5 Successful MVPs That Turned into Billion-Dollar Apps

Are you hoping to turn an idea into a billion-dollar app? You’ll need an MVP. In the startup world, a minimum viable product (MVP) is an invaluable tool for testing the market, validating demand, and gathering feedback to guide iteration. 

An MVP represents the simplest functional version of an app. By eliminating unnecessary features, MVPs help startups quickly get a product into users' hands without a significant investment. 

This lean methodology approach is popular for a reason—it works. MVPs save time and money, two resources in short supply for most startups. The journey from MVP to a successful company is a well-worn path. Many of the world’s most recognized apps started with simple MVPs to test their ideas. 

In this article, we showcase five tech unicorns that began as MVPs. We’ll examine each of their stories and share key lessons for startups. 

Types of MVPs

While the philosophy behind every MVP is similar, the actual format can vary. Some MVPs are complex, including several features or technologies. Others, however, are straightforward, leveraging manual processes to simulate software interactions. Generally speaking, MVPs fall into two main categories: low-fidelity or high-fidelity. 

Low Fidelity MVPs 

A low-fidelity MVP is a very simple tool to present to users. Often, MVPs in this category are only slightly more refined than a prototype. Low-fidelity MVPs are often quick and inexpensive to create, but they’re usually a long way off from the final product. Depending on their goal, they can take many forms. A low-fidelity MVP can be a precursor to a high-fidelity MVP. 

Examples of low-fidelity MVPs can include: 

• Website landing pages: A single-page site promoting an intended product and its features can help startups gauge interest.
• Email or social media campaign: For businesses with an existing audience, an email or social media campaign can serve as a space to describe intended features 
• Customer interviews: If the goal of your MVP is to gather user feedback, a structured customer interview can be a great way to propose product features and determine interest from your target market.
• Explainer video: As the name suggests, an explainer video MVP forgoes an actual product and uses a clear and simple video to explain a potential product’s features and functionality. The video can be used to generate awareness and solicit user feedback.
• “Fake door” MVP: A “fake door” MVP uses UI elements to represent features that aren’t yet developed but could be added to a product in the future. For example, a button on a user interface for an AI-enabled photo editor might instead lead to a pop-up allowing users to indicate their interest in the proposed feature.

High-Fidelity MVPs

A high-fidelity MVP more closely resembles the final product than a low-fidelity MVP. However, even a high-fidelity MVP is restricted to a few essential components. High-fidelity MVPs often require more investment than low-fidelity MVPs and yield more specific insights.

Examples of high-fidelity MVPs include: 

• “Wizard of Oz” MVP: This type of MVP gives the appearance of a fully functioning app, but in reality, someone manually completes tasks on the backend. For example, for the MVP of an app to locate low flight prices, a human would be looking for low-priced flights instead of an algorithm.
• Concierge MVP: Like a “Wizard of Oz” MVP, a concierge MVP relies on manual, instead of automated processes to deliver functionality to users. The difference is that a concierge MVP is transparent about the interactions being human-powered. 
• Single-Feature MVP: As the name suggests, a single-feature MVP focuses on just one, essential feature, like a timer, map, or to-do list. This narrow scope helps startups understand users’ appetite for an intended core feature. 

Some of today’s most recognizable businesses started out as low-fidelity or high-fidelity MVPs. Let’s dissect their success stories for helpful minimum viable product examples and valuable startup lessons. 

5 MVPs That Have Achieved Unicorn Status

1. Airbnb

How Airbnb’s MVP Started

Airbnb started when two roommates, Brian Chesky and Joe Gebbia, had the idea to rent out air mattresses in their apartment to attendees of a local conference. They called it, “AirBed & Breakfast” and later shortened the name to Airbnb. Their MVP was simple: a website with information about the accommodations and the hosts. 

The Problem Airbnb Solved:

Airbnb started within the context of a sold-out conference in Denver. Hotels were hard to come by, and the ones that had vacancies were very expensive. Airbnb solved a real pain point for users by providing affordable short-term stays in expensive cities. Though the product has evolved a lot since the beginning, Airbnb continues to make travel more affordable with unique stays that rival the price of most hotels. 

Key MVP Strategy:

Founders Chesky and Gebbia took a minimalist approach to testing their idea. Their MVP focused on addressing a single problem with few features. By validating one core idea, Airbnb established a clear foundation for growth. 

