Setting Sail With a Unique 'Offshore' Startup

As mentioned in: The Recorder
May 25, 2012
Pillsbury Corporate & Securities partner Justin Hovey is helping a novel tech incubator get off the ground—and off terra firma altogether. Blueseed Inc. hopes to anchor a cruise ship in international waters off the coast of California, where it would give international entrepreneurs access to Silicon Valley’s resources while avoiding the shoals of U.S. visa applications.

In "Pillsbury Partner Helping Float Plans for Startup Ship," Hovey told a major California legal newspaper that he has witnessed the potential demand for the company firsthand: In a single week he received calls from entrepreneurs from Guatemala, Ukraine and Iceland—all of whom hoped to set up shop in Silicon Valley.

"On those initial calls, you're unfortunately dampening their enthusiasm," Hovey told The Recorder, referring to an arduous visa application process that offers no guarantees.

Blueseed says it has a list of more than 150 companies interested in participating in the project. In exchange for its hospitality, Blueseed will receive equity in the fledgling companies.

With help from Pillsbury Senior Associate Heidi Mayon, Hovey has assisted Blueseed with its incorporation and financing, drawn up contracts and other documents, and provided advice on the founders’ pitches to potential investors.

Hovey met Blueseed CEO Max Marty late last year at an event for startups where they were both speakers. The tech networking group 800 Birds helped organize the event, which Pillsbury sponsored and hosted at the firm’s San Francisco office.

At that meeting, Hovey was taken aback by Marty's plans for the ship.

"I said, 'That's the most incredible, bold idea I've ever heard at one of these events,'" Hovey told The Recorder. "It just resonated with me."