Business angels emerge as alternative sources of funding. Although the concept itself has been around for some time, the growth trend has only been recorded in the last ten decades. In addition to investing their own funds, they also invest their knowledge, time and business contacts. They are prepared to invest in risky business ventures, and most often enter the local level. Most often, 5 to 15 percent of the total amount of own funds is entered, both in case of failure, and they can still live normally and act as individuals or in a group. One of the significant features is that business angels have explored funds that are in principle non-refundable. In return, they receive a certain share in the company that sells it and generates income. Business angels are most often male persons, highly educated, between 55 and 64 years old. They also have a significant entrepreneurial career and have over 15 years of investment experience. This paper will explore the characteristics of business angels, show the advantages and disadvantages of financing them, as well as explore the state of the business angel market in the Republic of Croatia and Europe. The analysis will explore the presentation of CRANE's investments in the period from 2015 to 2019, and will examine examples of business angels' investments in the Republic of Croatia.