Product design in the early startup stages: to spend $$$ or not?

Hi guys!

😕 Extra expenses on the UI/UX design for early stage startups, a very loaded topic to discuss with founders.

The main discussion points:

1 ➡️ Users don't need a well-thought design when the product idea is raw. A basic design is more than enough.

2 ➡️ The well-designed interface is crucial anyway: users won’t spend time and money on smth that is from the 80s

🤔 Why do I agree with the second opinion?

Recently I helped a Y combinator startup to pitch their product.

And that’s how ⬇️

I suggested creating a product design concept in Figma: clickable prototype, no coding involved, easy to showcase to the users and investors.

The result:

➡️ The team got something tangible
➡️ It saved a buck or two, cause development was not included

More info about the product design concept.

Although,

My friend keeps saying users don’t care about the UI/UX when it’s a new product. They pay attention only to your idea and the solution.

❗️ So, a question to you guys:

What do you think about the early-stage startup design process? Is it essential? How much time do you usually spend on the design (when it’s your first product iteration)?

Your help is much appreciated!