So they are going to buy/build a 1,000 passenger ship (and a ferry, and a helicopter), fit it out top to toe with custom designs (including gym, pool, sports facilities, and apparently enough to keep you from going crazy), staff the thing (including security), maintain it, ship food (and people) back and forth from the mainland, etc.
And where exactly do they make their money? A bed on this thing is going to be mighty expensive....
An estimate for the rent was specified in the slides: A room and office space is 1200$/person/month in a shared room or 3000$/person/month for a single with ocean view.
Ok. Sorry my sarcasm hasn't come through. I read that. The point of what I'm saying is that I dont think that is possible.
As a back-of-the-fag-packet calculation: 1,000 beds, if you are extremely lucky and well prepared 80% paid occupancy (staff, as well as unoccupied rooms), at $1,600pcm (their website mentions this as an average). ~$15m a year gross income. Minus operating costs, of which there are many large ones listed above, salaries etc. you'd be extremely lucky to be making a couple of million a year. Considering the ship alone is going to cost you > $50m for anything servicable (let alone the fanciful designs on their website), I think you'd be lucky to pay it off in 20 years.
First, paying off a house in 20 years is pretty decent, and people make those investments all the time.
Second, this is Peter Thiel throwing money at his ideals. He's probably more concerned with generating publicity for the ideas than making a perfect investment.
Third, they are also taking equity. A single or two good buy-outs or IPOs could pay for the whole thing.
> " He's probably more concerned with generating publicity for the ideas than making a perfect investment."
And that's the problem. This strikes me as a Bioshock-y move - a libertarian who's sick of the "oppressive" government getting in his way, so now he's going to create his libertarian government-free paradise floating in the open seas.
... and has less to do with actually funding startups. The startups in this case seem like a means to an end, and as a startup I'd be very unsettled by that.
Not to mention, I can pay similar rent here in SF and not give up a big chunk of equity just to have office space.
Comments
So they are going to buy/build a 1,000 passenger ship (and a ferry, and a helicopter), fit it out top to toe with custom designs (including gym, pool, sports facilities, and apparently enough to keep you from going crazy), staff the thing (including security), maintain it, ship food (and people) back and forth from the mainland, etc.
And where exactly do they make their money? A bed on this thing is going to be mighty expensive....
An estimate for the rent was specified in the slides: A room and office space is 1200$/person/month in a shared room or 3000$/person/month for a single with ocean view.
Rent and equity from startups. They mention this in the deck.
Ok. Sorry my sarcasm hasn't come through. I read that. The point of what I'm saying is that I dont think that is possible.
As a back-of-the-fag-packet calculation: 1,000 beds, if you are extremely lucky and well prepared 80% paid occupancy (staff, as well as unoccupied rooms), at $1,600pcm (their website mentions this as an average). ~$15m a year gross income. Minus operating costs, of which there are many large ones listed above, salaries etc. you'd be extremely lucky to be making a couple of million a year. Considering the ship alone is going to cost you > $50m for anything servicable (let alone the fanciful designs on their website), I think you'd be lucky to pay it off in 20 years.
First, paying off a house in 20 years is pretty decent, and people make those investments all the time.
Second, this is Peter Thiel throwing money at his ideals. He's probably more concerned with generating publicity for the ideas than making a perfect investment.
Third, they are also taking equity. A single or two good buy-outs or IPOs could pay for the whole thing.
> " He's probably more concerned with generating publicity for the ideas than making a perfect investment."
And that's the problem. This strikes me as a Bioshock-y move - a libertarian who's sick of the "oppressive" government getting in his way, so now he's going to create his libertarian government-free paradise floating in the open seas.
... and has less to do with actually funding startups. The startups in this case seem like a means to an end, and as a startup I'd be very unsettled by that.
Not to mention, I can pay similar rent here in SF and not give up a big chunk of equity just to have office space.