Business Angels

Business angels, or informal investors, are at the heart of economic growth. As stimuli of innovation the key to funding innovative companies lies in the hands of governments and policy makers. Policy makers have the ability to steer the right funds to the appropriate parties and people on the one hand. The government has the toolkit to amplify opportunities for angel funding, increasing networks for start-up firms, and capital investments from third parties on the other hand. Shifting government policy towards a more investor-friendly environment helps emerging businesses receive funding more easily, and effectively. This induces substantial cost savings for governments, while stimulating the economy at the same time. This paper explores the ways business angels are related to the creation of innovation and specifically the importance of angel funding to national and worldwide economies.