Convertible Notes and Startup Funding
February 12, 2025
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In the previous articles, we have already studied about the proof of concept as well as the minimum viable product concept. However, there is one more methodology that is commonly used in the product development stage after the seed funding has been received. This mechanism is known as “prototyping”. In this article, we will further closely evaluate the concept of prototyping as well as the financial benefits that it offers to entrepreneurs.
Prototyping is the process of creating a visual representation of a product. It is important to know that sometimes the entire product is created whereas, at other times, only a part of the product is created as part of a prototyping exercise.
The prototyping technique is widely used in industries where there is a huge emphasis on user experience as well as the user interface. This is because of the fact that prototypes simulate the actual user interface of the product. Hence, they prove to be more effective since customer focus groups do not have to imagine the interface. Instead, they can interact with an active interface.
Prototyping is used in many different companies and industries. It is also used for many different purposes. Hence, there are several types of prototypes that exist. Details about the most commonly used types of prototypes have been listed below:
In the case of products, which are not related to information technology, a paper prototype includes the creation of a three-dimensional model which depicts the product in actual life. A lot of the time, there are products such as laptops and tablets which have hardware as well as a software component. In such cases, both types of prototypes may have to be developed in order to clearly communicate the intent of the entrepreneur.
A horizontal prototype means that the user interface of the application is created. However, there is no actual backend development that has taken place. This means that the application is just a showpiece that can be used to demonstrate the color schema and functionalities. However, none of the functionalities actually work at this stage. Often, it is made clickable in order to give customer focus groups as well as investors a real feel of the product.
Prototyping is a fast and effective way to obtain maximum benefits from the product development process. Some of the financial benefits of prototyping have been mentioned below:
The bottom line is that prototyping is different as compared to proof of concept and minimum viable product. The three types of techniques can be used in combination by the entrepreneur in order to build a more robust product that has a higher chance of receiving further funding.
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