Jaclyn Johnson
Appearances
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Exactly.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And also, venture is not as involved in your business, depending, obviously, but usually they're pretty hands-off or maybe a little bit involved on the board, whereas private equity is very much in your business.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes, sold to private equity. It was a really interesting time. It was end of 2020, 2021. Obviously, the world was recovering, trying to figure things out. At the time, obviously, we were making a hard push into digital and into membership. And so at the time, I was like, I'm not the right CEO to run a digital media business. I'm an experiential person. I obviously love community.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
That's where I really thrive. I also had run the business for 10 plus years. I was exhausted. I was tired. And so it was well known amongst the private equity firm and the team that I was going to step down as CEO when we found a replacement. So we found a replacement. It was amazing. She came in. She had that exact experience in the digital media world.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And I took a step back for probably two years and was on the board, obviously retained a little bit of equity, but really was not involved in the company, which is, as you know, it can be very bizarro. What did you do? It was really odd. It's so weird to do something for so long and then to wake up one day and not do it. It's the strangest feeling in the world.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
But I basically I bought a house in Napa. I started gardening. I started cooking. I started getting my sommelier accreditation. I started just doing hobbies. I think what normal people do, working out, just enjoying life for a little bit. And then I got a little antsy, as you do. And so I ended up going to run a $20 million fund for a family office.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
wait can you explain what that means yes the family office family offices are typically high net worth individuals or families that create their own essentially like little mini venture fund where they invest in different companies and oftentimes are involved or their passion projects things like that so people who want to create more wealth amongst their family they'll create a family office and so this family office was based out of chicago and they really wanted to get into the female founder space which obviously is my jam was it out of
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So I think it was a combo of both. I think they typically had been in less sexy industries, insurance industry, blah, blah, blah, blah, and technology done extremely well. But they wanted to tap into the consumer space a little bit more.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
learn more about it and so for them this was perfect for me and so i was able to bring a lot of deal flow and also being on the venture side was really interesting i learned a ton about diligence because they obviously had a best-in-class team that was doing all their diligence for all their other projects got to work with really incredible analysts and really understand what it takes to diligence a deal and what to look for and all those things that was really fun so i did that for a little bit and then ended up launching the blueprint which is a mastermind with ali webb and marina middleton
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
after much convincing from Marina, because I was like, I don't know if I want to get back into coaching and events and things like that. And she basically convinced me to do it. And so that was what I was doing when things took a turn and changed. Yes. So end of last year, I'm doing the blueprint and Essentially, it comes to light that there's interest in selling, creating, cultivate again.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So this was way quicker than we had ever imagined. And it was a surprise, I think, to everyone on the team, on the board, et cetera. And so initially, my reaction was, OK, like, who can we sell this to? That makes sense. That's going to give it a good home that like, you know, obviously, I know a lot of amazing female media centric media companies have a lot of relationships there.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And also there was a lot of people interested in buying us. So that's where my brain went immediately. And then essentially, as things were happening, I went back to Marina, who was my partner on the Blueprint, who is very young, very hungry, did an amazing job with the Blueprint year one. We were able to do seven figures year one. It was amazing.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And I called her and I was like, this is what's happening. I want to throw this out to you and I this is this might be crazy, but what if we bought Create and Cultivate? She was like in a minute, like immediately. Yes. And I was like, no, no, no. I need you to think about this because I don't want to go back and be the CEO.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
But I know there's so much value there and I think we could put our own spin on it. Looking at what we've done with the blueprint, I feel like there's like major opportunity for smaller, more intimate events. And she was like, no, 100% I'm in. At that point, I send this email out. Essentially, that's like I'm interested in buying it back.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
which sparks like a lot of different emotions amongst the private equity firm. And then of course our lender and then the existing CEO. And so honestly, over two months of just like negotiations back and forth at falling through it, coming back at like all the things that happen when you're in the midst of an M&A kind of transaction.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
The negotiations like private equity never likes to sell back to the founder. Really? I didn't know that. Why? Because typically, I think it's considered a failure on their end, right? So when you think about going back to that, it doesn't exactly make sense. I'm sure in some scenarios it might, but I think for them, it doesn't look good to their LPs. Like, it can be perceived as...
