In contrast to venture capitalists, business angels are more inclined to invest in startups and early-stage businesses. They may also be more flexible in the way they finance a business because they will have a less rigid time frame for exiting a business (i.e. sale or IPO).When it comes to the type of business they might invest in, angels and venture capitalists are similar. They look for business that that have good growth prospects –you’ve a greater chance of piquing their interest if your business occupies a niche market, has a new product or has a clear advantage over your competition. And you’ll need a good business plan.