Financing an entrepreneurial venture is one of the biggest challenges for any individual or organization that engages in entrepreneurial activities. Sources of financing for an entrepreneurial venture are equity financing, debt financing and state financing. In this master’s thesis, the focus will be on equity financing through business angels. Business angels are individuals or organizations that offer capital for financing new entrepreneurial ventures. They are ready to take the decision to finance an entrepreneurial venture already at an early stage of its creation, which is also the most risky in terms of its further development. The purpose of this master’s thesis is to analyze the benefits that financed companies have from this form of financing, but also the opposite, benefits for business angels. In addition to financial benefits, the qualitative characteristics of financing will be analyzed with the aim of better valuation of the analyzed companies. The focus will be on the situation in Croatia and the development of this form of financing to this day. In the last part, selected companies that were financed by business angels gathered in the Croatian Business Angels Network (CRANE) will be analyzed. Based on a selected sample of companies financed by business angels, investment trends and results of such investments in Croatia will be analyzed, too. In addition, the focus will be on the investor and his path from the first entrepreneurial activities to profiling him as a business angel who invests in companies in the early phase of their life cycle.