More at www.blueseed.com
Twitter: @BlueseedProject
Blueseed is the live/work/play community for 1000 startup entrepreneurs, on a cruise ship to be stationed 30 minutes by ferry from the coast of Silicon Valley. The location allows entrepreneurs from anywhere in the world to start or scale their companies without needing U.S. work visas. Instead, easier-to-obtain B1/B2 business/travel visas will be used to arrive on Blueseed and to visit the mainland.
For more details, please see www.blueseed.com
2. Table of contents
1. There's no startup place like Silicon Valley
2. But there’s no U.S. entrepreneur visa
3. Blueseed’s novel win-win solution
4. What will we offer?
1. Cost of living
2. Visas
3. Questions
5. How can you help?
3. What’s the best place on Earth
for a startup entrepreneur?
Silicon Valley? Keep readingTell me
more
Skip next 6
slides
Of course
R
E
A
S
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N
4. Silicon Valley is the best place for
startups – a unique combination of:
Ideas Capital Culture
R
E
A
S
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N
Silicon Valley is the best place for startups
5. Ideas – US is #1 place to file patents
Source: WIPO - http://www.wipo.int/ipstats/en/statistics/patents/
R
E
A
S
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N
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
Germany
Russian Federation
China
European Patent Office
Republic of Korea
Japan
US
Patents by office, 1995-2010
6. Ideas – Silicon Valley is #1 U.S. area
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
San Francisco Bay
Area
New York-
Northern New
Jersey-Long Island
Los Angeles-Long
Beach-Santa Ana,
CA
Boston-
Cambridge-Quincy,
MA-NH
Top U.S. regions by number of
US Patent & Trademark Office patents, 2006-2010
Source: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cls_cbsa/allcbsa_gd.htm
R
E
A
S
O
N
8. Sacramento/N.Cal
South Central
Upstate NY
North Central
Philadelphia Metro
SouthWest
Colorado
Northwest
San Diego
DC/Metroplex
Southeast
Midwest
Texas
LA/Orange County
NY Metro
New England
Silicon Valley
US venture capital investments by region, 2011
Capital – Silicon Valley is #1 area
R
E
A
S
O
N
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 2011
http://bit.ly/PWCMoneyTree2011
9. Culture – Silicon Valley is unique
Risk taking It’s OK to fail Engineering
tradition
World class
universities
Cultural
diversity
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N
10. So you want to come to
Silicon Valley…
P
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B
L
E
M
But you are a foreigner!
11. “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
12. 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-2
Treaty Investor,
or Employee of
✓ ✓ 2+2+2… yrs
Not for India, Brazil, Russia, China
“substantial” investment (~$100K)
must own 50%+ of the business
can’t convert to Green Card
EB-5 Investor ✓ ✓ Never Must invest $1M+ and create 10 jobs
H1-B
Skilled worker
✓ ✗ 3+3 yrs
If laid off, must find new sponsor
ASAP – there is no grace period
Cap at 65,000 per year
L-1
Intra-company
Transfer
✓ ✗ 3 yrs
Must have worked at foreign
branch for 1+ years
No U.S. visas for entrepreneurs
Inadequate existing alternatives:
P
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13. 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/
20. 30 minutes to shore 20 minutes to Palo Alto
Convenient travel both ways
by ferry, helicopter
3
21. Use B1/B2 business/tourist visa
to travel to mainland & stay <180 days
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
H-1B (skilled
worker)
L-1 (intracompany
transfer)
B1/B2
(business/tourism)
Average # of U.S. visas granted per year, 2006-2011
Source: http://www.travel.state.gov/xls/FYs97-11_NIVDetailTable.xls
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F
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4
22. 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
23. S
O
L
U
T
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N
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 waters
Travel to the US using business/tourist
visas, which are easier to obtain
26. On TV – CBS, CNN, BBC etc. (click to play videos)
27. Startups that expressed interest
Latest 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 2%
Other 34%
28. 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
founders
25.7% 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
mind
7.5% 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 space
1.0% 2.8% 10.9% 30.0% 55.3%
Coolness factor / fame 14.2% 16.0% 24.3% 22.5% 23.1%
29. Top motivation for moving to Blueseed
“Living and working in an awesome
startup- and technology- oriented space”
36. Wireless 1Gbps+ link to shore
Liquid Robotics ocean drone
relays mesh network
O3b satellite backup,
130ms round-trip, 500Mbps
Future: fiber-optic cable
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High-speed Internet access
37. Transportation to/from the mainland
• Large capacity round-trip ferry boats,
morning and evening
• ~30 minutes from ship to shore
38. When time is critical, helicopters
• Medical or other emergencies
• ~20 minutes to Palo Alto
40. 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
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F
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41. 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…
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42. 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
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Benefits of being aboard Blueseed
43. Backup plans
Source: http://online.wsj.com/article/SB10001424053111903480904576512250915629460.html
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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
44. 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!
