What is an MVP ?

A minimum viable product, or MVP, is a product with enough features to attract early-adopter customers and validate a product idea early in the product development cycle. Across start-ups coming from different backgrounds and trying to address unique markets MVP can help the team receive user feedback as quickly as possible to test their hypothesis, iterate and improve the product.

Why a investor needs to look at an MVP ?

When the startup founders approach investors for early funding. It is advisable that they reach out after they have completed some form of a MVP/POC in hand. It will give investors the following clarity about the business, typical investors look for 3 main data points,

1. It has enough value that people are willing to use it or buy it initially.
2. It demonstrates enough future benefit to retain early adopters.
3. It provides a feedback loop to guide future development.

RE tip for founders

A startup idea is a founder’s brain child. However, it might be difficult for  investors see value in something which is very abstract and will be hard for them to understand its worth, the way a founder sees it. In such instance, there is nothing better than presenting them in real, in the form investors can see, feel or relate to. This is where an MVP plays an important role. An MVP shows them that you are not just conceptualising your idea but have already executed a base product. It helps investors to make a quick assessment of the scale of the idea you are presenting to them.