Branson Joins Hyperloop Board as It Targets $200 Million Funding

Billionaire Richard Branson has joined the board of Hyperloop One, as the futuristic mode of tube-based transportation embarks on a major fundraising round, according to Bloomberg.

Branson’s Virgin Group has invested in Hyperloop One, and the new company will be re-branded Virgin Hyperloop One. Their investment is part of the $85 million Hyperloop raised in September, which included backing from global container-terminal operator DP World, Caspian VC Partners, and WTI. Hyperloop is additionally looking to raise over $200 million early next year.

The tube-based transportation system was first theorized in a white paper in 2013 by Branson’s fellow billionaire Elon Musk. In July, Musk, who isn’t involved in Hyperloop One, revealed on Twitter that he’d received “verbal government approval“ to build a hyperloop capable of ferrying passengers between New York and Washington in 29 minutes.

Hyperloop One, which has been testing in Nevada, with a pod reaching speeds of 192 miles per hour traveling a distance of 1,433 feet, is burning through money, and will need to raise new capital by the middle of 2018. Hyperloop has already raised more than $150 million in debt and equity.

“After visiting Hyperloop One’s test site in Nevada and meeting its leadership team this past summer, I am convinced this groundbreaking technology will change transportation as we know it and dramatically cut journey times,“ Branson said.