The paper analyzes financing through business angels. Business angels are individuals who want to invest in the early stages of a business venture. These types of investments are risky and usually do not represent more than 10% of the angels' portfolio. When it comes to Croatian business angels, it should be emphasized that very little is known about this group of financial investors. This area represents a significant research challenge due to a limited understanding of business angel activities. Business angels have been operating in the Republic of Croatia for a long time. The official start of operations is related to 2008 and the Croatian Network of Business Angels (CRANE). It is a non-profit organization that has so far invested over 40 million kuna in various startups. From 2017 to 2019, the Republic of Croatia recorded the activities of 35 "visible" business angels. In the observed period, the total value of investments amounted to EUR 7,590,000. The growth of investment of business angels in the Republic of Croatia is optimistic, but it should be viewed in a broader context. That is, the underdeveloped domestic financial market (dominated by bank loans) has a restrictive impact on financing needs in the most risky phases of entrepreneurship and development. The lack of business angels has been cited for years as the biggest obstacle to intensifying entrepreneurial activity.