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
the optics aren't great also there was like a want to sell it to a bigger media company and things like that which obviously makes sense too and i was supportive of the best possible outcome right i wasn't like gunning to mess up any deals that they might have had but i also was like i do feel very strongly that i'm the best person to take this back because of a few different things one to your point it's a community-centric business yes on paper there's a p l and there's revenue and there's this at the end of the day there's people and people related to that business
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
in part because of me and my journey in building it. And so I think it's really hard, whether it's a strategic acquisition or a private equity acquisition or any type of acquisition, it's very challenging when you're so connected to a brand that was built around you and your vision and your story to then sell it. It's just hard. It's a hard business to then grow and build separate of that person.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And I think they didn't realize that or maybe they thought because we were going more digital, but then events came backers that kind of go into it. Right. So basically, net net through the negotiations, finally, it became clear that it would basically come back to me, which was very exciting.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Totally. It was weird because it was like, again, I had already started another company, Cherub, which we'll talk about. And Blueprint. And so I was like, this feels crazy, but... But it weirdly feels timely. Like I am a big believer in everything happens for a reason. And I think like meeting Marina, launching the blueprint, like all those things led up to that moment.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Because truly, if Marina was not in the equation, I wouldn't have done it.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
She's the CEO now. Yeah. So basically, it was this like kismet reality that I think happened for the right reasons.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
yeah so basically we exited for 22 million dollars that was the valuation that we exited at which is amazing i'm very proud of it however our valuation should have been much higher but due to covid basically they did a blended ebitda for the the years so it was a little different in that way typically i would say most event businesses would have exited based on a four million dollar ebitda in 2019 for 40 to 70 million depending
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Very happy with the way it ended. I owned a majority stake, but I can't tell you the full amount. But I owned a majority stake because obviously we had no investors outside of myself and my partners.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, they own like 1% of the company.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It's yeah. So it's just a totally different strategy. So like selling a business. Yes. I talk about this all the time. Twenty two million dollars is like I'm going to get the majority of that cash right in that transaction because I own the majority because I didn't give up equity while raising money.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Whereas founders, again, who are going to have these billion dollar exits need a lot of money to get to that mark in general. So they'll raise a lot of venture capital and therefore dilute themselves. So there's different ways to view equity and there's different ways to build businesses and there's different ways to exit businesses.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I actually have a good friend who I think her exit was like 500 million, maybe 450 million. And we ended up making around the same amount of money. Is there any right or wrong way to do it? No, not necessarily. It really just depends on the type of business like you want to build.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
no it's not at all and also it typically is you don't know if it's cash you don't know if it's equity you don't have to to roll equity there's earn outs as part of it and mine had all three it's interesting because a lot of people were like wow congrats i'm making 22 million dollars and you're like no not really and again after taxes it's like even more but i feel really happy with where i'm at and like as i mentioned the sale of crane cultivate was by far my biggest windfall and obviously has set me up for a life that i never thought i could have and is amazing
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
However, it was the decisions I made leading up to that that also has increased my net worth over time. And that's like the real estate, the angel investing, obviously bringing on a wealth advisor. All those things are making my money work for me. So it was not just, yes, I had a lot of eggs in that basket, but I also diversified along the way, which I think is important.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
That is my story. I hope that continues to be my story.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I can't tell you that.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I feel really good with where I'm at. I think financial security is so important to me. I think I've worked so hard for this moment in my life and I do feel very fortunate. My life didn't change so drastically. My real estate changed, maybe the car I drove changed, the trips I take changed, but like nothing was so overnight completely drastic for me that it feels really good.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Our new philosophy is around launch to legacy. And I think the reality is, is like, we've been speaking to the launch side of the business for a very long time, which is like starting a business, growing a business, but we've never really done the full circle of like,
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
do you exit a business what's your legacy look like what's leadership look like like it was really all about just like getting it off the ground yeah so now we're taking this launch legacy approach and we do that through a couple different ways one is through masterminds where it's really that like intimate one-on-one style training with experts whether it's me or ali web etc we also have retreats for seven eight nine figure founders where you're really in the room with people who are at your level
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Which I think for me, early days of Create and Cultivate, it was all about the speakers on the stage, right? And you're like sitting in the audience and you're listening to amazing people, which is great. It's inspirational. It's awesome.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
What I didn't really factor in was like all the women in the room where with Blueprint, with our retreats, like all the women in the room have a lot of value to add. And so it really becomes this like mind meld or what they say mastermind of women coming together and giving advice. Like I learned from people in the room, which is awesome. Like something that I never had experienced.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So that's part of it as well. So all these intimate styles, specific events. On the flip side, we're also launching what we're calling Coachella for Career Women, the largest festival for ambitious women next summer here in Los Angeles.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It is. And it's totally different problems and issues than when you're starting out. And I think that's the thing that was really challenging. Being at the seven-figure founder retreat was really interesting where people were like, what's my exit plan? How do I find the right number two? What does this look like? And how do I grow my personal wealth?
