In recent years the finance gap between very early stage financing is observed, where venture capitalists and banks do not invest up to the stage they do grown. In this gap have the business angels an important role to fill.

Business angels are private individuals, who usually invest on their own or as part of the syndicate, mainly in innovative companies, from hi-tech industry, in its early stage. Previously they had not any previous connection with the company in which they invest but generally have good experience of the industry or sector on which it operates. In addition to money, they bring to an entrepreneur knowledge, skills and know-how to help the company succeed. Angels capital may be also helpful in taking the business to the point at which it will be more attractive to a bank or formal venture capital. Venture capitalists operate very similar to business angels, and similarly, are an important source of funding for the entrepreneurial community. They are extremely selective and invest only in ventures with high growth potential. Their time-line is often set at the entry of a venture investment and also include a planned exit.

The main difference between Business Angels and Venture Capitalists is that, the first invest his or her own money whilst latters invest someone else money. What is more, business angels give also his/hers knowledge in early stage companies, while venture capitalists generally invest in a later stages. Angels seldom fund a company to exit, and venture capitalists rarely provide the seed capital and time commitment to start-up entrepreneurs. As a result, both business angels and venture capitalists, play key roles in venture industry and often cooperate. What is more, the venture industry and the nation would benefit from Angel - Venture Capitalists framework that fosters more understandings, and a more efficient working relationship between the two groups.

Business angels and venture capitalists operate all over the world; however, their activity is much more visible in the USA and in Europe. Very important is the fact, that their significance and popularity constantly increased on both continents.