International entrepreneurs in international waters
Table of contents
1. There's no startup place like Silicon Valley2. But there’s no U.S. entrepreneur visa3. Blueseed’s novel win-win solution4. What will we offer?
1. Cost of living2. Visas3. Questions
5. How can you help?
“I’m packed already”
-- Blueseed fan
What’s the best place on Earthfor a startup entrepreneur?
Silicon Valley? Keep readingTell me more
Skip next 6 slides
Of course
REASON
Silicon Valley is the best place for startups – a unique combination of:
Ideas Capital Culture
REASON
Silicon Valley is the best place for startups
Ideas – US is #1 place to file patents
Source: WIPO - http://www.wipo.int/ipstats/en/statistics/patents/
REASON
Germany
Russian Federation
China
European Patent Office
Republic of Korea
Japan
US
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
Patents by office, 1995-2010
Ideas – Silicon Valley is #1 U.S. area
San Francisco Bay Area
New York-Northern New Jersey-Long Is-
land
Los Angeles-Long Beach-Santa Ana,
CA
Boston-Cam-bridge-Quincy,
MA-NH
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Top U.S. regions by number ofUS Patent & Trademark Office patents, 2006-2010
Source: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cls_cbsa/allcbsa_gd.htm
REASON
Canada
China
Europe
Total:
Source:
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00$0.10$0.20
$0.70$0.47
$1.40$7.70
Venture capital investment (US$b)
Capital – US is the #1 regionREASON
Source: Ernst & Young - Global quarterly venture capital investment by geography, 2Q’2010
Sacramento/N.CalSouth Central
Upstate NYNorth Central
Philadelphia MetroSouthWest
ColoradoNorthwestSan Diego
DC/MetroplexSoutheast
MidwestTexas
LA/Orange CountyNY Metro
New EnglandSilicon Valley
Total:
Source:
US venture capital investments by region, 2011
Capital – Silicon Valley is #1 areaREASON
41.0%11.2%9.5%6.8%5.2%5.2%3.7%3.5%3.1%2.7%2.2%1.9%1.7%1.3%0.4%0.4%0.2%
% of total$11930M $3248M $2771M $1986M $1527M $1504M $1091M $1019M $892M $781M $627M $565M $485M $382M $119M $115M $67M
Amount
Source: PricewaterhouseCoopers National Venture Capital Association MoneyTree Report, Regional Aggregate Data 2011http://bit.ly/PWCMoneyTree2011
Culture – Silicon Valley is unique
Risk taking It’s OK to fail Engineering tradition
World class universities
Cultural diversity
REASON
So you want to come to Silicon Valley…
PROBLEM
But you are a foreigner!
“There simply are no US visas available for entrepreneurs”
-- American Immigration Lawyers Association,March 2012
PROBLEM
Source: http://www.youtube.com/watch?v=FLCYfhZEFb8#t=3m15s
Visa type Can work?
Can self-employ? Expires Restrictions
B1/B2 Business,Tourist or Waiver ✗ ✗ <6 mo/yr in
U.S.Can’t earn income
But can travel!
E-2Treaty Investor,or Employee of
✓ ✓ 2+2+2… yrsNot for India, Brazil, Russia, China “substantial” investment (~$100K)
must own 50%+ of the businesscan’t convert to Green Card
EB-5 Investor ✓ ✓ Never Must invest $1M+ and create 10 jobs
H1-BSkilled worker ✓ ✗ 3+3 yrs
If laid off, must find new sponsor ASAP – there is no grace period
Cap at 65,000 per year
L-1Intra-company
Transfer✓ ✗ 3 yrs Must have worked at foreign
branch for 1+ years
No U.S. visas for entrepreneursInadequate existing alternatives:
PROBLEM
Sources: USCIS, DHS
No progress in U.S.
Congress on
Startup Visa Acts
• Startup Visa (Mar ‘11) - died• Startup Act (Jun ‘11) - died• IDEA Act (Dec ‘11) - died• Startup Act 2.0 (May ‘12) - died• Startup Act 3.0 – 2% chance• Comprehensive Immigration
Reform – opposed by House
Political solutions?
Source: GovTrack.us - http://www.wipo.int/ipstats/en/statistics/patents/
PROBLEM
Startup entrepre-
neur kicked
out of US due to
visa issues
PROBLEMStartup
kicked out of US
due to visa
issues
PROBLEMStartup
entrepre-neur
kicked out of US due
to visa issues
Visa restrictions
make it hard to work as an
entrepreneur in
Silicon Valley.