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Those are the things you're worried about at that level. Where six-figure, you're like, how do I get to seven figures in revenue? Totally. How do I like do this out on the ball on a budget? Like it's a totally different set of problems that require different solutions.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, it has evolved over time, but essentially Create & Cultivate is the largest media and events company for ambitious women. We're most well known for our large-scale conferences, which we host all across the country and hopefully world, where we bring together CEOs, content creators, and celebrities to talk about business.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, I think to your point, like one is like you get fewer and fewer. So people that can understand what you're going through as you're building become very small.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
i feel really lucky that i had a really great coach while i was growing the business towards so important i was like i don't know about coach i was a little on the fence and i truly thank goodness because i think a lot of people tend to just talk to their therapists about business stuff you need a coach you need both no totally you do need both that's right no i'm like why when i was running my company and it was really big i was like how am i spending like three hours a week being helped
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
no but it really in hindsight it could have been at a minimum but so many things go to the wayside when you're building like your health fitness friendships like i missed weddings i missed you miss a lot right so there's things like that that you're definitely giving up along the way and then i think it's really challenging like i was married for a long time i'm now divorced and i think obviously i think being married was helpful while building my career and then now being divorced and being successful it's like
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
insane to date. It feels actually crazy because I think there's a lot of not jealousy, but a lot of insecurity, I think is the right word. There's a lot of insecurity about successful women, even if the men that you're talking to have the best intentions and are like, I love women. I'm so excited for it. The balance is really hard and tricky to navigate.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Is it like the masculine feminine energy cycle gets disrupted? I think there's also just like hetero norms of wanting to pay for things. I think it gets really complicated around specifically vacations and real estate.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
These are the two vacations. It's really. Because if you take a, I want to take a nice vacation. Like me too. We spend on travel, right? This is something we spend on. And so as a partner, they can never surprise you with a trip because it's not going to be on the level. Then you feel bad because you're like, I don't want to like make you spend on this type of thing because I know you can't.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So that's when things get tricky. And same with like real estate where it's like you move in together and They can't possibly pay the mortgage or whatever. It becomes this challenging thing. And then you can be like, you do 20%, I'll do this. And then it gets like unsexy and not fun. Were you in my relationship, Jacqueline? It's not cute. It's not cute. Wait, so do you have the answer?
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
You have to find the right partner, I think, who really... either is on your level or is like nowhere near it's one or the other like that's right someone told me once and I don't know if this is true but they're like you either need a date really young or really old really rich or really poor like it was like one or the other I love
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah. Or just starting out in their career where it's the advice doesn't feel condescending. It feels like exciting for them because they're just starting out. Whereas they're not on like year five trying to make it work. And it's becomes like all day. And again, I don't know if that's the answer. I still don't know. I've not found out like what the secret sauce is.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Gosh, I don't know. I'm trying to just get a date. I feel like I... have taken a backseat lately. I was early days was like on the apps, doing the thing, trying it all after your divorce, after the divorce. Yeah, you get but you're trying to get back into it. And then you start to realize how much of your time it's taking up.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And I know that's tough because I think truly one of the only ways to meet people is being on the app. That's just reality, especially for me. I'm like, I go to, I travel a lot, but I travel for work. And you go to events for women. I run events for women. Truly, even I think back, I'm like, I don't think I met a man in the last 10 years.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Like private equity was the only time I ever worked with men. I was like, never happens. But I don't go out a lot. If I do, it's like my close friends, we get dinner. I don't organically meet people that often. However, I feel like I've been challenging myself to when I travel, or I meet a friend for dinner, try to go a little early, try to sit at the bar, try to be more open to meeting people.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
