Telford's former Waterworld chief Mo Chaudry outlines his plans to invest in the next generation
An entrepreneur who grew up in Telford has put up £5 million of his own personal wealth in the hope of inspiring the next generation of business owners.
Mo Chaudry has launched MOmentum Capital, which will offer equity investments of up to £250,000 to start-up and early-stage businesses which will then receive guidance from a team of volunteer mentors.
Mr Chaudry has a range of business interests but is most closely associated with the Waterworld aqua park in Stoke-on-Trent, which he owned for 26 years before selling it last summer.
This new £5 million war chest will initially target businesses in areas such as Telford and Stoke-on-Trent - places Mr Chaudry calls his "home territories" - but the long-term aim is to roll out the scheme across the Midlands.
It is open to founders and company owners from all backgrounds, with decisions on capital made directly by him and his team via a pitching process of shortlisted candidates.
The scheme has been likened to a cross between hit BBC show Dragons' Den and Bank of Dave, the nickname given to Burnley Savings and Loans which was set up by David Fishwick in 2011 to supply loans to small business.
Mr Chaudry told the Shropshire Star: "I am not very good at just donating money so this initiative is about investing in businesses. Loans are all very well but you have to invest to grow the economy and create employment.
"I am working in partnership with the chambers which will help companies get ready with a business plan and then create a shortlist of potential investees which will then be passed on to us.
"Alongside the capital, we will offer support and have an army of mentors who have done it in the real world. Businesses often fail because they don't have direction when something goes wrong and they don't know who to lean on for guidance.
"I'm hoping we can take this model and do it Midland-wide - that's what our mission is - but obviously we have to start somewhere so I'm focussing on my home territories of Telford and Stoke."
Mr Chaudry, 65, moved to the UK from Pakistan aged eight and was unable to read or write English but went on to make his first million before his 30th birthday and now owns a portfolio of businesses, with a net worth in excess of £170 million.
His family lived in Wellington where he attended Wellington Grammar School and New College Telford, and as a teenager he worked in the town's GKN factory as a cleaner.
His family eventually settled in Staffordshire and he went on to found M Investment Group in 1989. It owns a diverse range of businesses including M Club Spa and Fitness and Mr Chaudry has been listed among the 100 most successful people in the Midlands.
He also appeared on Channel Four's Secret Millionaire show. Looking ahead, Mr Chaudry said he saw this new investment initiative as a long-term project.
"This idea has been going around in my head since I sold Waterworld," he said.
"I want this to be a perpetuating fund. The plan is to reinvest and recycle the money for an indefinite period. I'm hoping this will inspire other people similar to me to do exactly the same thing nationwide.
"We could have a fantastic movement of entrepreneurs who are putting their private capital forward and using their business and life experiences to help create employment.
"As far as I'm concerned, if I can be a starting point, why can't this become a nationwide thing?"
Chris Plant, interim chief executive of Staffordshire Chamber of Commerce, added: "MOmentum Capital is exactly the kind of bold, place-based initiative that Staffordshire needs.
"This fund removes a long-standing barrier to growth and shows what's possible when local business leaders invest directly in their communities. We're really looking forward to working closely with Mo and seeing the impact this project will have on local entrepreneurs and organisations."
