Wealthy individuals who want to invest some of their money in new businesses. Such 'angels' are often entrepreneurs or retired executives who can't quite kick the addiction of the business world and are intrigued by the prospect of backing a new winner.

What is in it for my firm?
An injection of cash when you find that you're permanently up against the overdraft limit and are in constant danger of a cash flow crisis. Unlike traditional venture capitalists, business angels are using their own resources and want to invest in small lumps - the major venture capital firms have high minimum investment levels and are not usually interested in injecting the kind of money that small firms need. In contrast, a business angel might be interested in putting up £30,000. With no formal procedures, angels can often make quick decisions - rightly or wrongly, venture capitalists have a reputation for not making up their minds and demanding endless extra information.

What sort of business qualfies?
One operating in almost any sector of business life- but a potential investor will want to back a firm with serious growth potential, rather than the so-called lifestyle businesses designed to provide a comfortable living for the owner. Consider whether your business has a competitive edge or unique selling point to offer, for example, as well as the expertise and track record of yourself and other managers.

What will a business angel expect from me?
A share of the equity, plus some notion of how he will get his money back. The angel will want a non-executive seat on the board, and probably some kind of involvement in the firm too. Remember that angels are people for whom business has been their life, and their expertise and advice can be as important as cash. But you won't have to give up day to day control of your business.

Where can I find an angel?
It's not easy, mainly because angels preserve their anonymity to protect themselves from being bothered by worthless propositions. The best thing to do is to approach the several marriage bureaux that try to match cash available for investment with cash-hungry companies. The British Venture Capital Association has very detailed information about business angels.