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Ship Ahoy - Startup Incubator

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  • Ship Ahoy - Startup Incubator

    For some, the idea of people occupying an inoperative ship berthed by AT&T Park may conjure up images of squatters, rum and beef jerky.


    But the "passengers" aboard this vessel - a 135-foot ferry that once hauled cargo through Norway's icy waters - are not exactly slumming it. They are part of a startup incubator, a live/work space called the Icebreaker for more than a dozen small companies.


    A recent visit to the lower deck found 25-year-old Paul Baumgart, a summa cum laude computer engineering graduate from UC San Diego, offering truffle oil and duck fat popcorn. That night's dinner discussion was about commercial space, and several members of NASA, including an astronaut, came to chat. A basset hound mix named Lulu slept nearby.


    "Does anyone need wine?" Baumgart asked as his friends climbed down the narrow metal steps.






    Beyond friends

    For the past two years, the ship's owners - Brewster Kahle, founder of the Internet Archive, and Creon Levit, a project manager at NASA Ames Research Center - have been inviting entrepreneurs from some of the wonkiest, most serious startups to work and host events aboard.


    "The original idea was that I'd buy the ship to live on myself, but then I got married," Levit said, sighing. "But I didn't want it to just sit idle, and none of us had intentions of going into the maritime business, so I thought I'd just open it up, let people come use the space."
    So the ship's new captains - Levit, Kahle and their partner Ulrich Gall - decided to make it a space for their friends to hang out.


    On the top deck, they put in fake grass, a hammock and a picnic table. They made the car deck, the cavernous midsection, into a co-working office. They turned the crew deck down below into a salon, with a long dinner table, velvet couches, and a fully stocked galley, or kitchen. Tucked in closets and crawl spaces are some small living quarters with neatly made beds.


    Levit assumed his friends would come by for a few hours and sit alone with their laptops, but the crew quickly grew beyond his friends, and business collaboration came naturally. He attributes the energy to the architecture of a ship versus a building.


    "Buildings are oriented toward compartmentalization, isolation, privacy, rooms," he said. "Ships, on the other hand - as anyone who's spent a little time on one can tell you - have very little privacy and have large shared work space."


    Levit and Kahle had bought the ship in 2011 from Olle Lundberg, an architect who had redone the interior in a luxe modern style. Lundberg, who'd recently finished Larry Ellison's metal and glass San Francisco home and the Slanted Door restaurant, had brought the ship from Iceland through the Panama Canal to the Mission Bay piers by the ballpark. He cut light wells, put in glass doors and lived onboard.








    Eviction notice

    When Levit bought the ship (apparently first Facebook President Sean Parker was also bidding for it), he put in the contract that the long cypress table and some of Lundberg's hot sauce collection had to stay aboard. They've operated quietly for two years, with Levit and the co-founders taking equity instead of rent from the companies aboard.


    But this summer, the Port of San Francisco issued an eviction notice - people can't live on a boat at Pier 50, port officials said, and any boat there has to be fully operational.


    There are receptive harbors - "but a co-working space in San Rafael is just not the same,"

    Baumgart said. "What excites me about the space is that cool people come to me here. This neighborhood is where things happen. Instead, what, they want to build it into a bigger Giants parking lot?"


    Levit, with shoulder-length gray hair, sat on one of the large leather couches on the cargo deck. His laptop had a NASA sticker on it. "We've had a series of misunderstandings with the port - we've made some mistakes, and they've made some assumptions that weren't true," he said.


    Like that this was a party ship?


    "Like that."






    http://www.sfgate.com/technology/art...#photo-5298435

  • #2
    Re: Ship Ahoy - Startup Incubator

    Ah, the quaint idea that inventors and innovators like to hang out with others and drink wine. The handful of inventors I've none like to work in isolation and sitting around eating pop corn with truffle oil would be considered a waste of time. Many inventors (perhaps all) are social mis-fits who are trendy and see the world differently (I suspect this is why ideas can spring from their brains).

    The world is littered with Accelerators and people have forgotten they were once called Incubators (and ultimately viewed as Incinerators). Here is a quote from a Businessweek article from 2000..
    "Startups with good ideas can get funding in the open market, so why go to an incubator?" asks Forrester Research analyst Charles Rutstein. Others are more blunt about incubators. "They're incinerators--for cash and for peoples' careers," says L. John Doerr, a partner at Silicon Valley venture firm Kleiner Perkins Caufield & Byers."
    http://www.businessweek.com/stories/...or-incinerator

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    • #3
      Re: Ship Ahoy - Startup Incubator

      It's a boat. Isn't the advantage of a boat that you can move it? Isn't the advantage of a building that it's not going anywhere?


      "Buildings are oriented toward compartmentalization, isolation, privacy, rooms," he said. "Ships, on the other hand - as anyone who's spent a little time on one can tell you - have very little privacy and have large shared work space."
      This guy totally missed the difference between boats and buildings. If you lease a portion of a building you can partition it any way you like. My work place is one big empty space with a few conference rooms and bunches of cubes. Cube walls are easy to move and privacy is non existent. I have not had an office at work for over 20 years (and supposedly I've been promoted several times).

      Comment


      • #4
        Re: Ship Ahoy - Startup Incubator

        Is anyone familiar with Tech Shop?

        I've posted about it a few times in the past.

        They appear to be trying to fill the nebulous space where an individual with an idea/need to create something tangible doesn't have many well supported, well known, or affordable options other than to wander off into the unknown alone.

        They don't seem to fit the traditional incubator space, but they definitely seem to be trying to create local communities.

        I would guess their elevator pitch to be something along the lines of: being a community driven McDonald's of making stuff.

