The Economist writes:
It has become harder in recent years with the opening of what has been called the equity gapa scarcity of ready sources of outside financing for the smallest companies. This matters in an age that has recognised the part new businesses play in invigorating economies. Governments everywhere are desperate to help entrepreneurs start the companies that will create new jobs and new wealth.
Which is where the ragtag army of business angels comes in. Professional venture capitalists get all the kudosand most of the moneybut the informal choir of business angels plays a large role in starting the innovation machine rolling. Between them, the angels form an unofficial and little-known capital market on which the future is built.