OpenAI Select PartnerMVP vs Prototype vs Proof of Concept: What Each One Is and Which to Build First
A proof of concept, a prototype and an MVP answer three different questions: can it be built, will people understand it, and will people use and pay for it. Building the wrong one first is one of the most common ways founders waste their first budget.
In this guide 9 sections
Founders use these three words interchangeably, and that confusion costs money. Here is what each one is for, in plain terms.
One line each
Proof of concept: can it be built? Prototype: do people understand it? MVP: will people use it, and pay for it?
The three side by side
| Proof of concept | Prototype | MVP | |
|---|---|---|---|
| Question | Is it technically possible? | Is the flow clear? | Will people use and pay? |
| Audience | Your team, technical advisers | Test users, investors | Real customers |
| Real code? | Partial, throwaway | Usually none | Yes, production-ready |
| Output | Yes or no on feasibility | Feedback on the experience | Usage and revenue data |
Proof of concept
Build one when the core technology is uncertain. A common example today: "Can an AI assistant answer correctly from our policy documents?" A small test on real documents answers that before you invest in a full product. See how to build an AI chatbot for your business for that exact case.
Prototype
A clickable prototype, usually built in Figma, lets you watch real users try the flow before any code exists. It is the cheapest way to find confusing screens and missing steps. Our rapid prototyping service exists for exactly this.
Not sure which one you need?
Book a free 30-minute call. We look at your idea and tell you whether to start with a proof of concept, a prototype or an MVP.
Book a free 30-minute call →Minimum viable product
An MVP is real software that real customers use. The key word is "minimum": the smallest set of features that lets a user complete the core job end to end. Everything else waits. Our guide on the true cost of building an MVP explains where MVP budgets go, and the scoping framework shows how to cut features without cutting value.
Which one should you build first?
- Technology uncertain? Start with a proof of concept.
- Experience uncertain? Start with a prototype and test it with five to ten target users.
- Both clear? Go straight to an MVP.
The method that works across all three is the same: write down what you are trying to learn before you build. The idea validation guide covers how.
A worked example
Imagine a founder who wants to build an app that lets small clinics answer patient questions automatically from their own documents.
- Proof of concept: take ten real clinic documents and fifty real patient questions, and test whether an AI model answers correctly with sources. If accuracy is poor, the idea needs rethinking before anything else.
- Prototype: design the patient chat screen and the clinic's review dashboard in Figma, and test them with three clinics. Do the staff understand how to approve or correct answers?
- MVP: build the working product for those three clinics: upload documents, answer questions, hand over to staff when unsure, and track answer quality.
Each step answers one question cheaply before the next, more expensive step begins.
Mistakes founders make
- Calling a prototype an MVP: clicks in a design file are not usage data.
- Over-building the MVP: adding features "just in case" delays the learning.
- Skipping the proof of concept when the core technology is genuinely uncertain.
- Treating the proof of concept as the product: throwaway code should be thrown away.
Planning the MVP itself? Our guide on how long it takes to build an app shows the phases from scope to launch.
How we help
At Creuto we start every engagement by deciding which of the three a founder actually needs. Sometimes the right answer is a two-week prototype test, not a full build.
Frequently asked questions
What is the difference between a prototype and an MVP?
A prototype shows how the product will look and flow, usually without real data or working code behind it. An MVP is a real, working product with the smallest set of features that lets users complete the core job.
When do I need a proof of concept?
When there is real technical uncertainty, for example whether an AI model can answer accurately from your documents or whether two systems can be integrated. If the technology is well proven, skip it.
Can a prototype raise investment?
A clickable prototype can help you explain the idea and gather early interest. Many investors will still want evidence of real usage, which an MVP provides.
How long does each take?
A proof of concept or clickable prototype can take days to a couple of weeks. A focused MVP takes longer because it is real software. At Creuto the first working version typically takes about 4 weeks.
Should I always build an MVP?
Not always first. If you are unsure whether users understand the idea, a prototype test is cheaper. If the technology is uncertain, a proof of concept comes first.
Ready to build your MVP?
We turn ideas into a first working version, typically in about 4 weeks, starting from a clear PRD.
About Nihar Ranjan Rout
Founder & CEO of Creuto. Over the past 8+ years Nihar has led product strategy and engineering for 50+ products, including mobile apps, custom ERPs and B2B platforms. Creuto is an OpenAI Select Partner. He works directly with founders to turn an idea into a clear plan and a launched product.
More about Nihar · LinkedIn