Jaclyn Johnson, the Los Angeles-based founder of women’s business platform Create & Cultivate, made headlines in 2021 when she sold her company for $22 million to a private equity firm. However, in an unusual move that defies conventional startup exit strategies, Johnson bought back her own company just two years later, marking a rare second chapter in entrepreneurial ownership that highlights both the complexities of private equity deals and the emotional attachment founders maintain to their ventures.
According to Business Insider, Johnson was blindsided when she discovered the private equity firm that acquired her business was attempting to offload it. She told the Los Angeles Business Journal that her goal is now to rebuild the company into a $1 billion brand, demonstrating her renewed commitment to long-term growth over quick exits.
The Journey Behind the Startup Exit Strategy
Johnson’s entrepreneurial journey began with a calculated risk in her early thirties. She invested her entire $50,000 in savings into transforming Create & Cultivate from a side hustle into a full-time business venture. By 2020, the platform had evolved into a national movement hosting sold-out events featuring celebrities and prominent business leaders.
The decision to sell a majority stake in 2021 represented what many consider the ultimate startup exit strategy. However, the transaction revealed complications that many founders face post-sale. Johnson realized that the private equity firm’s priorities did not align with her vision for the community she had built over years of dedicated work.
Understanding the Risks of Entrepreneurship
While Johnson’s story exemplifies successful risk-taking, it remains statistically exceptional. According to the Commerce Institute’s 2025 data, approximately 20% of small businesses fail within their first year, and nearly 70% fail by their tenth year. These figures underscore the substantial risks inherent in pursuing an entrepreneurial exit strategy.
Additionally, the financial barriers to entry remain steep for aspiring entrepreneurs. A Monefy analysis found that even modest ventures typically require $50,000 to $150,000 in startup capital, particularly for businesses relying on inventory or physical operations. Online ventures may cost less initially, but scaling them to profitability demands significant investments in marketing, technology, and labor.
The Hidden Costs of Startup Culture
According to Homebase, the biggest challenge for first-time founders is not the launch cost but the cash required to sustain operations through the first year. Unlike venture-backed founders who operate with investor capital, most small business owners rely on personal funds, making the downside risk particularly severe when businesses fail.
Meanwhile, economic writer Kyla Scanlon, who coined the term “vibecession,” observed that when upward mobility stalls and wealth concentrates at the top, gambling on entrepreneurship can feel like a rational response. This mindset reflects broader economic anxieties driving many Americans toward high-risk ventures despite unfavorable odds.
Protecting Against Downside Risk
According to Failory, 34% of more than 80 failed startups interviewed cited lack of market demand as their primary failure reason. This finding emphasizes the importance of testing concepts, identifying paying customers, and securing early revenue before committing substantial resources.
Financial experts recommend maintaining six to 12 months of business and personal expenses before leaving full-time employment. This financial runway provides founders flexibility to navigate inevitable slow growth periods without jeopardizing personal solvency. Furthermore, prospective entrepreneurs should approach debt cautiously, as Small Business Administration loans are often secured by personal assets that banks can claim if loans default.
Lessons from a Unique Startup Exit and Return
Johnson’s experience illustrates that successful startup exit strategies require more than just securing a high valuation. Her decision to repurchase Create & Cultivate at a lower valuation demonstrates that founders sometimes prioritize autonomy and creative control over immediate financial gains.
In contrast to the prevailing narrative of quick exits and instant wealth, Johnson’s journey emphasizes the value of calculated risk over reckless gambling. Building downside protection through diversified income streams, flexible business models, or part-time consulting can transform risky leaps into strategic transitions.
Johnson’s second act with Create & Cultivate continues to unfold as she works toward her ambitious $1 billion valuation goal. The ultimate success of her buyback remains to be seen, though her story already offers valuable insights for entrepreneurs weighing the true costs and rewards of building, selling, and potentially reclaiming their ventures.