This is like my new IRL at the bar at the bar, just like chopping it up. No, totally. I try to just be in the world a little bit more than I would be normally. But I'm trying not to do the app thing. I just I think it's just like disappointing and really challenging and too time consuming. I don't want to be on my screen all day.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes. So I hired a matchmaker. I don't know, girl. I feel like it's also disappointing.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Listen, if I have a success, you will hear about it. Trust and believe. But yeah, I also don't think my person and this is like a broad statement is in Los Angeles. So I think that's interesting.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I had sold my first company. So I had a company before Create and Cultivate. It was a marketing events and influencer agency. And I, again, when I started that company, I had no idea about selling companies. I had no idea that company would even be sellable. And so essentially when an offer came through to acquire that business, it was a whole new world for me.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, I actually, it's one of the things I'm most proud about is most of my friends are 10 years plus, have been in it since the beginning, have known me when I was struggling, have known me when I'm successful. And we all don't live in the same place. We all find each other and travel and things like that. So I'm really proud of that. There's been friendships that have grown apart.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Obviously, as time goes on, I think that's normal and natural. But yeah, I'm really proud of the friend group I have.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I think it's easier. I think it's just this weird inherent thing where it's sometimes I'll treat my friends. We all are just like, even Steven, life's going to work out. And I'm like, yeah, one day you'll be like rich and say like it all. I think women just have like that natural. It's so much easier. It's so different. I know it's so different.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
be worth money with your friends there's no stakes no no no no and just like buy me a piece of chicken yeah yeah no totally the stakes are low but i think that comes with longevity i think like newer friends that's maybe a little trickier to navigate hold on to your wallets money rehab will be right back and now for some more money rehab
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So it's really interesting. I've definitely been grappling with this a lot. I think with the dawn of the TikTok disclosures of all the things we're getting, all the work I'm getting done, like all these things. I definitely because I'm 39, I'm turning 40 next year. Like I'm definitely in that phase of do I need to get all this stuff?
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
There's this really funny TikTok of this girl who is basically like lip tape, buckle fat. Oh, yeah. Like taping or mouth tape, buckle fat. She just starts naming all these things like spray tan Pilates. I'm like, women are so fucked. The amount of stuff that we have to do to just exist in the world, in the narrative is actually crazy.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And I think for me, I've taken the approach of one is I take care of myself in a way that makes me feel good, but I try not to buy into trends or fads. I'm also like such a baby. Like I'm so scared of everything. Yes. For the pain, for something going wrong. I don't have a lot of, I'm not a risky type person. I have friends who are like, oh, Morpheus, whatever. I'll get that. I'll get this.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I was trying to figure out what does this look like? What is the financial piece of it? What's due diligence? So I was basically a masterclass in selling a company and kind of doing it on my own. And after I sold that company, I realized like, oh, this is how you make real money as a founder, obviously creating something that someone wants that's valuable to that person. So I got a taste for it.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I'll get that. And they look amazing. And it goes so great. So I'm like, Why? But I think for me, I'm like a little attached to the idea of aging gracefully. Yeah. And also just wanting to look different. I think a lot of women are just starting to look very similar. It's wild, right? And beautiful. It's like the same face.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It's the same face. And I miss little quirks that people character. Yeah. Right. And so I'm holding on to that. Now, that being said, talk to me in 10 years. Totally. Because it gets real. Yeah. I might be getting a facelift and I will report back.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I definitely get down on myself. I definitely look at photos. I try to also... remind myself you're a human being. This is what you look like. I don't know. It's tough. I'm the same way. I'm guilty of looking at photos and being like, oh, please don't post that. Or I hate this. I filmed something the other day and I got my arm fat in the back. I was like, oh, my God. So we're so hard on ourselves.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
