An angel investor is a person who invests in a new or small business venture, inventions, patents providing capital for start-up or expansion. Angel investment is a form of equity financing–the investor supplies funding in exchange for taking an equity position in the company. Equity financing is normally used by non-established or new businesses that do not have sufficient cash flow or collateral with which to secure business loans from financial institutions. Angel investors fill in the gap between the small-scale financing provided by family and friends and venture capitalists. Attracting Angel Investors is not always easy, but there are things you can do. Beyond providing financing, angels help you meet other smart business people who can help you grow your business, mentor you, and teach you. Most angel investors, whether or not he or she funds you, has an extensive network of people who can help you in many other ways. While venture capital dollars are shrinking, angels investors are growing in number each year.