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45. Blueseed’s interests are aligned
with yours
Blueseed
taking
equity in
startups
We
succeed if
you
succeed
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46. How we’ll work to reduce your rent
(extra revenue streams)
• Shows like “Shark Tank” can bring significant revenueMedia
• Offices aboard for big companies looking to hire
brilliant entrepreneurs like youTalent 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
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47. 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
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48. Ease of getting business/tourist
visa vs. work visa
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
H-1B (skilled
worker)
L-1 (intracompany
transfer)
B1/B2
(business/tourism)
Average # of U.S. visas granted per year, 2006-2011
Source: http://www.travel.state.gov/xls/FYs97-11_NIVDetailTable.xls
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49. 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
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50. 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 :)
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51. 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
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59. 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:
63. “The people who are crazy enough to think they
can change the world, are the ones who do.”
-- Steve Jobs, 1955-2011
www.blueseed.com
info@blueseed.com
Editor's Notes
If the audience agrees that Silicon Valley is the best place for startups, skip the next 5 slides.
Paul Graham, the venture capitalist behind Y Combinator, believes that startups thrive in startup hubs.
It’s cool to start a startup.
Risk tolerance.
Stanford, Berkeley, UC San Francisco, UC Santa Cruz.
On the H-1B layoff grace period: there is no official grace period after you are laid off.
“Technically there is no grace period. An H-1B worker is considered out of status immediately after the employer-employee relationship is terminated. However, USCIS officers often overlook a brief gap between status. This is solely at the discretion of the adjudication officer and is not at all guaranteed.”
http://immigrationroad.com/visa/h1b-worker/h1b-visa-status-and-layoff.php
http://www.visapro.com/Immigration-Articles/?a=1288&z=48
The Startup Visa Act has seen no traction in Congress.
http://www.govtrack.us/congress/bill.xpd?bill=s112-565 – also, “The majority of bills and resolutions never make it out of committee.”
Amit Aharoni founded CruiseWise (an online cruise booking company), secured $1.65 in venture funding, and created 9 jobs in San Francisco. USCIS sent him a letter notifying him that his visa has expired and he needs to leave the country.
The guys from BufferApp (Twitter scheduling app, which Blueseed uses too) got $400,000 in funding, then their visas expired and they had to move out of the U.S.
Amit Aharoni founded CruiseWise (an online cruise booking company), secured $1.65 in venture funding, and created 9 jobs in San Francisco. USCIS sent him a letter notifying him that his visa has expired and he needs to leave the country.
The guys from BufferApp (Twitter scheduling app, which Blueseed uses too) got $400,000 in funding, then their visas expired and they had to move out of the U.S.
Amit Aharoni founded CruiseWise (an online cruise booking company), secured $1.65 in venture funding, and created 9 jobs in San Francisco. USCIS sent him a letter notifying him that his visa has expired and he needs to leave the country.
The guys from BufferApp (Twitter scheduling app, which Blueseed uses too) got $400,000 in funding, then their visas expired and they had to move out of the U.S.
This barbed wire metaphor was appreciated by a legislator we spoke with.
This is the first of the five key elements of our solution.
The Ocean Star Pacific. 512 cabins. 714/1231 pax. Built 1971. LOA 168m. 23149 GT.
3.68M B1/B2 visas granted in 2010, vs. 117,000 H-1B visas.
Work on the ship
Come to shore for business. Can’t work on shore, that’s what the ship is for.
Videos of our team on our YouTube channel:
youtube.com/user/BlueseedProject
Blueseed has been making waves in the news…
Ars Technica, Associated Press, C|NET, TechCrunch, Venture Beat, Huffington Post, The Economist, USA Today, Fox Business News (3 times so far), Wired
Internationally: Economic Times of India, Financial Times of Deutschland, Globe and Mail, El Pais, The Register, La Tribune
Updated statistics at blueseed.co/come-aboard/results
Top motivations:
Living and working in an awesome startup- and technology- oriented space
Proximity to Silicon Valley’s investors
Streamlined regulatory environment
Top motivations:
Living and working in an awesome startup- and technology- oriented space
Proximity to Silicon Valley’s investors
Streamlined regulatory environment
Focusing on creating an ecosystem that is conducive to collaboration, comfort, etc
From $1200 for a cabin shared among 4, to $3000 for a deluxe cabin.
Rent includes cabin and office space.
Weather might be a bit cold, but wall-climbing in the summer will be feasible.
24/7 food, medical and security services. Image credit: Disney.
+ WiMAX relay buoy mesh network
Marc Andreessen is the co-founder of Netscape and Ning, and sits on the board of directors of Facebook, eBay, and HP. His investment firm Andreessen Horrowitz owns a majority stake in Skype.
We are cost-competitive with San Francisco.
Blueseed is incentivized to help startups aboard succeed.
B1/B2 visa combo recommended.
3.68M B1/B2 visas granted in 2010, vs. 117,000 H-1B visas.
For more questions, see our FAQ page.
If the US fixes visa immigration – truly fixes it, meaning they do a much better job than the startup VISA bill proposes and really solve the issue – Blueseed would move from being from 12 miles to 1 mile offshore. And if even that somehow fails, and Blueseed was the catalyst for this sort of policy change, we’d sleep very well at night. There are many other important problems to solve and we would be eager to go and solve them as well.
Blueseed’s custom built vessels dotting the world’s oceans
Videos of our team on our YouTube channel:
youtube.com/user/BlueseedProject
http://blueseed.co/come-aboard
http://blueseed.co/come-aboard
Optimism, pessimism, fuck that. We’re gonna make it happen.
-- Elon Musk, SpaceX