The five-part series will see budding businesspeople fighting it out for a £100,000 investment from 'The Angel' John Caudwell, whose company owns mobile phone shop Phones4U.
Each day, six contestants will be invited into the studio to take part in a series of challenges.
The rounds - including individual tasks, head to heads and group challenges - will test the hopefuls on their drive, ambition, passion, resilience, commercial intellect and leadership.
One contestant will be eliminated in each round until there is a winner, who will receive £100,000 of Caudwell's own money for their business. Only then will Caudwell find out what he is investing in.
"Success can be down to the individual and his or her qualities, and he ability to deliver against an idea rather than the idea itself," Caudwell said.
"Bearing that in mind, the show provides a fantastic opportunity to combine analysis of business people's abilities with an opportunity to help drive young entrepreneurial companies forward but, best of all, it creates a vast opportunity to generate cash for charity.
"Any profits, and all The Angel's fees, will go to my charity Caudwell Children (@caudwellkids), which helps sick and dying - but massively inspirational - children."
Meanwhile, Sky1's director Stuart Murphy described the show as "populist, audacious and life-changing", adding: "This is the first business show where the investor really has to put their money where their mouth is. Investors all say it's about the person and not the business, and for the first time we're going to test that theory."
Production for The Angel will begin immediately and members of the public who want to take part can find out more at www.sky.com/theangel. The show will air on Sky1 in the summer.
> Read more TV news