Problem setting. The article examines the problems of the legislative definition of business angels, and also summarizes the terminology of this subject of innovation infrastructure. Also, in the article we try to find out the legislative consolidation of the term of “business angel” in the countries of the European Union, which further development and functioning is investigated. The importance of them is determined at the national level to consolidate in a special law the definition and procedure for the provision of investments by business angels. Analysis of resent researches and publications. Business angels are relevant, because for many Ukrainian entrepreneurs and companies there is a problem of financing. Thus, the study of this topic in their scientific works engaged in such outstanding scientists A.M. Lieutenant and LL Antonyuk, S. Valdaytsev, K. Pinyugin, O. Kashirin, O. Semenov, A. Karzhauv, O. Folomentyev, Benjamin J., Margulis J., Ammosov YP, Brian Hill, Dn. Power, N. Fonstein, A. Halytsky and other scientists. The target of research. There is a study of the essence and legal definition of the term business angels. Research of national and foreign private investors (business angels), as well as, outlining of reality of regulation in national legislation of the procedure for providing business angels to invest. Article’s main body. A business angel is a person who invests money in projects that often exist only as an idea. At this stage, a young campaign or entrepreneur funds of the development and implementation plan often have nothing to begin a startup, because there is nothing to interest serious investment funds. In this case, angels come to the aid of investors. It should be emphasized that investors, when they see a prospect in the idea, and believe in the future this idea will appeal to society and will find further improvement and development, business angels, usually, invest in this business the necessary and sufficient amount of their own funds. This is what distinguishes business angels from venture investors, who manages other people’s capital. So, it should be noted that they receive not only a share in the campaign, but sometimes even a blocking stake, what allows them to influence decisions made by the owner. In the research, Shevchenko O.M gives the following definition that business angels are private venture investors who invest their financial resources, as well as, personal time and abilities in little-known young innovative companies with the expectation of commercial profit. In addition, by providing start-up capital, private investors bring to the company the most valuable thing — professional and managerial experience (which is, usually, lacking in companies in the early stages of development), as well as, the necessary connections and reputational support. Conclusions and prospects of the development. Therefore, analyzing all of the above, the following conclusions should be next: firstly, the functioning of such a new institution in innovation law as business angels is an effective source of stimulating innovation by providing financial and information and communication support to entrepreneurs; secondly, it should be emphasized that further development and implementation in Ukraine requires its own legislation in a special Law of Ukraine.