Money Rehab Podcast Summary: "How to Build Wealth by Founding Companies and Angel Investing with Jacqueline Johnson"

Episode Details:

• Podcast: Money Rehab with Nicole Lapin
• Host: Money News Network (Guest Host: Tracy D'Annunzio)
• Guest: Jacqueline Johnson, Founder of Create and Cultivate and Angel Investor
• Release Date: December 6, 2024

Introduction

In this insightful episode of Money Rehab, guest host Tracy D'Annunzio engages in a compelling conversation with Jacqueline Johnson, a seasoned entrepreneur and angel investor. The discussion navigates Jacqueline's entrepreneurial journey, her strategic decisions in building and selling her company, and her ventures into angel investing. Additionally, Jacqueline shares personal experiences balancing financial success with personal life challenges, offering listeners a holistic view of wealth creation and management.

Entrepreneurial Journey and Create and Cultivate

Jacqueline Johnson begins by recounting the origins of her first company, a marketing events and influencer agency. After relocating from New York to Los Angeles in 2009 and facing a layoff, she transitioned to freelancing, which organically evolved into Create and Cultivate in 2011 ([04:30]).

Jacqueline Johnson [05:05]: "I realized like, oh, this is something that has real opportunity to sell."

Create and Cultivate quickly grew from a modest gathering of 25 women into the largest media and events company for ambitious women. By 2015, Jacqueline had brought on a partner and significantly invested in the company, marking a pivotal turn in its expansion ([07:05]).

Strategic Sale and Private Equity Experience

In 2018, Jacqueline faced the challenging process of selling Create and Cultivate. She navigated through multiple Letters of Intent (LOIs), experiencing both excitement and emotional turmoil when deals fell through due to market shifts ([13:05]).

Jacqueline Johnson [13:22]: "Selling a company is not easy. It is so challenging. There are so many ups and downs."

Ultimately, the company was acquired by a private equity firm during the COVID-19 pandemic. Jacqueline highlights how the economic climate played a crucial role in the sale, emphasizing the resilience and adaptability required to manage such transitions.

Angel Investing and Launching Cherub

Post-acquisition, Jacqueline delves into angel investing, describing it as a high-risk, high-reward strategy essential for diversifying one's investment portfolio. She founded Cherub, a platform designed to bridge the gap between angel investors and entrepreneurs using a matchmaking approach reminiscent of dating apps ([42:02]).

Jacqueline Johnson [44:38]: "Cherub is really democratizing the angel investing process, making it smooth and easy."

Through Cherub, Jacqueline has facilitated over $2 million in investments, focusing primarily on female-led startups. She shares success stories, including a $10,000 investment that yielded seven figures, underscoring the transformative potential of strategic angel investments ([43:27]).

Personal Wealth Management and Diversification

Jacqueline emphasizes the importance of diversification in wealth management. By maintaining a majority stake in Create and Cultivate and investing in real estate and angel investments, she ensures a balanced and resilient financial portfolio.

Jacqueline Johnson [50:37]: "Diversification is the spice of life. Always be diversified in your environment, investments... some risky, some less risky."

Her approach underscores the critical balance between reinvesting in her business and securing personal financial growth through varied investment avenues.

Balancing Personal Life with Financial Success

Beyond her professional achievements, Jacqueline candidly discusses the personal challenges that accompany financial success. She addresses the complexities of dating post-divorce while maintaining independence and the societal pressures women face regarding aesthetic standards.

Jacqueline Johnson [32:21]: "There's a lot of insecurity about successful women."

Jacqueline highlights the importance of building and maintaining genuine friendships, stressing that her longstanding relationships have been a cornerstone of her personal well-being amidst her career pursuits.

Future Directions and Legacy Building

Looking ahead, Jacqueline introduces her new initiative, "Launch to Legacy," aimed at guiding women through not just starting and growing businesses but also planning exits and building enduring legacies. This includes intimate masterminds and retreats tailored for high-revenue founders, fostering peer support and strategic growth ([29:00]).

Jacqueline Johnson [29:00]: "Our new philosophy is around launch to legacy, taking it through masterminds and retreats where founders can support and learn from each other."

This evolution reflects her commitment to empowering women entrepreneurs at every stage of their business journey.

Key Takeaways and Advice

Jacqueline's overarching advice centers on the importance of diversification, both in investments and personal environments. She encourages entrepreneurs to prioritize their personal wealth alongside business growth and underscores the value of mentorship and community support.

Jacqueline Johnson [50:37]: "Diversification is the spice of life."

Her experiences demonstrate the critical balance between taking calculated risks in investing and maintaining financial security through varied income streams.

Notable Quotes

• On Selling a Business:
  "Selling a company is not easy. It is so challenging. There are so many ups and downs."
  — Jacqueline Johnson [13:22]

• On Diversification:
  "Diversification is the spice of life. Always be diversified in your environment, investments... some risky, some less risky."
  — Jacqueline Johnson [50:37]

• On Personal Relationships and Success:
  "There's a lot of insecurity about successful women."
  — Jacqueline Johnson [32:21]

Conclusion

Jacqueline Johnson's narrative offers a profound exploration of wealth creation through entrepreneurship and angel investing, intertwined with personal resilience and strategic financial management. Her journey underscores the multifaceted nature of building and sustaining wealth, providing listeners with actionable insights and inspiring stories of success and adaptability. Whether you're an aspiring entrepreneur or an established business owner, Jacqueline's experiences offer valuable lessons in navigating the complexities of building and maintaining financial prosperity.

Note: This summary intentionally omits promotional segments and non-content sections from the podcast, focusing solely on the substantive discussions between Tracy D'Annunzio and Jacqueline Johnson.