We're the hardest. And I think for me, it's really just about being as healthy as possible. I feel really good right now because I feel really healthy. I work out. I eat well. I have fun. I drink. I whatever. I have a good time. I'm not limiting myself into a place where I'm just constant deprivation. I want to live a full, fun life. I love food. I love like going out.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I think it's finding that balance for yourself and feeling good and being who you are.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Totally. So angel investing is really when you invest in the private sector. Right. So you personally as an individual or maybe you have a little family office or whatever it is. Right. And angel investing, I think people are like, oh, I need to invest hundreds of thousands of dollars. It's not the reality. Typically, you can invest 5K, 10K, 15K.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And if it's an SPV or a special purpose vehicle, sometimes you can invest as low as $1,000.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, exactly. So I actually launched a company and I'll tell you the origin story, but it's called Cherub. It connects angel investors and entrepreneurs using dating app mechanics. As an entrepreneur, you can go on, build your beautiful date
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
a room tell your story obviously put what you're looking for in angel investors your check size all that good stuff on the angel investor side you can join and talk about what are your mandates what you're looking for your personal expertise and what you can be helpful with when it comes to supporting a founder and then we'll match you based on that criteria since we've launched over two million dollars has been deployed to founders from chair angel investors which is amazing i started angel investing in 2011 maybe a little earlier so
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
writing my first checks into different female founded companies. And since I've grown my portfolio to 25 companies, so one of the companies that I invested in was a $10,000 check that, you know, early, early friends and family around and that company ended up becoming a unicorn, which again, not normal one in a billion chance.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So when I was launching Create and Cultivate, which had already existed pre the acquisition of that company, I realized like, wow, this is something that has real opportunity to sell. At the time, most women's media companies were about Beauty, fashion, lifestyle with a sprinkling of career, whereas we were all careers.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So I want to say the valuation was $10 million, something around that. And so basically, the company actually didn't exit. I got a tender offer from investors. To buy your stock from you, even though there wasn't a sale of the business. Exactly.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So sometimes when companies are prepping for IPO, they'll do a tender offer where they'll be like, we're going to give you a good price for your shares because they think they're going to get... more, but it dilutes your risk, right? This was 2019 when that happened. And I ended up exiting for seven figures, which was amazing.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Super exciting. So that bought my second house in terms of the real estate. But I remember everyone being like, Creighton Cultivate must be doing so well. And I was like, no, I mean, yes, but this is actually from an angel investment. Yeah. So it was funny because I've had a few different exits now, not at that level. Thank goodness. Please bring it on. but not at that level.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
But I, yeah, it's been really fun and really rewarding. And the way this sort of happened was I am like a well-known angel investor. So I get pitched all the time for investment, but I also do a lot of mentoring. I'm on intro and things like that. And all these founders are like,
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
need angel investors where are the angel investors and i like linkedin i don't know like i know people but it's this like insular world but the bet that we're taking at cherub is that there's actually a lot of angel investors out there that would invest they just aren't getting deal flow and so my co-founder angeline was that person she works at a yc back company that was acquired by a larger company and then went public three months later she had a great windfall did really well for herself and was like i would love to angel invest
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
But no one comes to me. So there was problems on both sides. So we're like, let's create something to solve this. So the way we're thinking about Cherub is the way I think Coinbase thought about crypto. Crypto, previous to Coinbase, really hard to find, really difficult to buy, hard to know what's right or what's good or what's bad.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And then Coinbase comes in and says, connect your PayPal and you can buy Bitcoin. Like even transaction mechanics. Exactly.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Exactly. It's complicated. There's a million different places you're storing stuff. You're on Doxzen, you're on Dropbox, you're on Carta. You're like, oh my God, this is crazy. So basically, that's how I see Cherub is really democratizing the angel investing process, making it really smooth, really easy, and also giving you the education for newer angels. So
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
One of our goals for the platform is to increase the TAM of first-time angel investors. So it's been really exciting. Of the $2 million, 40% was their first check, and these are accredited angel investors.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yay!
