MVP is a Minimum Viable Product created in the initial phase of business with minimal features that demonstrate that would demonstrate your business idea. An MVP is not a prototype.
Following are some of the reasons why an MVP is created:
1. Validate assumptions: An MVP enables you to validate your assumptions about the usability of your final product.
2. Demand projection: You may be able to forecast demand for your final project depending on the response you receive from users with respect to your MVP
3. Avoid Overbuilding: Inculcating the feedback received for MVP while developing the final product will make sure that you incorporate the features users want and not everything you desire.
https://www.feedough.com/minimum-viable-product-mvp/ this article is a good read for the topic.