven for your use case
• Investors or stakeholders need evidence that the core technology works
• You're combining existing technologies in a new way and need to verify compatibility
• The technical risk is the biggest unknown (not market risk)
• You're working with AI/ML, hardware integration, complex data processing, or novel algorithms

Real-world scenario: A logistics company wants to optimize delivery routes using real-time traffic data combined with package weight and vehicle capacity constraints. Before building anything user-facing, they need to know if their algorithm can produce route plans in under 30 seconds with 500+ deliveries. A PoC answers this question in 1-2 weeks.

Start with a Prototype when:

• The technology is straightforward, but the user experience is the differentiator
• You need to test multiple design approaches with users before committing to code
• Stakeholders or investors need to visualize the product before funding development
• You're redesigning an existing product and need user validation on the new experience
• Your target users are non-technical and need to see something tangible

Real-world scenario: A fintech startup is building a personal budgeting app. There's nothing technically novel about it — the challenge is making budgeting feel simple and non-intimidating for people who avoid spreadsheets. A Figma prototype lets them test three different interface concepts with 20 potential users before writing a single line of code.

Start with an MVP when:

• The technology is proven and the design direction is clear
• You need real-world usage data to validate your business model
• You want to start generating revenue or attracting users
• Your hypothesis can only be tested with a functional product (e.g., marketplace dynamics)
• You've already validated the concept through a PoC or prototype and are ready to build

Real-world scenario: After validating demand through a landing page waitlist (500 signups) and testing the UX with a Figma prototype, a SaaS founder is ready to build. The MVP focuses on the core scheduling feature — the one thing that 80% of waitlist respondents said they needed most.

The Decision Framework

Ask these three questions in order. Your first "yes" tells you where to start.

Question 1: "Is the core technology unproven for our use case?"

• Yes → Start with a Proof of Concept
• No → Move to Question 2

Question 2: "Is the user experience the biggest unknown?"

• Yes → Start with a Prototype
• No → Move to Question 3

Question 3: "Do we need real-world usage to validate our business?"

• Yes → Build an MVP
• No → You might not need to build anything yet. Consider validating your idea with non-technical methods first.

The Progression Path

Many successful products go through all three stages — just not always in the same order.

Path 1: PoC → Prototype → MVP (high technical risk) Best for AI products, hardware-software integration, novel algorithms.

Path 2: Prototype → MVP (proven technology, UX-focused) Best for SaaS tools, consumer apps, marketplace platforms.

Path 3: Straight to MVP (validated concept, clear scope) Best for products where the concept is proven elsewhere and you're targeting a specific niche.

Path 4: Prototype → PoC → MVP (complex in both UX and technology) Rare, but sometimes you design the experience first, realize the technology needs validation, and then build.

Common Mistakes Founders Make

Calling a prototype an MVP

You built beautiful Figma screens and tested them with users. That's a prototype, not an MVP. You haven't validated willingness to use or pay — you've validated that people like the idea of your product. Those are very different things.

Skipping the PoC for technically risky products

If your product depends on something unproven — a specific AI model's accuracy, a third-party API's reliability at scale, a complex real-time data pipeline — build a PoC first. Discovering a technical blocker three months into MVP development is far more expensive than discovering it in week one.

Over-building the PoC

A proof of concept should be quick and dirty. Its only job is to answer a technical question. If your PoC has a user interface, responsive design, and error handling, you've gone too far. Save that effort for the MVP.

Going straight to MVP without any validation

Some founders skip validation entirely and jump to building a full MVP. This is the most expensive way to test a hypothesis. Even a simple landing page test or a 10-person user interview can save you months of wasted development.

Cost and Timeline Summary

Here's what you can realistically expect to invest in each stage:

The total cost of doing all three is often less than the cost of building a full MVP that nobody wants. Each stage acts as a filter — if you learn your idea won't work at the PoC stage, you've saved $50K+.

Use our cost calculator to get a more detailed estimate based on your specific project.

Start With the Right Question

The difference between a PoC, prototype, and MVP comes down to what you're trying to learn. Technical feasibility? User desirability? Market viability? Start with the biggest unknown, validate it as cheaply as possible, and then move to the next stage.

Not sure which stage is right for your product? Talk to our team — we'll help you figure out the biggest risk in your idea and recommend the fastest, cheapest way to test it. No obligation, just clarity.