Like venture capitalists, angel investors look to finance companies that have the potential for a high return on investment, and typically seek an equity share in the company and a role in business operations in exchange for the funding. These investors are usually wealthy individuals, and they sometimes pool their resources to pursue opportunities together.

When pursuing angel funding, you’ll need to submit a proposal as well as information such as financial forecasts showing your company’s potential for growth. Research the investor needs ahead of time; angels often have tight parameters on what proposals they’ll fund, focusing on certain industries, states or regions, business stages, or other qualities. They also tend to fund only a fraction of the requests they receive.

The Angel Investors Network maintains a directory of nearly a quarter-million angel investors actively seeking to fund businesses.