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This article is about the startup community. For the manga series, see Blue Seed.
Blueseed Inc.
Company typePrivate
GenreStartup incubator
FoundedJuly 31, 2011 (2011-07-31) (incorporated March 29, 2012 as Blueseed, Inc.)
Founder
HeadquartersSunnyvale, California
Key people
  • Max Marty (CEO)
  • Dario Mutabdzija (President)
  • Dan Dascalescu (CIO)
  • Sam Bhagwat (CFO)[2]
Number of employees
5
Websiteblueseed.co

Blueseed is a Sunnyvale, California-based startup company[3] and a seasteading project to create a startup community located on a vessel moored in international waters near the coast of Silicon Valley in the United States. The promoters believe that the location would enable non-U.S. startup entrepreneurs to work on their ventures without the need for a US work visa (H1B), while living in proximity to Silicon Valley and using relatively easier to obtain business and tourism visas (B1/B2)[4] to travel to the mainland. After the conclusion of their incubation on the vessel, successful startups may relocate to Silicon Valley and employ local workforce. The project received wide media coverage and the promise of funding from venture capitalist Peter Thiel,[5] who also supports The Seasteading Institute. Ultimately Peter Thiel did not invest in the seed round. Blueseed later obtained $300,000 in startup funding from Correlation Ventures, Floodgate Fund, ZhenFund, and others in December 2012. [6]

History

Thumbnails of many possible concept vessels proposed for Blueseed's sea platform.

Blueseed was co-founded in July 2011[1] by Max Marty and Dario Mutabdzija, who had worked together at The Seasteading Institute as Directors of Business Strategy and Legal Strategy, respectively. Blueseed's CIO, Dan Dascalescu, who joined the company shortly after its incorporation, is also an ambassador for the Seasteading Institute.[2]

The stated motivations of the project include providing an entrepreneurial alternative to the Startup Visa Act, which has not seen any progress in Congress,[7] and creating "a vibrant workplace for innovative industries to bloom, unencumbered by onerous regulations on new technology-sector businesses".[8] On November 30, 2011, venture capitalist Peter Thiel offered to lead Blueseed's seed financing round.[5] The number of startups that expressed interest in locating on Blueseed grew from 31 on November 14, 2011,[9] to 60 a month later,[10] to over 100 by February 2012,[11] 133 on May 7,[12] 194 as of May 9,[13], more than 250 as of June 6,[14] and 336 on December 13, 2012.[6]

In October 2012, Blueseed made public a page listing its partnerships with a number of other companies and organizations, including startup accelerators, incubators, and venture capitalists in the US and abroad, as well as companies that would help provide services and resources that could help Blueseed operate its seasteading platform.[15] Notable partners include Pillsbury Winthrop Shaw Pittman (legal representation), Fenwick & West (legal representation), Startup Weekend (global pipeline partner), Start-Up Chile (global pipeline partner), Singularity University, the Seasteading Institute (Blueseed being the first commercial seasteading venture), and Real5D (building a virtual 3D model of the Blueseed ship).[15]

In December 2012, Blueseed announced that it had successfully closed its seed round with funding from Mike Maples of Floodgate Fund as well as Trevor Kienzle of Correlation Ventures, Xu Xiaoping and Wang Qiang of Zhenfund, and other investors. Peter Thiel decided not to invest in that round.[6][16]

Blueseed originally estimates a launch timeframe of Q3 2013[17] but has since revised its launch estimate to Q4 2013/Q1 2014.[18][19]

A map of Blueseed's planned sea platform (and two buoys for positioning) in relation to the California coast. Also shown on the map are Half Moon Bay (the closest port) and the Silicon Valley area ranging from San Francisco in the north to San Jose in the south. The thick white line is the boundary of the official territorial waters of the United States. The cusp is due to the presence of the Farallon Islands, over which the US exercises territorial control, located in the north-west part of the map.

