When Pinky Cole visited Chicago’s DuSable Black History Museum and Education Center for the WDB Legacy Gala last month, she opened up about the highs and lows of building a $100 million brand — and it wasn’t the first time she’s been candid about the realities of entrepreneurship.
That transparency continued this month when the Atlanta-based Slutty Vegan founder took to Instagram to share one of the most difficult chapters of her journey.
She posted an emotional video to her 1 million followers with a surprising update:
“As of Feb. 13, the company went through a global restructuring. And as a result of that, that meant that I no longer own the company…”
The successful Black woman who built a $100 million vegan burger empire no longer owned the business she started.
During a recent interview with Natasha Alford of theGrio on Master of the Game, Cole talked about the hardest part of success:
“It is easy to get it. Once you get it, that part is easy. Keeping it is the challenge because now you have to focus on policies, procedures, systems, consistency, and business. And that is oftentimes where we as entrepreneurs fall short. You can create something great, but if it ain’t consistent, then they aren’t coming back — and then you lose everything you built.”
Who Am I & Why I Care?
My name is J.D. Smith, and I’m the Chief Technology Officer of Chicago Southsider. In my day job, I work as a Deal Partner for several venture capital firms — helping investors find startups to fund and working with founders to ensure they’re ready to grow and succeed.
I also run an advisory firm called Startup Guru, where I help founders become “investor-ready.” That means preparing their businesses (and mindsets) for the financial world most people aren’t taught about — things like equity, valuations, SAFE notes, and more.
So when Pinky shared her story, I knew it was a teachable moment. Let’s break down exactly what happened — and how you can avoid it.
What Happened to Pinky Cole?
Even though Pinky had packed lines, massive press, and celebrity support, she was facing major financial pressure.
- Her company had a $100 million valuation
- She also had $10 million in corporate overhead
- Eventually, she entered a restructuring process, gave up ownership, and later bought the company back (for an undisclosed amount)
So how does something like this happen?
Pinky Cole shared that her company went through a global restructuring, which meant she had to temporarily give up ownership of the business she built.
What it means:
A restructuring is when a company reorganizes its operations, finances, or ownership structure—often to reduce debt, cut costs, or stay afloat. In Pinky’s case, it likely involved assigning ownership to a third party (such as a trustee or creditor) to manage liabilities, with the opportunity for her to buy the business back and start fresh. How do you even get to the point that you need a restructuring? It often starts with giving away too much equity too soon.
Now Let’s talk about equity and how it can be given away without understanding how much it will be worth one day.
What’s Equity?
In her Masters of the Game interview, Pinky said:
“When I first got into this business, I didn’t know anything about equity. I didn’t know enough about SAFE notes. I’m still learning.”
Equity means ownership.
If you own 100% of your business, you have all the power. But if you give someone else 10% equity, they now own 10% of your company. That might seem fine at first… until you give away so much equity that you lose control.
And that may be what happened to Pinky.
Here’s the dirty little secret: equity is dilutive.
What does that mean? It means when you raise money by giving up equity, you’re trading a percentage of ownership in your company — and the more you give away, the less control you keep.
What’s a SAFE Note?
SAFE stands for Simple Agreement for Future Equity.
It’s a contract that says:
“I, the investor, will give you money now, and I’ll get equity later when your company raises more money or sells.”
Sounds simple, right? But if you don’t understand the fine print, you might end up handing over way more ownership than you expected.
SAFE Notes are a cost-effective way for founders to raise early money without spending a lot on legal fees. But as your company grows and you start attracting larger investments, your legal and financial responsibilities will grow, too.
Learn the Lingo: Your Key to Financial Power
Pinky admitted she needed help “translating” her own business. In her words, “Somebody else had to translate the thing that I created for me.” It’s not always simple, but you can learn investor lingo over time.
This might sound surprising, yet most founders—and other types of business owners—don’t have every aspect of finance or investor terminology under their belt. That’s okay. What is essential is understanding your own numbers and having trusted advisors who speak the language of venture capital and finance. If you’re stronger in operations, marketing, or customer service, lean on people who can decode complex financial terms and explain them clearly.
These advisors should thoroughly understand:
- Your numbers
- Your business model
- How to translate it all in plain language
By learning the lingo, you’ll make informed decisions, and hopefully ensure you’re not handing over too much power in your own business.
What’s Next?
In the next edition of South Side Economist, we’re going even deeper. We’ll break down:
- What is a company valuation?
(How much is your company worth to investors — even before it exists?) - How to raise money from investors before you even start the company
(Because sometimes, your idea alone is valuable enough to get funded)
Pinky Cole’s story isn’t just a cautionary tale — it’s a blueprint for what to learn. Let’s grow smarter. Let’s build better. Let’s own more.
Until next time.
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