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The founders of Wag raised $37m for their new electric-bike sharing startup.
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The Hustle
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Sponsored by
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<h2 style="font-family: arial, sans-serif; font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
The founders of Wag abandon fund and ride off into the sunset with bike-share startup
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Last year, Wag’s founders, wonder-bros Jonathan and Joshua Viner, went from being fundees
<em>
to funders,
</em>
launching their own fund for consumer startups.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Now, they’re
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
abandoning that plan
</a>
to put all of their bones in one basket: an electric bike-share startup with $37m in funding called
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
Wheels
</a>
.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
If you love something, let it go
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Almost exactly one year ago, then-3-year-old dog walking startup, Wag, secured a massive,
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
$300m investment
</a>
from SoftBank’s infamous Vision Fund, in exchange for 45% of the company and 2 board seats.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Prior to the deal, Josh Viner also agreed to abdicate his position as CEO in favor of more experienced exec, former LifeLock CEO Hilary Schneider.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Josh and Jon said they would stay on at the company in senior roles and it appeared to be a classic case of the SoftBank steamroller -- though the brothers have denied SoftBank’s influence on their decision.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
The brothers Viner
</a>
were down, but not out: 5 months later, they announced their plan to leave Wag to start their
<em>
own
</em>
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
$50-200k fund
</a>
, leveraging their “marketing chops and celebrity connections” to help consumer startups.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
Take that FU(nd) money and run
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Now, after 7 months in stealth, the Viners are calling it quits on their so-called fund, to focus on its golden child, Wheels.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Josh said that after starting the fund, “Wheels quickly became a massive opportunity, and we’re now entirely focused on this business.”
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<em>
You guys know that’s not how a fund works, right?
</em>
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Wheels inexplicably hopes to compete with the likes of Uber, Lyft, Bird, Scoot, and Lime in the “dockless electric mobility” market, by focusing on a “sustainability-first approach” with swappable part replacements.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
But how sustainably can Wheels “swap out” bikes after teens throw them in a lake???
</p>
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@ Me Anything
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<a style="color: #ed4d1f; text-decoration: none;">
<span style="color: #000000; font-size: 16px; font-weight: bold;">
Lindsey Quinn
</span>
<span style="color: #000000; font-size: 16px;">
, Managing Editor at The Hustle
</span>
<br/>
<span style="color: #657786; font-size: 14px;">
@LimbsySquid
</span>
</a>
<br/>
Step 1: Start a “fund.”
Step 2: Take the best idea.
Step 3: Close fund.
Step 4: Profit!
<br/>
<a style="color: #ed4d1f; text-decoration: none;">
Show this thread
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Step aside, Winklevi
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<tr id="news1">
<td>
<h2 style="font-family: arial, sans-serif; font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Enter ‘the reverse supply chain’ -- where Amazon returns are sold and reborn
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Amazon’s product-sorting and ranking algorithms are the best in the business -- after all, the company sells a wider variety of goods than an industrial-sized bag of Otter Pops. But once a product is returned, all organization goes out the window.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Once the items wriggle free of the database, they’re randomly cobbled into mystery boxes full of other unwanted goods -- cuz who wants to waste time sorting the rejects?
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Per
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
<em>
The Atlantic
</em>
</a>
<em>
,
</em>
it turns out there’s a whole market of hustlers looking to capitalize on Amazon’s slop... which is where Liquidation.com comes in.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
Going where lots of returns have gone before
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Founded in ’99, Liquidity Services (branded as Liquidation.com) is a marketplace that connects sellers to its list of nearly 3.4m registered buyers.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
The company calls dealing with returns “the reverse supply chain” -- a side of the retail biz that has only grown as online shopping increases (in 2016 an estimated 25-30% of online purchases were returned).
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
In the past fiscal year, Liquidity Services
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
bought
</a>
$33m of leftover Amazon inventory (which it then sells for maybe 5% of the supposed retail value) -- and then it sold $626m worth of shtuff.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
A side-hustle is born
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Once people buy Amazon’s mystery boxes from Liquidity Services, they can sort the items and then sell them for
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
larger profit
</a>
.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Now that liquidation is taking off, some people are making side cash while others are making it a
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
profession
</a>
: But don’t be a liqui-fool, in the world of resale, there’s always more dirt than gold.
</p>
</td>
</tr>
<!-- START LINK -->
<tr>
<td id="link" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; padding: 10px 0 40px;">
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<a style="color: #000000; font-size: 12px; font-weight: bold; line-height: 21px; text-decoration: none;">
Liqui-coooool
</a>
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<td>
<h2 style="font-family: arial, sans-serif; font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Andela, which pairs African developers with global tech companies, raises $100m
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Andela, a company that mentors African software developers and connects them with top-tier tech companies, raised
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
$100m
</a>
to double in size.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
As both an outsourcing company and a professional development program, Andela has staffed more than 200 tech companies and launched tech careers for
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
1.1k
</a>
developers.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
So, how does Andela work?
