MVP or Minimum Viable Product is a product with a minimum set of features sufficient to satisfy customers’ needs. It is used to get feedback and make any changes in the project.
According to the definition of Eric Ries, famous American entrepreneur, MVP is a concept from Lean Startup that emphasizes the impact of learning in new product development.
Eric Ries describes as follows:
“MVP is the version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”
In the current scenario of the ICO world, MVP is assuming a central role for the investors’ choice.
2017 was a year when ICOs took over. Approximately 40 startups came out everyday in the digital market well-described lines of blockchain-based projects, looking for investment funds.
Many ICOs have turned out to be “only noise’ makers”, while others (few) are those who, thanks to the valid project, have effectively achieved successes.
In any case, all these ICOs have reached the hard cap required, thus highlighting a great involvement by investors (some taken from the so-called FOMO — Fear of Missing Out), many of which have also experienced a great deal of discontent.
Today, it seems like investors either lost confidence or simply haven’t got any significant gains yet, except that they have become more scrupulous and smarter in the choice of ICOs to invest in.
For these reasons, in order to be able to perceive, in this great chaos, a valid project on which to invest, it is necessary to rely on more specific criteria, such that set a high benchmark.
MVP is one of those critical features that makes an ICO and its project more “concrete”, useful both for the scrupulous investor and for the creator of the project itself.
Firstly, it is useful to make a description from the name itself: Product — Viable — Minimum.
MVP is already a product because it has already been tested on the minimum but sufficient (viable) resources. It is therefore different from a prototype, which is an idea of functionality that has not been tested yet, or from a finished product, which is a complete product with all the necessary and integrative resources.
With MVP it is therefore possible to validate or invalidate the assumptions related to the market, demand and utility.
In general, thanks to MVP, it is possible to test ideas in the real market, as an approximate but working version of the final product, created precisely to verify the real users’ behaviour.
MVP benefits are directed to all subjects involved: on the one hand, team who will receive feedback from the real market, and then figured out if project will have to be reviewed, on the other side, investors who will receive more “guarantees” on the actual project implementation compared with “only noise makers” who are located in the market and lastly, project itself will receive the best benefit by seeing it transformation from simple ideas to product, even if approximate.
Basically, on blockchain-based projects we can say that MVP is the equivalence of the “beta testers” for software products, where some people are willing to try it and / or buy it before it becomes popular, so as to might receive the privilege of using the product before it’s made available to the general public. At this stage, MVP must showcase future benefits in order to attract and retain the first users/adopters.
For all reasons described in this article, it is essential that before the presentation to the general public, ICOs themselves have a ready and usable MVP, which will then be integrated with all additional features that will make it a finished product, possible action once funds requested by the ICO project will be collected.
An ICO that shows itself without a MVP could be a new and yet another “noise’s maker”.