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Exactly.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It's super high risk. Yeah. Cherub is for everyone, men and women. Everyone always thinks it's just for women. But it is true. But actually, there's been a massive increase in women angel investing in the last five years, which is awesome. But yeah, it's inherently risky. But also buying crypto is inherently risky. Diversification is inherently risky. Yes, you can put money.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So we had this big opportunity, I thought, to create something that would be very much acquirable.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And I think diversification is the spice of life. You definitely want to be in the stock market. You definitely want to buy a house. You definitely want to do all the different things. You don't want to over index on anything, but you should diversify. And especially if you believe in a founder, you provide a specific expertise or value to that founder. They're more likely to be successful.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I love food and beverage. I do think there'll be a lot of like consolidation further down the line. My last investment I made was into intro, which is the platform where you can book people like us on the app. And really that was because I'm a user of the app. Like I'm on as an expert and I've had such a good experience with it. I've met so many amazing people. I truly believe in the product.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
The founder's awesome. I just felt compelled to be an investor in their future.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
AI, I think is like the big one. We have a lot of AI on the platform and they get a ton of investment. I think anything in terms of workflow, I think we're entering a new era of working from home, working remotely. Any tools that help with that side of the productivity, I think are doing extremely well.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes. Okay. So the timeline is crazy. So the first Create and Cultivate actually happened in 2011. So early, early days, but so small. Truly, I knew everyone that was there. It was maybe 25 women. And it grew organically year over year, I would say, as sort of a new business vehicle for that marketing agency. Like I really didn't treat it like a business.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
You look at something like a Canva that just completely disrupted the graphic design space, the deck creation space. Unbelievable, right? So things like that, where you're taking something that actually can be made much better using tools like AI, I think that's a home run.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah. Okay.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Car.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I got post-divorce. I got like a black Range Rover, kind of sexy, batty. All blacked out. All black on black.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
You can read about that in my book, work party. It's my first business, but it's yeah. Okay.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I think I probably have because I didn't want a second date.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It's like I just wanted it to end.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I just wanted it to end.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Probably not. They're probably like, she really likes me.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, I think just in general, though, it's a bad sign. It's not good. That was fun.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I think I said it earlier, but diversification is the spice of life. I think always be diversified in your investments, some risky, some less risky.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It was really like selfishly to meet cool women and throw cool events. But I would say the turning point was, I would say, 2015 for Create and Cultivate, where it got big enough that I brought on a partner into that company, invested my own capital into it, and was like, this is a serious thing.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And then the other business was acquired in 2016, which, again, was another big year for Create and Cultivate. I stayed on board with that company for a year after selling it and did both full time, which I highly do not recommend. Very brutal. Yes. And so I did that. And then I went full time at Create and Cultivate after that.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
I think circumstance really. I had moved to Los Angeles from New York. I'd always worked in corporate. So it was like a corporate girly and essentially got to LA and got laid off and didn't know anyone.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
crazy. So I worked for Interactive Corporation. I see. I worked at CitySearch. I don't know if you remember CitySearch. But yeah, so I worked for them and then basically was laid off after three months. And it was really challenging for me for a number of reasons. One, I just moved to a city where I knew no one. Two, LA at the time, this is 2009, was entertainment and entertainment really only.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
There was really no industries and I obviously had no experience in entertainment coming from New York.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
and three was like my identity was really wrapped up in being a successful career woman so getting laid off was not part of the narrative i was trying to build and so after that i essentially was applying for jobs not getting anywhere and started freelancing for clients and so built up that roster enough to bring on another employee ended up getting office space ended up launching an agency by happenstance just as an aside you mentioned you got laid off which can be so painful have you ever been on the other side of that have you ever had to do a layoff
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes, we had to do a small amount of layoffs during COVID, which was awful. I actually was very proud about how many people we kept on being that we were in events business. But yeah, it was awful. But I haven't had to do that in any other kind of circumstance. And I think COVID was a special one for sure. Not ideal, though, obviously for anyone.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Oh, yeah. So we were bootstrapped. So it was obviously everything is felt 10 times more, I think, when you're bootstrapped.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
no so i put in initially fifty thousand dollars my partner put in two hundred and fifty thousand dollars as like a loan to the company we paid ourselves back actually within a year based on the profits and things like that that's the only capital that was ever put into the business
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So I'm actually the worst person to ask about this because I paid myself the same salary for truly like 10 years. had the notion and what's widely known is like the founder never pays themselves a lot. Like the high paid founder is usually a red flag, depending on what your revenue is, obviously.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
But for me, I basically, I think I went in at like $100,000 and I stayed at $100,000 for truly like 10 years. And so I was really just putting everything back into the business. I will say until I brought a CFO COO on probably in 2018 and she was like, you're grossly underpaid. And she was like, we need to change this. You need to make more money. And so that's when things shifted.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So I had a nice windfall from the first exit. So I used that money to actually buy my first house. So I had equity in the housing market, which was really great. And then I also had a really big windfall from an angel investment I made. So those two things were actually what really propelled me through the next few years. And then we did take distributions occasionally from the company as well.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah, no, it's such a good question. And now I say, I always tell people, I'm like, you really have to prioritize your own personal wealth when building a company. Do you do that year one? Probably not. But like year four, year five, you really need to start thinking through your own personal exit strategy. What is the financial success look like for you?