How the MVP Grew into a Billion-Dollar Business:

Of course, Airbnb has grown from the early air mattress days. The company has since expanded significantly to include many more listings, including international options. Iterations have evolved the Airbnb platform from a simple site to a full-scale platform with features like a suggested pricing algorithm for hosts, sophisticated search filters, and identity verification.

Lesson for Startups:

Start Small, Solve a Real Problem – Airbnb demonstrates that even the simplest MVP can attract users if it addresses a genuine need. Starting small helps startups confirm user needs and proceed with confidence in the right direction. 

How did Airbnb start as an MVP?

Airbnb started as an MVP website that allowed visitors to book an air mattress at the founders’ Denver apartment. The simple site demonstrated a real need for affordable accommodation in expensive cities. These findings launched Airbnb on a path of immense growth, ultimately leading to the billion-dollar app Airbnb is today. 

2. Dropbox

How Dropbox’s MVP Started

Initially, the Dropbox MVP was an explainer video, showcasing a hypothetical user interface and highlighting how the product would work. This simple approach helped the company save on development costs and test market interest at the same time.

The Problem Dropbox Solved:

Dropbox recognized that file storage and sharing could be complicated. The company addressed the common need for easy access to files across devices. Dropbox’s simple MVP helped confirm the problem and present its product as the solution.  

Key MVP Strategy:

Dropbox adopted a low-fidelity MVP strategy. By using a video explainer MVP, the company validated its idea before development. This lean approach helped Dropbox reduce its risk and attract excited users before a functional product was launched. 

How the MVP Grew into a Billion-Dollar Business:

The Dropbox MVP was extraordinarily successful, scoring the company tens of thousands of interested users on its product waitlist. The video also opened the door to funding, and eventually, full product development. Dropbox is a classic MVP example showing how even a simple demo can create invaluable momentum for a startup.

Lesson for Startups:

Validate Interest Before Building – Dropbox proved that testing an idea’s demand with a simple MVP, like a video or landing page, pays off. The company saved significant time and resources by validating interest before investing in building a functional product.

How did Dropbox start as an MVP?

Dropbox started as a video explainer MVP. The less-than-two-minute video offered a thorough and compelling introduction to Dropbox, generating significant market traction. Ultimately, Dropbox demonstrated that validating interest first before building has the potential to alter a startup’s trajectory dramatically. The company likely never would have achieved its billion-dollar app status without the Dropbox MVP. 

3. Instagram

How Instagram’s MVP Started

Instagram initially launched as an app called Burbn, a photo and location check-in app. The MVP combined photo sharing with social interactions. The founders quickly recognized that the photo-sharing feature resonated with users. Later, the Instagram MVP pivoted to become a simpler product focused on photo-sharing and editing. 

The Problem Instagram Solved:

Instagram filled a hole in the market via a mobile-friendly, photo-sharing experience with easy editing options. The app gave users the ability to capture their lives, make the most of mobile phone cameras, and connect with others, all at the same time. 

Key MVP Strategy:

Instagram’s MVP was a functional app with a few simple features. Initial user testing helped Instagram pivot to focus on a core feature that resonated most with users—photo sharing. This shift informed the change from the name BURBN.  Instagram, a combination of “instant” and “telegram,” reflects the real-time social nature of the photo app. 

How the MVP Grew into a Billion-Dollar Business:

Instagram grew into the social media giant it is today by focusing on user growth, engagement, and simplicity. All these factors led to rapid, global adoption. The app has since topped 500 million daily active users. Instagram’s user-centric, iterative approach also helped the company attract the interest of Facebook (now Meta), which acquired Instagram in 2012.

Lesson for Startups:

Focus on One Core Feature that Users Love – More bells and whistles won’t necessarily make your app stronger. In fact, simplifying your MVP to a single feature can make it more appealing. Instagram illustrates how doubling down on a single core feature can offer a foundation for success.

How did Instagram start as an MVP?

The Instagram MVP was a mobile check-in and photo-sharing app called BURBN. After founders Kevin Systrom and Mike Krieger recognized the popularity of the photo feature, they switched gears, narrowing their focus to photo-sharing. Instagram’s simplicity helped it gain momentum and become an app valued at $1 billion when Facebook acquired it in 2012. 

