UX budget. It's a tough one to crack.
We've watched many early-stage founders set their UX budget – some brilliantly, others catastrophically.
The winners solved a puzzle that has little to do with spending more money. It's about spending the right money at the right time.
83%
That's how much conversion boost you can get if you up the UX budget by 10%.
3 more numbers that slash the debate about whether UX matters for early-stage startups:
→ Every confused visitor costs you $35
→ Bad interfaces create 3-5x more support tickets ($2,000+ monthly answering "how do I..." questions)
→ UX shortcuts become 5-10x more expensive to fix later
A bonus one 🫶 Every $1 invested in UX design yields $100 in returns.
The catch? Timing is everything.
Spend $5,000 on user research before building features? Smart investment. Spend $50,000 perfecting animations before achieving product-market fit? Not a good call.
Bootstrap ($0-$500K): 8-12% of total funding | Range: $15K-$25KBudget allocation: 50% user validation, 35% wireframes, 15% visual design
Pre-Seed/Seed ($500K-$2M): 15-20% of dev budget | Range: $25K-$50KBudget allocation: 30% onboarding, 25% core usability, 25% design system, 20% mobile
Seed/Series A ($2M-$10M): 20-25% of dev budget | Range: $50K-$100K+Budget allocation: 30% research, 25% optimisation, 25% scaling, 20% new features
Not all UX work delivers equal value. Here's the priority stack:
Tier 1 – Foundation (60% of budget): User problem validation, primary user flow design, functional design system. This is what gets users from signup to value as quickly as possible.
Tier 2 – Growth enablers (30%): Onboarding optimisation, feature usability testing, design system documentation. This is what improves activation and reduces churn.
Tier 3 – Polish (10%): Micro-interactions, advanced research, brand expression. Skip this entirely until Tiers 1 and 2 are solid.
Focus on the UX work that directly impacts your current growth bottleneck. If users can't figure out your core value prop, skip the animations and fix the messaging.
The most successful startups we've seen follow a hybrid approach:
Stage 1: Agency or senior freelancer builds the foundationStage 2: Junior in-house designer handles day-to-dayStage 3: Senior in-house lead + agency for special projects
This gives you expertise when you need it, cost control as you scale, and knowledge transfer throughout.
Two easy traps to avoid: spending nothing and hoping for the best, or throwing money at expensive agencies without clear objectives. Both waste precious resources. Invest strategically at each stage, measure religiously, optimise continuously.