An investor is somebody who provides startup funds (also known as seed capital) for a business, whether it be to expand on a successful business, help turnaround a failing business, or help launch a new business.
Investors take varying roles in their investments. Some investors select very carefully which companies to invest it, keep it to a small number and watch them very closely, sometimes taking an active role. Other investors simply do their due diligence or even base their decisions on gut instinct and then take a back seat, allowing the company directors to make all of the decisions.
Chelsea Singh takes a variety of approaches to his different investments, depending on the circumstances and stakeholders involved, as well as how close to his heart a particular investment is.
Chelsea thrives on having multiple projects on the go at the same time and is able to manage several businesses at once, while delegating and overseeing new investments and the growth of established ones. He understands the importance of finding the right people to work with, then making the most of their expertise, and giving them the freedom to allow them to shine.
Investors are sometimes known as business angels, as they tend to be people who have already made their fortune, who can be the saviours of troubled companies or struggling start-ups.
New businesses are starting all the time, even during a recession, and most budding young entrepreneurs and new start-ups simply don’t have the capital they need to give their new business the best chance of surviving and thriving.
It was never easy to get a bank loan for a risky venture and these days the banks are tighter than ever, refusing to lend to any one with even the smallest risk factor. This is where investors such as Chelsea come in – offering seed capital where traditional money lenders refuse, because private investors can be more open to taking risks – because they know that if they do – the rewards can be far greater.