4. Uber

How Uber’s MVP Started

Uber started out as a simple app that allowed users to request a black car service in San Francisco. Its MVP, then called UberCab, focused on a handful of features that let users book and pay for rides. Initially, the MVP was only released to a small pool of beta users who could only access the app by invitation.

The Problem Uber Solved:

Uber recognized a need for convenient, on-demand transportation. The app sought to simplify the traditional methods of hailing a cab, especially in areas with limited cab availability. Initially, the app focused on high-end black car service within San Francisco.

Key MVP Strategy:

Uber targeted a specific area (San Francisco) and a single ride type (black car service) before expanding to other locations and vehicles. These restrictions helped Uber validate user appetite for its service before adding features. 

How the MVP Grew into a Billion-Dollar Business:

Uber took a gradual growth approach, first expanding to cities with high taxi demand. Each new market offered new insight and a chance for Uber to better align with user needs. Over time, the app added more cities, vehicle options, and niche features for users in various markets. 

Lesson for Startups:

Start Local, Then Scale – Uber demonstrated that targeting a single location allows for better market testing. By limiting itself to one city before scaling, Uber conserved valuable resources and applied learnings from one market to the next.  

How did Uber start as an MVP?

Uber launched as UberCab, an invitation-only app that allowed users to book and pay for black car services in San Francisco. The app expanded one location at a time, prioritizing cities with a high need for convenient, on-demand ride service. Over time, the app also added other features and vehicles. 

5. Twitter (now X)

How Twitter’s MVP Started

Twitter, now X, started as an internal messaging platform for employees at podcast company Odeo. The MVP was first introduced to the general public at SXSW, and it quickly took off. The simple microblogging app included only the basic functionality of posting and reading updates.

The Problem Twitter Solved:

Twitter gave users a way to share real-time thoughts with a broad audience. The platform was particularly well-suited to brief updates, giving it an immediacy unlike other blogging sites. At the time, quick and easy communication with a large group of people was also a new concept. 

Key MVP Strategy:

Low-tech, High-impact Launch: Twitter showed that MVPs don’t need to be complicated to be effective. Its simple concept with limited features was well-received by users right away. With a low-tech, high-impact launch, Twitter validated the appeal of short-form messaging.  

How the MVP Grew into a Billion-Dollar Business:

Twitter took off quickly, gaining popularity as more users joined. As real-time content increased, so did the app's appeal. New users wanted to be part of the conversation. Today, X (formerly Twitter) continues to be one of the most active social media platforms globally. 

Lesson for Startups:

Simplicity Can Drive Adoption – Some founders make the mistake of thinking that more features mean better. But in Twitter’s case, the simplicity didn’t attract from its appeal. Instead, simplicity was the appeal. The company showed that a basic, high-value feature can attract a user base if it fills a unique need.

How did Twitter start as an MVP?

Twitter’s simple platform allows users to share text-only real-time updates to many people at once. The app made a splash at SXSW when it launched to the public in 2007. Very quickly, the app gained users, showing even a simple MVP with basic functionality can prove an idea.

What Billion-Dollar Apps Can Teach Startups About MVPs 

Startups hoping to achieve unicorn status should pay attention to billion-dollar apps that started as MVPs. Studying their stories yields important lessons about what to prioritize in an MVP development effort. 

Before you launch your MVP, remember these important lessons. 

• Start small and solve a clear problem. 
• Validate the idea before investing heavily in development.
• Focus on one core feature that resonates with users.
• Scale gradually based on user feedback and demand.
• Simple, high-value features drive user adoption. 

From Dropbox’s captivating video explainer video to Uber’s limited-access app, the road to startup success is paved with MVPs of many different forms. Successful companies don’t launch in their final, fully refined state. Instead, many billion-dollar businesses began with minimal products. By prioritizing flexibility and adopting a user-centric approach that’s responsive to user needs, starting with an MVP sets startups up for long-term success fueled by nimble, user-centric products. 

The path from idea to MVP requires many steps and decisions. Partnering with a reliable, expert development team can help you navigate the entire process. From choosing which features to include to building a functional MVP, Designli can help you take your next step with confidence. Schedule a free consultation to learn more. 

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