How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Money Rehab with Nicole Lapin
Deep Dive
Why did Jaclyn Johnson build Create & Cultivate with the intention of selling it?
Johnson had prior experience selling her first company and realized the financial benefits of selling a valuable business. She saw an opportunity to create a sellable company in the women's career space, which was less saturated than beauty and fashion media.
How did Jaclyn Johnson initially fund Create & Cultivate?
Johnson and her partner invested $50,000 and $250,000, respectively, as loans to the company, which they paid back within a year from profits.
What was Jaclyn Johnson's salary during her time running Create & Cultivate?
Johnson paid herself a salary of $100,000 for ten years, reinvesting most of the profits back into the business until a CFO advised her to increase her compensation.
How did Jaclyn Johnson's angel investment contribute to her wealth?
Johnson made a $10,000 angel investment in a company that became a unicorn, resulting in a seven-figure return that funded her second house.
What is Cherub, and how does it aim to democratize angel investing?
Cherub is a platform that connects angel investors with entrepreneurs using dating app mechanics. It aims to simplify the angel investing process and increase the number of first-time angel investors.
What sectors does Jaclyn Johnson believe are promising for new business ventures?
Johnson highlights AI and productivity tools as sectors with potential for high returns, especially those that improve workflow and productivity in remote work environments.
How did Jaclyn Johnson handle the personal challenges of being a successful entrepreneur?
Johnson maintained long-term friendships, prioritized her health, and sought professional coaching to balance the demands of her career with personal life.
What advice does Jaclyn Johnson have for women navigating the pressures of beauty standards?
Johnson advises focusing on self-care practices that make one feel good without succumbing to trends or fads, and to embrace aging gracefully while maintaining a healthy lifestyle.
What was Jaclyn Johnson's experience with selling Create & Cultivate to private equity?
Johnson sold Create & Cultivate to private equity in 2020, but later bought it back in 2023. The process involved negotiations and overcoming the stigma of private equity firms selling back to founders.
What is Jaclyn Johnson's big money tip for listeners?
Johnson emphasizes the importance of diversification in investments to balance risk and potential returns.
- Sold first company at 26, angel investment at 29
- Create & Cultivate: sold for $22M, bought back later
- Bootstrapped Create & Cultivate, initially invested $50k
- Paid herself $100k/year for 10 years
- Prioritizes personal wealth alongside business growth
- Sold to private equity in 2020-2021, stepped down as CEO
- Bought Create & Cultivate back, Marina Middleton is now CEO
- Emphasizes diversification in investments (real estate, angel investing)
Shownotes Transcript