Logistics

The project plans to either convert a cruise ship or remodel a barge[3] in order to provide a living accommodations, coworking space, and entertainment facilities for approximately 1,000 customers[20] paying an average of USD 1500 in monthly rent[9] (ranging between $1200 and $3000, and combined with a small equity stake[21]). The vessel would be moored 12 nautical miles from the coast of California, near the port of Half Moon Bay,[10] and would have a crew of 200-300.[21] The location is situated outside the territorial waters of the United States of America, thus not being subject to its immigration laws. Internet connectivity would be provided via submarine communications cable, a laser link, point-to-point microwave link, or a mesh network of wireless routers placed on buoys.[22]

Legality

The Blueseed ship will be moored in the contiguous zone outside the territorial waters of the United States, which according to the United Nations Convention on the Law of the Sea, allows it to be present as long as it does not engage in the exploitation of natural resources, and exhibits no intent of infringing on the customs, fiscal, immigration or sanitary laws and regulations of the United States.[23]

Following the precedent set by the cruise shipping industry, the Blueseed ship will fly the flag of an open registry country such as Marshall Islands or The Bahamas,[24] which will determine the de jure laws that apply on board.

In terms of taxation, Blueseed will not impose tax;[25] however, individuals are responsible for paying their financial dues according to their country of residence. Corporate tax will be paid by startups located on board based on the country of incorporation.

Businesses that are generally illegal in the United States, such as gambling or prostitution, will be forbidden on the ship.[26]

Reception

Blueseed has received praise from people in Silicon Valley for their novel and innovative workaround for the visa problems that entrepreneurs face. Craig Montuori, an evangelist for the Startup Visa, writes of Blueseed that "I can vouch for their passion on creating workarounds for jobs creating foreign entrepreneurs while waiting for Congress to create a Startup Visa as someone who has been advocating for Startup Visa for the past year."[27] Cyan Banister writes for TechCrunch: "Hats off to Max and Dario for dreaming big and trying to make a difference in the world."[28] Stewart Alsop, a startup co-founder, writes on Quora: "I really have no doubt as to whether Blueseed will be successful at promoting innovation. It will have close access to investors, an international environment without precedent that I can find, and a self selecting population that will be highly entrepreneurial."[29] Natalie MacNeil, an Emmy Award winner who has applied to be on board Blueseed's vessel, writes, "This is the perfect solution for me and my company; it’s everything I could possibly want. If I could, I would move my startup to Silicon Valley in a heartbeat but there isn’t a visa option for the stage I’m at and budget I’m working on. Up until discovering Blueseed, my lawyer advised me to get a job with a digital media firm since I qualify for an Extraordinary Ability Visa because I’m an Emmy Award winner. That Visa could lead to a Green Card in a few years and then I’d be able to continue with my business. But I truly believe the time for my business is now. I have so much momentum and I want to run with it. Thank you for dreaming up such an awesome incubator concept and I hope to meet the Blueseed team on board in 2014!"[6]

Criticism of Blueseed has come from two directions: legal and economic. Some critics of Blueseed believe that Blueseed's legal position is precarious because the US immigration and tax authorities, as well as the Navy and Coast Guard, may not agree with Blueseed's interpretation of the law and hence may not cooperate with Blueseed. The other direction of criticism is that Blueseed will not be economically viable due to the huge cost of obtaining and operating a ship and the difficulties with attracting quality startups to living on a ship.

