Business angels are entrepreneurs, managers, and professionals who consider making occasional investments of risk capital in new companies which have a promising business project, or other important initiatives. Business angels can be former company owners, retired or active managers, or free professionals who are steeped in the entrepreneurial spirit, like challenges, and desire to acquire part of a company, often operating in an innovative sector.
Business angels often come with sizable personal wealth, and are able to offer the start-up or development phase precious management advice, as well as technical or operative know-how, in addition to a consolidated network of players in the business world. The relationship that develops between the angel and entrepreneur is usually spontaneous and based on mutual trust. This is why this form of investment in or financing is more "informal".