        It looks like TechShop is now seeking crowdsourced direct investors/shareholders as well as lenders for it's individual facility buildouts.

        Another outfit called Founders Institute seems to be trying to accomplish a similar community building goal but focused on company foundation and idea development(compared with TechShop's tangible product focus).

        I've posted a few times about them both.......not much of a response yet, but I reckon they're both worth keeping an eye on if only to see some players working at the "coal face".

        I remember when Bill Gross opened up idealab! nearly 20 years ago.

        What a really cool idea ands it seems to have stood the test of time with a number of successes.

        To me, both TechShop and Founders Institute are working in similar product/idea spaces but obviously at a lower/egalitarian level.

        Comment


        • #5
          Re: Ship Ahoy - Startup Incubator

          Originally posted by BK View Post
          Ah, the quaint idea that inventors and innovators like to hang out with others and drink wine. The handful of inventors I've none like to work in isolation and sitting around eating pop corn with truffle oil would be considered a waste of time. Many inventors (perhaps all) are social mis-fits who are trendy and see the world differently (I suspect this is why ideas can spring from their brains).

          The world is littered with Accelerators and people have forgotten they were once called Incubators (and ultimately viewed as Incinerators). Here is a quote from a Businessweek article from 2000..

          "Startups with good ideas can get funding in the open market, so why go to an incubator?" asks Forrester Research analyst Charles Rutstein. Others are more blunt about incubators. "They're incinerators--for cash and for peoples' careers," says L. John Doerr, a partner at Silicon Valley venture firm Kleiner Perkins Caufield & Byers."

          http://www.businessweek.com/stories/2000-10-22/incubator-or-incinerator
          Agreed. Reminds me of the self-selecting intelligentsia that used to hang out in North Beach coffee shops in S.F. and recite poetry in the 1960's. A quaint, self-absorbed idea at best.

          Something like this (below) seems a bit more likely to have a successful (spelled, "profitable") outcome - IMO:

          • September 22, 2013, 7:44 PM ET


          Hershey Goes to Singularity University



          MOUNTAIN VIEW, CALF. – Five executives from Hershey Co. listened closely Thursday as the CEO of 3D Systems Corp. explained how 3D printers can use additive printing processes to manufacture objects using sugar. Hershey, and other Fortune 500 companies such as The Coca-Cola Co., have come to Singularity University’s 5-day Innovation Partnership Program that concludes Monday, to learn about advances in fields such as manufacturing, artificial intelligence and robotics.

          Some 100 executives are attending the IPP because of concerns that their corporate environments are keeping them from exposure to rapid technological change that could disrupt their businesses. “We’re living in an interesting time where the rate of innovation around the world is exploding, and a company that is dependent upon innovation within their four walls is ultimately going to fail,” said Peter Diamandis, executive chairman of Singularity University and CEO of the X Prize Foundation.

          In addition to attending these sessions, Hershey’s executives say the company is weighing whether to join Singularity University Labs, an incubator recently opened by Singularity University at the NASA Ames Research Center, where corporate innovation teams can work side by side with startups to share ideas.


          IPP, a partnership between Singularity University, the X Prize Foundation and Deloitte Consulting LLP, is designed to connect leaders of Fortune 500 companies with innovative startups through a series of presentations and other events expected to take place over a number of years. Deloitte also sponsors CIO Journal. The first set of IPP presentations took place in May.


          “We’re here because we do understand the dynamic forces of the exponential change that’s happening and the ways in which that’s going to transform all industries and certainly our industry as well,” Michael Wege, senior vice president, chief growth and marketing officer at Hershey, told CIO Journal. He said that technologies such as 3D printing could have an impact on Hershey’s supply chain. 3D Systems CEO Avi Reichental noted that, while printing chocolate is still difficult, consumers could eventually be able to print food in their homes.

          Hershey is one of only 57 companies that have made the Fortune 500 list every year since it began in 1955, according to Fortune Magazine. Mr. Diamandis likes to point to the turnover rate in the Fortune 500 list as proof that companies need to act now to save themselves from coming disruption from startups. Business historian Leslie Hannah found that of the 100 largest companies in the world in 1912, only 20 still held that position in 1995. On average, turnover levels in the Fortune 500 since the 1950s have averaged about 30%, spiking between 40% and 50% in the 1980s and during the second half of the 1990s, according to a report by the Kauffman Foundation.

          Mr. Diamandis predicts that in the next decade, we’ll see the Fortune 500 turnover rate again top 40%. The increase in breakthroughs in various fields now makes it possible for small companies like Instagram – which Facebook Inc. acquired in 2012 — to compete with and even supplant large companies like Eastman Kodak Co.

          The CEO of one Fortune 500 company, casually dressed in jeans and a green shirt, sat in the front row alongside members of his senior leadership team. He declined an interview because he didn’t want to tip his competitors off to his company’s attendance at IPP.

          Hershey executives will bring speakers from the IPP event to its corporate offices in October so that 50 or 60 of the company’s top talent can hear about innovations on the horizon. At Singularity University, “we’re in an environment with some of the best, open-minded thinking about the future that one can experience,” said Mr. Wege.

          A few companies, including Coca-Cola, have already joined Singularity University Labs, which includes startups such as Made in Space, which hopes to commercialize 3D printing in space. In contrast to typical incubators, funded by VCs to provide logistical support for start-ups in their portfolio companies, SU Labs encourages established companies to co-locate with startups in the hopes of accelerating the development of its protégés. “Our goal is to incubate what will ultimately be 50 to 100 small companies,” said Mr. Diamandis.

          He imagines that executives from established companies will engage with startups from different industries in the sorts of conversation “that stretches their limits of what is possible and keeps them in a very different mindset,” he said.

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