The interest for venture capital within the financial sector in Sweden has, according to earlier studies, been seen as a growing occurrence. Especially for what is known as informal venture capital. In modern times, private investors who engage themselves in small, unlisted companies, providing informal venture capital are to be known as business angels. They close equity gaps on the financial market by contribute financial capital to start-ups and are therefore an important participant on today’s market. The aim of this study is to generate further understanding and knowledge about business angels and their view on investing equity in companies who are still in their early development phases. Furthermore, the aim is to generate knowledge about business angel’s view on the risks they are being involved in with their investments in companies’ initial development phases. The methodology used is semi-structured interviews. The result is presented from the answers of three respondents, which mainly shows that business angels have to deal with different risks such as financial risks, business related risks and risks associated with the relationship between the business angel and entrepreneur. In conclusion, the risks mentioned previously are all essential for a business angel investment and need to be considered before and after an investment is being completed. Other studies also show similar results. An agency theory approach is also being used in this study to provide a further understanding regarding the risks business angels have to consider with their investments.