Angels Den Blog

All too frequently, entrepreneurs believe that the more involved and complex an idea is, the better it is likely to be—but, often, the opposite is true. Some of the most successful concepts of all time have been incredibly simple. As an example, while not necessarily an upper-strata success story, look at the idea of the Million Dollar Homepage — the brainchild of a 21-year-old British student looking for a way to raise funds for his university education by selling advertising space at a rate of US$1 per pixel on a single web page. Simple? Yes—but it has made him an international celebrity and a very wealthy man. Or look at Twitter—an incredibly straightforward concept when compared with the likes of Facebook, but one that was able to generate millions of dollars in angel funding and venture capital to launch and grow a concept that is now one of the world’s most popular social networking sites. People who come up with simple ideas can often attract very lucrative angel funding to help them get their plans off the ground—something that we at Angels Den have seen time and time again.

Angel funding is provided by wealthy individuals who have been convinced that a simple idea just might complicate their lives by making them even wealthier: in essence, it is small business investment, in which the angels put up their own money to fund a venture. These people seek out small businesses or entrepreneurs who have great potential and help them to achieve their dreams, making themselves a tidy profit at the same time. It is unquestionable that you are far more likely to attract angel funding to your business idea if you keep things clean, clear and simple. Unnecessarily complex, confusing and convoluted proposals can often put investors off.

The scientific community often uses Occam’s Razor to help it to develop theoretical models. The theory is this: “The simplest explanation is usually the best one.“ When it comes to business ideas, this same principle largely applies: if your idea works by a simple method, then there is absolutely no need to muddle it up with a lot of extra bells and whistles. Those offering angel funding are drawn to simple concepts and ideas, because it is much easier to add to, and develop, a good clear concept than it is to dumb down an overly complex one.

Just look at the world’s most popular search engine today, Google. Its website design is an exercise in simplicity, because Google’s founders appreciate that many competitors of theirs who had reached the dizzy heights of popularity lost their audience when they overcomplicate what they were offering. Google recognises that when people want to search the Internet, they simply want a search box and a ‘go’ button, and it has now not only produced iconic imagery for search engine development of the future, but it has captured the majority of web search traffic.

Angel funding is offered at the discretion of the angel investor, because, after all, it is his or her own money that the investor is risking. It is therefore important that not only should the angel be able to understand your concept fully, but also he or she should be able to see that everyone else in your target market will understand it as well. “Keep it simple” should be your mantra and if ever you’re tempted to add an unrelated gadget to your creation—think twice. Avoid overly flashy details that contribute nothing to the overall design. Then, when you have a clean, simple concept drawn up, begin looking for angel funding…

If you need any help or advice on angel funding, why not visit www.angelsden.co.uk? Here, you’ll find lots of information, hints and tips, and discover how and where you can pitch your ideas to angel investors to give your business the boost that it so richly deserves.