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

Blueseed says more than 250 companies from 52 countries expressing interest in floating business ship

Harboured in international waters, meaning only a passport - no visa required

It’s a tentative anchors away for the world’s first floating start-up as more than 250 companies have expressed interest in joining Blueseed, a massive ship anchored in international waters off the coast of California’s Silicon Valley.

The concept of the visa-free metropolis is simple – allow entrepreneurs from any country to do business near Silicon Valley, even if they cannot acquire a United States visa.

Blueseed says that start-ups from 52 different countries are expressing interest, a positive sign in getting the conceptual ship out into the open.

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Floating an idea: A drawing provided by Blueseed shows a ferry docking next their proposed floating city outside of San Francisco

Interested parties: Out of 252 interested companies, Blueseed says that nearly 30 per cent are from the U.S., followed by India, the UK, Australia, and Canada

Nearly 30 per cent of start-ups interested are from the U.S., though India, the UK, Australia, Canada, and Spain also expressed interest.

Blueseed will charge around $1,600 monthly rent, and requires a cut of around 6.5per cent of company shares.

While the massive ship offers hope for entrepreneurs wanting to do business in America, there is still little momentum for so-called start-up visas, which would allow those whose businesses earn more than $100,000 in venture capital to stay in the country indefinitely.

The company’s website states that only a passport is needed to live and work aboard the vessel, and that it will collect no taxes.



'A lot of people say, "I'd like to go to Silicon Valley" but there is no way for them to do it,' said Max Marty, Blueseed CEO and co-founder, told the AP in an interview earlier this year.

Marty, the son of Cuban immigrants, thought of the ship after listening to international classmates of his at the University of Miami business school lament about having to leave the U.S. after graduation. Politicians have wrangled with the issue, but efforts to change the system have stalled.

A life on the ocean waves: Another proposed design for Blueseed's floating start-up city, apparently modelled on a huge container ship

Live to work? This third artist's impression shows how luxurious live-work units would sit along side container storage areas and a helipad

Residents would be ferried ashore with temporary business or tourist visas, which are easier to get, to meet with investors, collaborators, partners and others. Mr Mutabdzija said the ability to have face-to-face meetings cannot be underestimated when trying to gain trust - and secure funds - from investors.

'Yes, we live in an interconnected age with Skype and other video conferencing. But if you want to grow a company, physical interactions are of paramount importance,' Mr Mutabdzija said. 'We're a startup. We ran into this. Some people said if you're not within a 20 mile radius, we won't talk to you.'

The proximity to high-tech's center, Silicon Valley, is also important. 'The talent, the money, the expertise and a cultural acceptance of risk. Elsewhere if it doesn't work out, you're a black sheep and the funds dry up,' Mr Mutabdzija said.

The ship would be a remodeled cruise ship or barge that Blueseed leases or owns.

It would have all the high-tech amenities expected of a start-up incubator and the look of employee-friendly Internet giants Facebook and Google, famous for their modern campuses complete with gourmet cafeterias, exercise facilities and an environmentally-sustainable design. A live-work space would cost about $1,200 a month.

Urbanists: More than ever, technology entrepreneurs are choosing the urban charms of San Francisco over the sprawl of neighboring Silicon Valley; Blueseed's CEO hopes talent will also be drawn to their ship

Logistical support, including food and other supplies, would come from local businesses along the coast, helping the economies of Half Moon Bay and San Francisco, though it hasn't been determined exactly which port Blueseed would use. A helicopter would also be available for emergencies.

'I would say the whole thing is a perfect metaphor for how in corporate America the practice to grow talent and incubate business locally is drifting away - quite literally'



Bob Dane, Federation for American Immigration Reform



Critics deride the ship as a publicity stunt, and say investors would be better served contributing to ventures that help Americans create businesses.



'I would say the whole thing is a perfect metaphor for how in corporate America the practice to grow talent and incubate business locally is drifting away - quite literally,' said Bob Dane, of the Federation for American Immigration Reform, which advocates for limited immigration.

But supporters of foreign entrepreneurship say immigrants are responsible for some of the most successful businesses in the world and if the U.S. doesn't try to attract them, others will.



'The ship may sound like a crazy idea but it illustrates how seriously flawed the immigration system here is,' said John Feinblatt, who runs Partnership for a New American Economy, which advocates for immigration reform.



The organization published a report in June that said 40 percent of Fortune 500 companies were founded by immigrants or their children. Feinblatt said countries including Chile, Singapore and the United Kingdom have programs to attract immigrant entrepreneurs.

'While the U.S. is driving people away, other countries are welcoming them with open arms,' he said. 'If you miss out on them, you miss their talent, their ideas and ultimately the jobs that they create and the taxes that they pay.'

Vision for the future: Blueseed founders Dario Mutabdzija, left, and Max Marty, right, stand on the pier at San Francisco. They hope to raise between some $30million to fund their ambitious scheme, with the launch planned for late 2013

Christopher S. Bentley, a spokesman with the U.S. Citizenship and Immigration Services, said the agency has not seen the proposal and it's premature to comment. Maritime experts say such an idea is feasible, but very costly.

'A good single point mooring costs in the millions of dollars but it could restrain a ship-shape vessel in quite severe storms and in deep water,' said Bil Stewart, CEO of Houston-based Stewart Technology Associates, an engineering consultancy specialising in offshore and marine structures.

'But it would be prudent if the vessel had its own propulsion if you had a Pacific hurricane come along,' Stewart added.

Blueseed's idea has started gaining steam. Silicon Valley investor Peter Thiel, a founder of PayPal, announced he would lead Blueseed's financing search. Mr Thiel has been a big supporter of 'seasteads' - self-ruling cities on the ocean - and both Mr Marty and Mr Mutabdzija worked at the Seasteading Institute.

Blueseed wants to raise $10million to $30million over the next year and a half. The goal would be to launch in late 2013.