Keywords: sources of financing, entrepreneurial finance, startups, business angel, business angel investment


The article aims to identify limitations on the activity of business angels (also known as “angel investors”) in financing startups. Business angels are the main source of external capital for startups, aside from family and friends. However, the degree to which they are active in the economy, in Poland and in other countries, is bound by certain restrictions, a number of which are related to supply and demand. The article seeks to deepen the theoretical considerations of these limitations from the perspective of demand and supply constraints. The study demonstrates that on the demand side, the greatest limitations that hinder business angels from financing startups are overly-complicated tax laws and a lack of tax incentives for investment activities. On the supply side, it is the failure to meet investment criteria imposed by business angels. Based on the conducted research, it can be concluded that without the interference of public institutions it will be difficult to effectively reduce the limitations on the activity of business angels.


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How to Cite
Cegielska, E. (2020). LIMITATIONS ON THE ACTIVITY OF BUSINESS ANGELS IN FINANCING STARTUPS. Acta Scientiarum Polonorum. Oeconomia, 19(3), 5-12.