What can
we do?
Think outside the box.Look to the left.
Image credit: siliconvalley.com
PROBLEM
12 miles
International waters line
Ship located 12 miles offshore,in international waters,
outside US jurisdiction – Bahamas flag
1
Convert the cruise shipto a live/work/play space for 1000
2
30 minutes to shore 20 minutes to Palo Alto
Convenient travel both waysby ferry, helicopter
3
Use B1/B2 business/tourist visato travel to mainland & stay <180 days
H-1B (skilled worker)
L-1 (intracompany transfer)
B1/B2 (business/tourism)
0500,000
1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,000
Average # of U.S. visas granted per year, 2006-2011
Source: http://www.travel.state.gov/xls/FYs97-11_NIVDetailTable.xls
OFFER
4
Streamlined customs checkpoint – e.g. “Global Entry”
5
• U.S. Customs and Border Protection (CBP) program• For frequent low-risk travelers• Enter the U.S. by using automated kiosks
30 minutesby ferry
SOLUTION
Business/Tourist Visa:• can travel to US, 180 days/yr• can attend meetings, events• streamlined border entryBahamas flagged ship:
• can earn income, start companies• streamlined regulatory environment
Work on the ship, in international watersTravel to the US using business/tourist visas, which are easier to obtain
Where are we right now?
Press from A to Z(working on Qz and Xconomy)
On TV – CBS, CNN, BBC etc. (click to play videos)
Startups that expressed interestLatest stats at blueseed.co/come-aboard/results
1516 entrepreneurs
496 startups
72 countries
United States 23%
India 10%
Canada 4%
Australia 4%
Russia 2%Italy 2%UK 6%Spain 3%Brazil 3%
France 3%
Germany 2%
China 2%
Singapore 1%
Other 34%
Motivations for moving to Blueseed Not important Somewhat important Important Very important Critical
An alternative to having to get US work visas for myself or other company
founders25.7% 16.0% 17.8% 18.8% 21.7%
An alternative to having to get US work visas for my employees
26.3% 21.9% 21.7% 18.4% 11.7%
Streamlined legal and regulatory environment made with low overhead in
mind7.5% 13.4% 26.5% 28.1% 24.5%
Ease of finding talent 6.3% 14.0% 22.5% 30.8% 26.5%
Proximity to Silicon Valley's investors 3.4% 10.5% 19.2% 30.8% 36.0%
Living and working in an awesome startup- and technology- oriented
space1.0% 2.8% 10.9% 30.0% 55.3%
Coolness factor / fame 14.2% 16.0% 24.3% 22.5% 23.1%
Top motivation for moving to Blueseed
“Living and working in an awesome startup- and technology- oriented space”
High-tech university dorm
24/7 hackathon & coworking space
Awesome startup- and technology-oriented space
The Blueseed formula SOLUTION
Live/work/play environment onboard:“Googleplex of the Sea”
OFFER
Cabins for different budgetsOFFER
OFFER
Customizable office space
Recreational facilities OFFER
24/7 food/medical/securityOFFER
Wireless 1Gbps+ link to shore
Liquid Robotics ocean drone relays mesh networkO3b satellite backup,130ms round-trip, 500Mbps
Future: fiber-optic cable
OFFER
High-speed Internet access
Transportation to/from the mainland• Large capacity round-trip ferry boats, morning and evening• ~30 minutes from ship to shore
When time is critical, helicopters• Medical or other emergencies• ~20 minutes to Palo Alto
Shared equipment:
3D printers etc
GymsPool
Sports fields
Entertainment venues
Convenience stores Game rooms Post Office
ATMs
Cafes Food service Concierge
OFFER
Amenities onboard
Accelerator programs
300 startups on the ship means…
…multiple cohorts in parallel
…variable-length programs, e.g.
• 3 months for web startups• 6 months for biotech or robotics companies
OFFER
Startup accelerator services
Connection with Silicon Valley
startup events
Access to angel investors and
venture capital
Networking activities
Mentors and training
programs
Legal help: immigration,
IP/patents etc.