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Because I think we often put ourselves on the backbone. burner. So I would say it's typically a ratio of revenue, right? So there's a lot of things online you can read about this, et cetera, but like the revenue you're making should be reflective of your salary.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So if you're doing a million dollars year one, you can figure out what your salary is at that 10% is probably hefty, but maybe realistic for your situation. as you grow your revenue, you should be increasing your salary over time.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And again, that doesn't have to necessarily be a guaranteed salary, you can bonus yourself, you can create goals for yourself, you can do distributions, there's ways you can get creative when you own the company. Obviously, if you have investors, it's a little different. But I think it's about getting creative in that way.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So great question. I would say I was 26 probably when I sold the company and the angel investment, I was probably 29.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
No, it was new to me too. I didn't know anything about it. I didn't know about like what kind of checking or investing or anything like that as well. So it was like a whole new world for me. I will say I've been very lucky in the housing market and I've been really strategic with real estate, which has also paid off longer term.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
We actually had two sell opportunities. So in 2018, we had a few strategic buyers come to the table, which was early for us, I thought. I think we were $8 million in revenue, a team of eight people. I had no executive team. It was pretty scrappy and small, but growing fast. And so we went through a process in 2018. We had, I think, like four LOIs that came through.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yes, and they were big money.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
It essentially means nothing. And that's important for this conversation. It literally means nothing. It's not binding. Because I was like, woo, buy me the yacht. We're buyers. Let's go. Yeah, it was exciting. It was a very exciting time. We went through...
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
painful diligence with a public company that was interested in buying us and it ended up falling apart in the nth hour which had nothing to do with us but was very brutal and I say that to say because I think a lot of people think selling a company is like very easy and it's like you find the person you do the thing it is So challenging. There are so many ups and downs.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Majority of deals, I would say, fall through. I don't know if you agree with that.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Truly. The stress.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
and i wish i had known that most deals fall through because i think i was so emotionally connected to this deal it like crushed me when it fell apart like i just was because especially when we had done nothing wrong i was like no it's like the markets had shifted and so that was devastating for me and really challenging i'd like literally picked out my office space had told employees it was bad bad but again it was a very hard and expensive lesson
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And then so cut to, I basically was like back to the drawing board, like we need to focus on building out the C-suite and really growing. Had a banner year 2019, top of 2020, absolutely crushed at Q1. And then we all know COVID hit. And luckily, like we actually had a good story coming out of COVID, despite being bootstrapped and being an events business.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
No, it is mind blowing. I think I just like, I... thoroughly through my entire body and mind into that experience where I think most entrepreneurs were one or the other. They either completely shut down, which is understandable, or they were fight or flight mode and just went insane. I was definitely the person that went insane and was just like ideas move fast, go, go. So we moved very quickly.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
We pivoted to digital. We luckily had a membership in place that we were able to monetize quickly. We retained 90% of our sponsors in minimal layoffs. Yeah, we were very lucky. And we were able to pivot very quickly and took a revenue hit, but actually maintained EBITDA, which was really exciting for us. So it was a good story for potential buyers.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Now, what had happened was all the strategic buyers that were interested obviously had struggled during COVID or had lost a lot of money and were not in acquisition mode. But private equity was booming during that time. They were sitting on a ton of cash and were interested in buying companies that had done well during COVID. So we ended up doing a deal with private equity.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
So private equity, essentially the goal of private equity is to find companies that are highly profitable, high revenue and have a lot of potential to grow to then do a secondary sale. So essentially the goal of private equity is to come in, provide infrastructure and expertise as well as cash to basically pour fuel on the fire of an already existing company that's doing well.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
to then sell it for a higher price in two to five years. That's essentially the goal.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
Yeah. And really similar to venture in a way is they're basically going to invest in 20 companies and hope one succeeds. Like that's their model. When they go into it, failure is not even failure for them. It's just like another write-off or write-down. Whereas you, the founder, is like, this is my company, this is my baby. Like, it's just a different mentality.
Money Rehab with Nicole Lapin
How to Build Wealth by Founding Companies and Angel Investing with Jaclyn Johnson
And there's actually a really good episode of Freakonomics on private equity that you should listen to if you haven't yet. It talks a lot about the breakdown of what it's doing, why it's not great for some businesses, but great for other businesses. And it's really interesting.