This article develops the two forms of personalised network ties relevant in institutional transition and the evolution of business angel finance. Socially-embedded and institutionally-substituted network ties are characterised by rational conditions (e.g., cultural and institutional) rather than strength (e.g., strong/weak) and content (e.g., type of players). We argue that improved regulations render socially-embedded network ties more efficient and constrain the use of contracting institutions in selecting and monitoring angel investments when personalised network ties entail high level of trust and dependability, and that only socially-embedded network ties and improved regulatory institutions are key to further the development of angel finance.