Wednesday, May 17

FYI, giant mega-drones can lift people who want to go skydiving now. That’s a thing. [The Hustle]( Wed, May 17 China’s new silk belt On Monday, global leaders from 130 countries gathered to hear China’s plan to revive its ancient Silk Road trade route, calling it “One Belt, One Road.” Only it’s a little bigger this time. President Xi Jinping has pledged [$113B]( to build roads, railways, bridges and power plants, across Asia, Europe, Africa, and with links to South America. It’s the biggest infrastructure project in history Proposed in 2013, the $5T initiative connects over 64 countries that have signed cooperation agreements. Trade routes will connect the Chinese provinces to each other, as well as a huge portion of the globe -- about [65% of the world’s population]( and a quarter of its GDP. Mr. Xi is positioning himself as a champion of global relations while touting the Silk Road initiative as “an open and inclusive platform for cooperation.” But not everyone is buying it [India’s already out]( due to included projects for roads and railways that run through disputed territory in rival Pakistan. And, while Xi hoped to garner strong support from Western heads of state, European officials have yet to endorse the plan, [citing concerns]( that it’s not focused on free trade, but instead boosting Chinese businesses abroad, while restricting foreign access to its markets. Other trade groups (including the US) fear that China’s new cybersecurity laws may hinder transparency and discriminate against foreign businesses. They might be overextending themselves... While 50 Chinese state-owned companies have invested in 1,700 building projects, some are complaining that the government is pressuring them to take on [unprofitable projects]( (paywall). And without global support of the trade plan, these investments might lack the return China’s banking on. [So, where does soy milk fit in?]( The inexplicable rise of Red Delicious Red Delicious apples are the most produced apple in the US, but as competitors flood the market (Galas for the win), there’s a growing gap between supply and demand. So, how did arguably the worst apple in the basket (maybe 2nd to Granny Smith) become the [de facto apple]( brand for grocery stores everywhere? Good looks plus a little marketing Classic recipe for success. Back in the 1870s, Iowa farmer Jesse Hiatt discovered a mutant seedling that refused to die -- the first Red Delicious. He submitted the fruit to a contest run by the Stark Brothers’ Nursery to find the best new apple variety and won. The entrepreneurial Starks rebranded the apple from the “Hawkeye” to the “Red Delicious” (because that’s a thing) in 1914 on the heels of the Golden Delicious’ success. They then [funneled $750k]( into, as one apple aficionado puts it, ramming the “disgusting, red, beautiful fruit” down our throats with advertising and traveling salesmen. But its beauty was only skin deep Farmers loved the apple because of its thick, bright red skin that hid imperfections and, by the 80s, they made up 75% of Washington’s crop. Since then, however, other varieties have made their way into US markets that don’t look as pretty but taste a jillion times better. And it seems consumers have gotten [less shallow]( -- since their peak, RD production has declined 40%, in favor of apples that suck less. [Give me Fuji or give me death]( The VC minor leagues AngelList, that website where all the startups are listed, launched a new product yesterday called “[Angel Funds]( that enables trusted founders to raise money on their own and invest it how they please. Dubbed “[Operator Angels]( this new kind of investor is the perfect balance between taking money from a legit, buttoned-up venture capital firm and that weird rich guy who sold a company in the first dot-com and only wears sweatpants. The goal is disaggregation [AngelList’s]( head honcho, Naval Ravikant, sees this as the best way for current successful founders to help future successful founders. In the past, companies in need of money had to work with a limited number of accredited investors and accept whatever terms they could get. But with new online startup networks and the [JOBS Act]( that softened investing criteria, the bar for distributing capital is much lower. Which is great for founders who have a successful track record, but not enough capital to make meaningful investments. So, what’s in it for the ‘List? Angel Funds will start between $500k and $1m, with 15% of the profit going to the lead operator and 5% going to AngelList. But if all things go according to plan, they want to have at least 100 “founders-backing-founders” funds by the end of the year so investments can be made quickly and without the overhead of lawyers. [For founders, by founders]( Tile solves your problems IRL Anyone in tech knows the biggest compliment for a hoodie wielding startup-head is to be labeled a “disruptor,” AKA solving problems that may or may not yet exist and creating whole new industries. Blue ocean strategy, baby. But some companies are making it the old fashioned way by solving real-world problems. Like, for example, losing your darn keys all the time. That’s how Tile, the bluetooth-tracking “find anything you lose” device company just [secured $25m]( in funding, capping off a milestone $100m revenue year. Building bit by bit, tile by tile Tile is something of a rarity in Silicon Valley: A successfully crowdfunded company. And successful here is an understatement. A month into [their campaign]( they had 200k pre-orders and raised $2.7m. Even Steve Wozniak got interested. Tile was even able to keep momentum after the initial hype because they drove traffic directly to their site, instead of through a third-party like Kickstarter. Which translated to the perfect sales-marketing funnel, and 2m units sold in 2 years. Cool, so I’ll never lose anything again? If Tile has their way, yes. The 100-person company [plans]( to put its tracking devices in everything from headphones to high-end battery packs. Until then, can someone please call my phone? [Check under the couch cushions]( hustle con-tent Count Chocula or bust We’ve got [Humans of Hustle Con Part Deux]( comin’ in hot -- you know, the video series where attendees discuss the smells and sights they’re looking forward to at Hustle Con, as well as their spirit cereal brand. It’s hard hitting stuff and it’ll get you jacked up to meet some likeminded people at Hustle Con, whether you have your ticket yet or not (which you should). Snag your seat to the show and [meet your new best friends](. This edition of The Hustle was brought to you by Let’s talk about our editor, John Or, as you probably know him, John “How many tweets get me free taco bell?” Havel. No? Then read the bottom of the email sometime! While we all love our editorial commander-in-chief, he has a serious problem: he absolutely hates drinking water. If it weren’t for black coffee, no form of liquid would hit that dude’s lips. The rest of us are concerned because hydration is essential for humans, so he’s either actually a robot or will disintegrate into a pile of dust. But wait, there’s a third option! While John steers clear of the bland taste of H2O, he recently turned into a huge fan of Hint’s natural [fruit-flavored water](. With no calories or diet sweeteners, [Hint]( gives John the hydration we all desperately crave for him, not to mention [flavor]( that meets his strict standards. Plus, with [scheduled deliveries]( for $15 a pack, it’s easy for John to have a constant supply in the office without impacting the company card. So if you’re like John “I only get my hydration from horrible sugar drinks or diuretics,” [try Hint.]( Your body will thank you. [SUBSCRIBE]( [JOBS]( [ADVERTISE]( [EVENTS]( Lindsey Quinn WRITER Kamran Rosen WRITER Joe Klein EMERGENCY HUMOR HOTLINE OPERATOR John "Honey Nut Cheerios, obviously" Havel BACKSEAT EDITOR You opted in by [signing up]( entering a [giveaway]( or through [divine intervention](. [1381 9TH AVENUE, SAN FRANCISCO, CA 94122, UNITED STATES]( • [415.506.7210](tel:+1-415-506-7210) Never wanna hear from us again? Break our hearts and [unsubscribe](.