References

  1. ^ a b Friedman, Patri (31 July 2011). "The Seasteading Institute – July 2011 Newsletter". The Seasteading Institute. Archived from the original on 12 March 2012. Retrieved 12 March 2012.
  2. ^ a b About Us page on Blueseed
  3. ^ a b Donald, Brooke (Dec 19, 2011). "CA startup sees entrepreneur-ship as visa solution". Associated Press. Archived from the original on 12 March 2012. Retrieved 12 March 2012.
  4. ^ "B1/B2 and H-1B visa issuance graphs". Bureau of Consular Affairs. Retrieved 12 March 2012.
  5. ^ a b McCullagh, Declan (2011-11-30). "Peter Thiel floats cash to floating tech incubator". CNET. Retrieved 2012-02-26.
  6. ^ a b c d Banister, Cyan (2012-12-13). "Mike Maples Gets On Board Blueseed's Sea Platform". TechCrunch. Retrieved 2012-12-13. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  7. ^ Anderson, Greg (3 November 2011). "Blueseed Finds International Waters The Answer To US Visa Problems". ArcticStartup. Retrieved 12 March 2012. [...]other groups have come together to motivate congress to allow a "Startup Visa" that would enable entrepreneurs to legally live and start their own businesses in the United States. Unfortunately, since March 2011 when the Startup Visa Act was pushed into Congress, there has been no real progress on the proposed legislation.
  8. ^ Fisher, Anthony L. (January 9, 2012). "Blueseed: The Googleplex of the Sea". Reason (magazine). Retrieved 12 March 2012.
  9. ^ a b Ramsinghani, Mahendra (14 November 2011). "To Skirt Visa Issue, Blueseed Wants To Build Immigrant Startups On International Waters". Huffington Post. Retrieved 12 March 2012. For now, Blueseed has attracted 31 start-ups with varying degrees of interest in this idea.
  10. ^ a b Chatterjee, Rituparna (Dec 15, 2011). "US immigration: Silicon Valley start-up Blueseed vows freedom from visa to entrepreneurs". The Economic Times of India. Retrieved 12 March 2012.
  11. ^ Wiggin, Teke (Feb 7th 2012). "Blueseed: 'Startup Incubator' Could Sail Past Immigration Law". AOL Real Estate. Retrieved 12 March 2012. {{cite web}}: Check date values in: |date= (help)
  12. ^ Taylor, Chris. "Pirates Off Silicon Valley! 133 Startups to Live on This Rogue Boat [PICS]". Mashable. Retrieved 10 May 2012.
  13. ^ "Blueseed Survey for Startups - Public Summary Report". Blueseed. Archived from the original on 10 May 2012. Retrieved 10 May 2012.
  14. ^ "One tech flotation's going well! Hundreds of companies look to secure spots on floating city off coast of Silicon Valley - where workers will be immigrants who can't get visas". Daily Mail. 6 June 2012.
  15. ^ a b "Partners". Blueseed. Retrieved 2012-12-14.
  16. ^ "Blueseed Receives Seed Funding from Xu Xiaoping and Wang Qiang of ZhenFund". Inside China. 2012-12-15. Retrieved 2012-12-20.
  17. ^ Apostolou, Natalie (30 November 2011). "PayPal founder helps steer super geek cruiser". The Register. Archived from the original on 12 March 2012. Retrieved 12 March 2012.
  18. ^ Totade, Manasi (2012-10-26). "Silicon Valley expands -- off the coast of San Francisco on a ship!". The Online Economy: Strategy and Entrepreneurship. Retrieved 2012-12-19. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  19. ^ Nielsen, Kelly (2012-05-25). "Offshore boat nurtures non-US tech startups". Springwise. Retrieved 2012-12-19.
  20. ^ Posner, Michael (Feb. 24, 2012). "Floating city conceived as high-tech incubator". The Globe and Mail. Retrieved 12 March 2012. {{cite web}}: Check date values in: |date= (help)
  21. ^ a b Price, Andrew. "Blueseed: A Floating Startup Incubator Off The California Coast". Fast Company (magazine). Archived from the original on 12 March 2012. Retrieved 12 March 2012.
  22. ^ Garling, Caleb (December 13, 2011). "Startup Ducks Immigration Law With 'Googleplex of the Sea'". Wired (magazine). Archived from the original on December 13, 2011. Retrieved 12 March 2012.
  23. ^ "TERRITORIAL SEA AND CONTIGUOUS ZONE". United Nations Convention on the Law of the Sea. United Nations. Retrieved 10 May 2012.
  24. ^ Riley, Sheila (2012-03-30). "Blueseed Is Floating Startup Incubator For Foreigners". Investor's Business Daily. Retrieved 10 May 2012.
  25. ^ "What taxes will I have to pay?". Blueseed FAQ. Retrieved 2012-May-10. {{cite web}}: Check date values in: |accessdate= (help)
  26. ^ Lee, Timothy (2011-11-28). "Startup hopes to hack the immigration system with a floating incubator".
  27. ^ Blueseed on AngelList
  28. ^ Banister, Cyan (2011-11-10). "The Real Pirates of Silicon Valley". TechCrunch. Retrieved 2012-05-26.
  29. ^ Quora question on whether Blueseed can be a successful startup incubator
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