Nate Checketts had just closed the biggest deal of his career, bringing a major private equity investor into his apparel brand Rhone. He was feeling pretty good.
Then he spoke with a friend who'd closed a similar deal. "Yeah," said the friend, "I've got two years, and if I don't do my job, they'll replace me."
Oh, wow, Nate thought to himself. What did I just do?
Investments can be game-changing for companies, of course. They provide the capital to take risks, innovate, boost marketing, and more. But when a founder raises money, the goals of their company change: They must now build toward a big exit, so their investors get a return on their investment.
What if a founder has other priorities, other hopes? Could they ever regain control?
Eventually, those questions began to weigh on Nate (Rhone's CEO), as well as his brother and cofounder, Ben Checketts (Rhone's creative director). What if we want to be different? the brothers wondered. Could they ever grow on their timeline, thinking more about long-term (and maybe even lifetime) investments?
To do that, the Checketts brothers came to realize, they'd need to buy out their private equity partner. But who even does that? And how?
In July 2022, nearly five years after taking the private equity money, they figured it out. News quickly spread among startup founders, and many started calling the Checketts brothers to ask how they did it. These founders had been asking themselves similar questions, wondering how to rewrite the playbook on growth and funding. Maybe there was a different way to grow a business-one where fundraising doesn't lead to soon losing control?
"In theory, nothing changed for us," says Nate, who is now talking about the deal publicly for the first time. "But really, it's the mindset: Everything has changed."
This story is from the January - February 2024 edition of Entrepreneur US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January - February 2024 edition of Entrepreneur US.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\" Instead, what I found was a tarot card deck.
10 HOTTEST TRENDS for 2025
Want to buy a brand that buzzes? Here's what to know.
BUILD YOUR MONEY MACHINE
A franchise isn't just a franchise. It should be a Money Machine, creating profit even while you're out of the office. Here's how.
The Top Franchises for Veterans
Are you a military vet looking to become a franchisee, or just want to support a brand that supports the troops? Check out these 150 brands.
20 LEADERS WHO ARE DEFINING ENTREPRENEURSHIP TODAY
In a year of disruption, we wanted to know: Whose work will define the years to come? We reviewed hundreds of names and picked 20 leaders across a range of industries and sizes. Meet them on the following pages, and see what it takes to thrive in 2025 and beyond.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humilityand it changed the way I relate to clients.
I've Been a Publicist for 17 Years.Don't Hire Me.
Entrepreneurs often think they need PR. Most don't. Here's why you're probably better off not hiring someone like me.
The CEO's Advice to the MVP
Kickstarter CEO Everette Taylor knows the formula for a successful launch. NBA champ Jaylen Brown recently launched a shoe and athleisure brand. They have a lot to teach each other.