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Andela wears two hats. For applicants, Andela is a highly selective professional training program; for corporate clients, it’s a top-quality tech staffing agency.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Employees apply to Andela: If they survive the rigorous application process (less than 1% do), developers go through 6 months of immersive training before they’re paired with a partner company.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Clients pay between $50k-$120k per developer, and Andela pays ⅓ of that directly to the employee and keeps the rest to feed back into the business to provide resources that allow their developers to work remotely.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
The distributed future
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Andela’s ‘distributed’ model is good for local economies (because highly skilled employees stay in-country) and global tech companies (who need trustworthy remote employees).
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
To date, Andela has raised
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
$180m
</a>
(with backing from Mark Zuckerberg’s Chan Zuckerberg Initiative and Al Gore’s investment firm).
</p>
</td>
</tr>
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<td id="link" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; padding: 10px 0 40px;">
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»
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<a style="color: #000000; font-size: 12px; font-weight: bold; line-height: 21px; text-decoration: none;">
Contribution by distribution
</a>
</td>
</tr>
</tbody>
</table>
</td>
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<!-- END LINK -->
<!-- END BRIEF -->
<!-- START BRIEF -->
<tr id="news1">
<td>
<h2 style="font-family: arial, sans-serif; font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Dirt moguls: Why it’s better to own a dirt lot than an old building in a housing boom
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
According to new
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
research
</a>
from the Federal Housing Finance Agency reviewed by
<em>
The
</em>
<em>
Washington Post
</em>
, the value of
<em>
land
</em>
in hot real estate markets rises faster than value of
<em>
houses
</em>
in those same markets.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
While real estate is a good investment for people who have enough money to buy houses and apartment complexes, it make
<em>
fortunes
</em>
for the people who can afford to sit on a plot of sweet, tenantless dirt.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
The haves and the have-dirts
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Like houses, land is most valuable in developed areas: An acre of the brown stuff is worth
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
7.5k
</a>
times as much in Brooklyn Heights as it is in rural Arkansas.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Yet, when real estate market heats up in a particular city,
<em>
land
</em>
owners benefit far more than
<em>
home
</em>
owners. The first reason for this is obvious: You can build more houses, but you can’t build more land.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
But the second reason is more complex: Since developers need to buy land
<em>
before
</em>
they create buildings, landowners can always cash out before homeowners -- and they don’t need to remodel their condo to do it.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
Unreal estate
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Research shows that huge spikes in land prices are accurate predictors of subsequent housing busts. So, when housing markets hit the fan, landowners can sell their dirt right away (or hold onto it until prices go back up).
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
On the flipside, building developers are often stuck with expensive construction or renovation projects, with no way to recoup all the money they spent.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Long story short: If you happen to own a dozen vacant lots in Seattle… You’re doing all right.
</p>
</td>
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<a style="color: #000000; font-size: 12px; font-weight: bold; line-height: 21px; text-decoration: none;">
Dirt is the word
</a>
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<td>
<table style="border-spacing: 0px;">
<tr>
<td align="center" bgcolor="#dedede" style="background: #dedede; color: #5c5c5c; font-family: 'Arial',sans-serif; font-size: 10px; font-weight: bold; letter-spacing: 1.5px; padding: 5px 0; text-align: center; width: 100px;">
SPONSORED
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<td>
<h2 style="font-family: arial, sans-serif; font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
“So, we got a new payment platform...
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Hold up. I know what you’re thinking.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<em>
Payment platform? Spare me the boredom.
</em>
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Well unfortunately for you, I’m an amazing storyteller. *Rolls sleeves*
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Any business leader worth the salt on their brow knows expenses are a pain in the a** --
<em>
especially
</em>
when you’re dealing with remote teams like we do at The Hustle.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
For us, passing around the single corporate card was falling short of what you’d call a “mature, sustainable solution” for our growing pirate ship.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
So, we called
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
Divvy
</a>
.
