First, make the MVP smaller
An MVP, or minimum viable product, is the smallest version of your product that lets real users get value and lets you learn from them. Most first versions are too big. Before looking for ways to pay for one, reduce what needs to be paid for.
- Choose one user and one problem. If the product serves two kinds of users, pick the one that matters most first.
- List every feature, then cut until it hurts. Keep what is needed for a user to complete the main task.
- Do things by hand behind the scenes. Many processes can be manual at the start. Users see the result, not how it was produced.
- Postpone what only matters at scale. Build for your first hundred users.
A smaller MVP is cheaper, and it also reaches the market sooner. That is when the real learning starts.
Then choose how to build it
Pay in cash
Hire an agency or freelancers. You keep all your equity and pay the full cost. It works when you have the budget and a clear scope. The risk is that the first version is rarely the last, and each change costs more. See tech for equity vs. hiring a software agency.
Pay in time
Build it yourself with no-code tools, or learn to build. It costs little money and a lot of time. It works well for testing demand and for simple products.
Pay in equity
Work with a partner who builds the product in exchange for a share of the company. This is tech for equity, also called software for equity or MVP development for equity. You give up a minority stake, and you get a complete team and a partner with a reason to care about the result.
Can you build an MVP in exchange for equity?
Yes. The Loop Ventures builds software startups in exchange for minority equity. We define the scope with you and sign it, show working progress every week, and the product typically reaches the market in 8–12 weeks.
Three things to know:
- It is selective. We take few companies a year, and we evaluate them as an investor would. We look for prior validation, full-time commitment and a real advantage in your industry.
- It is not entirely without cash. Most deals include a commitment fee, a fraction of what an agency would charge. In high-conviction cases we work for equity only.
- The product is yours. The startup owns its product and intellectual property.
What an MVP should cost you
| Route | Cash | Equity | Your time | Best for |
|---|---|---|---|---|
| Agency or freelancers | High | None | Medium | Funded founders with a clear scope |
| No-code, built by you | Low | None | High | Testing demand |
| Technical cofounder | Low | High | Medium | Technology-first companies |
| Tech-for-equity studio | Low | Minority stake | Medium | Validated founders without a team |
Before you start building
Whichever route you take, have these ready. They reduce the cost of any MVP, and they are what we ask for when founders apply:
- Evidence that people want it: interviews, a waitlist, first customers.
- A one-line description of the product and who it is for.
- The one task a user must be able to complete.
- A plan for how the first users will find it.
Next step
See what first versions look like once they are live in our portfolio, read how it works, or apply with your idea.