Events onboard + more…
OFFER
No visas or immigration restrictions
Much lower regulatory costs – you choose where to incorporate
Simplified business and regulatory environment
Bring into your team talent from anywhere in the world
No stressful commuting, no traffic
“Perpetual hackathon” atmosphere
You’ll be in the middle of cutting-edge innovation
SOLUTION
Benefits of being aboard Blueseed
Backup plans
Source: http://online.wsj.com/article/SB10001424053111903480904576512250915629460.html
OFFER
When moving to Blueseed, you’ll deposit an amount to cover transportation to your country of choice
Q: Did your startup fail?A: The startup in the next cabin is probably hiring.
“[in Silicon Valley] every company I work with is absolutely starved for talent: qualified software engineers, managers, marketers and salespeople”- Marc Andreessen, August 2011, Wall Street Journal
83% of the tech startups in the U.S. are looking to hire in 2012. – Silicon Valley Bank survey
Cost of living aboard Blueseed (preliminary estimates; Blueseed doesn’t impose tax)
•More cash + less equity, or
•Less cash + more equity
Combination of rent + startup equity
Cash rent: from $1200/person/month (shared room for 4)
Up to $3000/person/month (private room with ocean view)
•San Francisco rent (May 2013): $2,211/mo
•Plus desk at startup incubator: $500+/mo.
Cost includes office space!
OFFER
Blueseed’s interests are aligned with yours
Blueseed taking equity in
startups
We succeed if you succeed
OFFER
How we’ll work to reduce your rent (extra revenue streams)
•Shows like “Shark Tank” can bring significant revenue
Media
•Offices aboard for big companies looking to hire brilliant entrepreneurs like you
Talent scouting
•Since 2009, Google has been acquiring one new company per week. We’ll own equity in startups onboard, and cash in on exits.
Early acquisition of startups
•Rent out space for events, conferences etc.
•Hotel rooms for visitors
•Other partnerships enhancing the ecosystem
We’ll be a unique environment
OFFER
Visas you’ll need
To live and work aboard Blueseed: no visa
To travel to the U.S. mainland:• business visa (B-1), or• tourist visa (B-2; often combined with B-1), or• Visa Waiver (some countries, valid only 3 months), or• transit visa (least recommended)
B1/B2 visas generally valid for 10 years
Must spend at most 180 days/year in the U.S.
Americans (e.g. investors) visit Blueseed freely
OFFER
Ease of getting business/tourist visa vs. work visa
H-1B (skilled worker)
L-1 (intracompany transfer)
B1/B2 (business/tourism)
0500,000
1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,000
Average # of U.S. visas granted per year, 2006-2011
Source: http://www.travel.state.gov/xls/FYs97-11_NIVDetailTable.xls
OFFER
What laws apply on board?
•Bahamas (English common law)
The laws of the flag state
•Fair, efficient, speedy, predictable
•You choose what country to incorporate in
International commercial arbitration
•To country of residence/incorporation
•No taxes paid to Blueseed
Taxes
•International patents (WIPO)
•United States patents (USPTO)
Patents – as usual
OFFER
FAQ – blueseed.com/faq
•Not a problem: large vessel (200m x 30m)
•Meclizine - inexpensive preventative medication
Seasickness
•Tsunamis/earthquakes doesn’t affect ships at sea
•Hurricanes don’t exist near California
Tsunamis,Hurricanes
•Happen rarely; affect large vessels less
•In case of “force majeure”, we can come to shore
Storms
•We’re the only ones in the region :)
Pirates :)
OFFER
When will Blueseed launch?
Estimated: Q1 2015
R&D we’re conducting – your help is welcome:• Startup incubators – partner with us!• Media exposure – the more, the merrier• Cleantech companies – get in touch• Ambassadors – spread the word!
If you can help – contact us: blueseed.com
OFFER
BlueseedLos Angeles
BlueseedEast Coast
Near future
Long term vision
Concept ship – Terraces
Concept ship – Artful Containers
Concept ship – Hive
Blueseed Atoll concept – stabilization barges and floating breakwaters
Concept ship – Modern Hull
How can you come aboard?
• Investor• Startup network – see blueseed.com/partners• Trusted contact – make a profile on AngelList
Get referred by a reputable:
• Be awesome – apply online – get selected!
Or directly:
Dario MutabdzijaCEO
Dan DascalescuCTO/COO
Baoguang ZhaiBus. Dev.
+partners…advisors…mentors…
ambassadors…
YOU!
TheBlueseed
Team
Apply online
Want to be a partner?
“The people who are crazy enough to think they can change the world, are the ones who do.”
-- Steve Jobs, 1955-2011