</p>
<h4 style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
“If the features don’t sell you, you’re not listening”
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
Divvy
</a>
had every feature we needed, a whole lot we wanted, and even some extras that surprised us.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
My personal favorite? On-the-fly purchase permissions. I can set budgets that my team has to stick to, but when somebody needs to splurge, I can easily approve from the
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; text-decoration: none;">
Divvy app
</a>
.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Plus, the virtual credit cards make it super easy to create multiple cards for infrequent purchasers. If you find yourself in the underbelly of the internet and your number gets swiped, you don’t have to cancel the one card that has
<em>
every
</em>
subscription on it.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Peep a demo -- and snag $100 for your time -- when you click below. Trust me, you’ll love it.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<em>
-- Adam Ryan, Resident Yarn Spinner
</em>
</p>
</td>
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<tr id="cta">
<td align="center" style="padding: 20px 0 40px; text-align: center; width: 100%;">
<a style="background: #ffffff; border: 2px solid #000000; border-radius: 3px; color: #000000; font-family: 'Courier New',courier,monospace; font-size: 14px; font-weight: bold; letter-spacing: -0.5px; padding: 10px 15px; text-decoration: none;">
Gettin’ Divvy wit’ it →
</a>
</td>
</tr>
<tr>
<td style="padding-bottom: 60px;">
</td>
</tr>
<!-- END NATIVE -->
<!-- START THINGS HEADER -->
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things you should...
</td>
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</td>
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<!-- START SINGLE THING -->
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<td>
<h4 dir="ltr" style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 18px;">
READ:
<span style="font-weight: normal;">
‘WTF?! Willing to Fail’ by our pal Brian Scudamore, $1
</span>
</h4>
<p dir="ltr" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 16px;">
CEO of 1-800-JUNK and past Hustle Con speaker Brian Scudamore is back with his new book about the trials and triumphs of failing upward. This week only, the Kindle version is just $1. Think of it as the cheapest MBA around.
<br/>
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; font-size: 14px; font-weight: bold; line-height: 200%; text-decoration: none;">
MORE LIKE 1-800-GET-SMART →
</a>
</p>
</td>
</tr>
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<tr>
<td>
<h4 dir="ltr" style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 18px;">
CHARGE:
<span style="font-weight: normal;">
Your phone without cables, $17.99
</span>
</h4>
<p dir="ltr" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 16px;">
Cables are for squares. Use this Akner Qi Charger to wirelessly charge your new iPhone the way it was designed to be charged: Without cables. Just set it down and let the juice loose.
<br/>
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; font-size: 14px; font-weight: bold; line-height: 200%; text-decoration: none;">
THE SECRET IS IN THE PAD →
</a>
</p>
</td>
</tr>
<!-- END SINGLE THING -->
<!-- START SINGLE THING -->
<tr>
<td>
<h4 dir="ltr" style="font-family: arial, sans-serif; font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 18px;">
BINGE:
<span style="font-weight: normal;">
Posts of the largest great white shark, Free
</span>
</h4>
<p dir="ltr" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 16px;">
After coming across the largest great white shark ever recorded, Miss. Deep Blue, Conservationist and Instagram influencer @OceanRamsey swam with it. Not everyone is happy, but the pics are pretty wild.
<br/>
<a style="-webkit-text-fill-color: #ed4d1f; color: #ed4d1f; font-size: 14px; font-weight: bold; line-height: 200%; text-decoration: none;">
GET A LOAD OF THIS JAW →
</a>
</p>
</td>
</tr>
<!-- END SINGLE THING -->
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<tr>
<td>
<table style="border-spacing: 0px;">
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SPONSORED
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WAKE:
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up hangover-free after a big night out, $20 off
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We’ve all been there, buried in pain after a wild night out with friends. Thanks to Morning Recovery, you no longer need to pay the price. Created by an ex-Tesla engineer and a team of hangover researchers (yes they exist), you can rest assured the next time you drink. Use code HUSTLE20 at checkout.
<br/>
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IT'S NOT MAGIC, IT'S SCIENCE →
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Hunger with free delivery from Postmates, $100 Credit
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Ahhh, hunger… that old crone, come crawling back into your stomach to wreak havoc and awkwardly loud rumblings once more. Defeat them with a burrito (or anything else you desire) brought straight to your doorstep by Postmates. Download the app and use code HUSTLE to get $100 in delivery fee credit for your first 7 days.
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TAME THE RUMBLE, TASTE THE RUMBLE →
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Old Stuff, New Glass, The Orielles
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. Tasteful bongos and well-placed yelps. What more can you ask for?
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REFERRALS
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Zack Crockett
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NEWS WRITER
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Wes Schlagenhauf
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NEWS WRITER
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Conor Grant
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NEWS WRITER
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Kolby Hatch
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AD WRITER
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Lindsey “Got dirt?” Quinn
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MANAGING EDITOR
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Les Block
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VP of Sun Tanning
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5 years, 11 months ago - news@thehustle.co
The founders of Wag raised $37m for their new electric-bike sharing startup. The Hustle Sponsored...