Starting a business is one thing. Finding capital and partners who believe in your idea is completely different.
When a startup goes in search of an investment, it is usually found between two extremes: banks that require insurance that beginners often do not have and risk funds that wait to prove market viability. It is at this initial and most vulnerable stage of development that they enter the scene business angels.
What are business angels?
Business angels are experienced individuals who invest part of their assets in new companies with growth potential.
But unlike classic investors, business angels usually invest time and attention with money, i.e. act as mentors, advisors and development partners. They are interested in specific sectors where they have experience and see capacity for development. They are guided by intuition. They listen to the vision, energy and potential of the team and what value and innovation a company can bring to the market. They invest earlier, when the risk is higher, but also the potential for growth is higher. Business angels are aware that they may not be able to count on the return on investment immediately.
The concept of business angels dates back to the theatrical jargon of the early 20th century, when the wealthy donors ‘angels’ saved risky theatrical productions. Professor Wetzel formalized the term in 1978 to describe private investors investing their own capital, knowledge and contacts in startups.
What is their role?
Business angels play an important role in the economy. In many countries, they represent the second largest source of external financing for start-ups, after family and friends. They can be a key milestone in the development of startups as they allow for faster growth and additional capital without the need to borrow.
But their role is not purely financial. Experienced business angels also bring mentoring, business contacts and support in times of crisis, acting as partners who know the challenges of growth and market dynamics. In addition, their participation often gives the project additional credibility, which makes it easier to attract new investors or business partners. It is no coincidence that startups who receive angel investment grow faster, survive longer, and provide additional sources of capital more easily.
How to attract them?
It is legitimate to wonder what characteristics should be attached to an ‘ideal’ project in which someone will invest. Undoubtedly, there are some requirements that can make a startup more interesting in the eyes of investors, namely:
Good performance – It is important not to forget that a good business idea cannot happen on its own! The implementation is crucial for the realization of the project to its full potential. Before investing money in a startup, business angels must carry out assessments by analyzing concrete stages of development that can confirm the viability and scalability of the idea.
Business plan – This document is not just a formality but a key tool to turn the idea into a sustainable strategy. A quality business plan clearly highlights the strengths of the project, explains its market value and competitive advantages, and builds investor confidence. It is in this step that Porin can be your strong ally. Thanks to many years of experience in drafting business plans and investment studies, We help entrepreneurs to present their ideas clearly, concretely and convincingly. Let us know.
A good team – A business angel invests in people as much as in an idea. Experience, knowledge, mutual cooperation and a shared vision of the team are key factors. Team enthusiasm, will and determination can convince the investor that the idea is worthy of support.
Networking – Building relationships and creating a network of contacts is key to exchanging ideas, opening opportunities and finding the right people. The network often precedes the investment, so it is important to be present and active.
In addition, several concrete steps can significantly increase the chances of attracting business angels:
- Prepare pitch deck – present your idea, market potential, team and growth plan clearly, briefly and convincingly.
- Have a business model and MVP – business angels want to see that the idea takes shape and that there is already a concrete value (minimum sustainable product).
- Develop a growth and revenue plan – without it, there is no confidence in long-termism.
- Participate in the startup and pitching events – this is where investors can spot you.
- Build relationships and prepare for due diligence – the verification process is detailed and good preparation shows seriousness.
- Contact networks such as CBAN and CRANE, where you can reach angels interested in your sector.
All this together sends a message to investors: We're ready. We have knowledge, structure and vision. And we're looking for a partner who shares our enthusiasm. There are good opportunities, but preparation is the key.
Key Angels in Croatia
Many angels act individually but also through the networks of angels. In Croatia, these are:
A new national network was established in 2025 with the aim of bringing together investors and startups. They are focused on technological projects in Croatia and the SE Europe region. Founders Mihovil Barančić, Renata Brkić and Mirna Marović create frameworks for investment, mentoring and networking. CBAN recently signed a strategic cooperation agreement within the initiative Adriatic Investors. The initiative was launched this year at the PODIM conference in Maribor. CBAN and Business Angels of Slovenia They joined forces to unite Balkan investors from Croatia, Slovenia, North Macedonia and Albania in one organisation to boost joint investments, business creation and job creation across the region. This cooperation directly exploits the strong technical and entrepreneurial potential in the Balkans.
An experienced network established in 2008. He regularly organizes pitch events, networking, diplomatic breakfasts and startup brunch. They are still active in the search for good ideas. President Davorin Štetner, active in EBAN, manages activities with a total of 20-30 investments per year and an average annual investment of around 2 million. €.
European Business Angels Network
At the European level, particular attention is paid to EBAN (European Business Angels Network). It is a leading European organisation established in 1999 in cooperation with the European Commission and EURADA. Today, EBAN represents more than 100 members from over 50 countries, including national networks, individual investors, venture capital funds and other organisations active in the early entrepreneurial phase.
EBAN acts as a non-profit association whose mission is threefold:
- networking of business angels and investors through international events and conferences,
- exchange of knowledge and best practices among members, with a view to strengthening professional standards,
- representation of the sector before public and governmental institutions, including European institutions.
The EBAN community counts more than 10,000 individual business angels, and in addition to operating across Europe, the network is increasingly involved in fostering regional initiatives and local investment ecosystems.
Literature and sources for more information about business angels
- Handbook of Research on Business Angels – Hans Landström & Colin Mason (2016) – 30 years of business angel research, their role, market evolution and support policies. It offers recommendations for future business angel research.
- Angel Investing: Matching Startup Funds with Startup Companies – Mark Van Osnabrugge & Robert Robinson (2000) – A practical guide for entrepreneurs and investors, describing the investment process; due diligence, the structure of investments and practical examples.
- Angel Investing – David S. Rose (founder of Gust Platform) (2014) – A popular and readable handbook that explains, through real examples and recommendations, how to successfully invest in start-ups and actively participate in the development of portfolio companies.
- Angel: How to Invest in Technology Startups Jason Calacanis (2017) – Experiences of one of the most famous angels in Silicon Valley: how to identify potential investments, what to expect and how to build a successful portfolio .
- Encouraging the activity of business angels to support the growth of small and medium-sized enterprises European Commission (2015) – A guide for policy makers, stakeholders and managing authorities, especially at regional level, who want to support growth-oriented SMEs and start-ups by encouraging the activity of business angels at their level.
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