MVP
The first working version of a product with only core features, to validate a business idea quickly in the market.
The Minimum Viable Product (MVP) is one of the most important concepts in modern product development. Instead of building a perfect product for months, you bring the core idea to market quickly, gather real user feedback and iterate based on data. Successful companies like Dropbox, Airbnb and Spotify all started with an MVP.
What is MVP?
An MVP (Minimum Viable Product) is the simplest version of a product that provides just enough functionality to attract early users and validate the central business hypothesis. The concept comes from Eric Ries’s Lean Startup methodology. The word Viable is key: an MVP must deliver real value and be usable. It is not a half-finished prototype but a working product with deliberately reduced scope. Features are chosen by whether they test the core hypothesis; everything else is deferred to later iterations.
How does MVP work?
The MVP process follows the Build–Measure–Learn cycle: First the core hypothesis is formulated (e.g. users are willing to pay for X). Then the MVP is built with minimal effort to test that hypothesis. After launch, user data is collected and analysed. Based on insights, the product is either improved iteratively (iterate) or the strategy is changed (pivot). Each iteration adds only features justified by data.
Practical Examples
Dropbox: Before writing a line of code, Dropbox validated demand with an explainer video. The waitlist exploded overnight from 5,000 to 75,000 sign-ups.
Airbnb: The founders rented an air mattress in their own flat to test whether people would stay with strangers.
Zappos: The founder photographed shoes in local stores and listed them online. Only after an order did he buy and ship them.
Buffer: An MVP of a single landing page with a pricing table tested whether users would pay for social media scheduling.
Mid-size company testing digital order capture: Instead of a full app, a simple web form with email notification is built.
Typical Use Cases
Startup founding: Validating the business idea before larger investment
Internal digitalisation: Testing a new digital process with one department before company-wide rollout
New product features: A/B testing a reduced feature set before full implementation
Market expansion: Testing an existing product in a new segment with minimal changes
Investor pitch: Working prototype as basis for funding discussions
Advantages and Disadvantages
Advantages
- Risk reduction: Early market test prevents expensive wrong turns
- Faster time-to-market: In weeks instead of months
- Data-driven decisions: Real user feedback instead of assumptions
- Cost efficiency: Focus on essentials saves development budget
- Learning: Deep understanding of the target group through direct contact
Disadvantages
- Quality risk: An MVP that is too minimal can put off potential customers and damage reputation
- Technical debt: Code built quickly often needs costly rework later
- Misinterpretation: Negative feedback may be about the MVP, not the idea
- Scope creep: Temptation to add just one more feature is high
Frequently Asked Questions about MVP
How long does MVP development take?
What is the difference between MVP and prototype?
How do you define MVP scope?
Related Terms
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