Virgin Hyperloop One has raised $50 million in an effort to build a high-speed transit system.
This new investment is being funded by Russia’s Caspian Venture Capital and DP World, a large port operator in Dubai. Virgin Loop One technology would mostly likely be commercially applied in Russia and the Middle East. This fresh flow of funds is helping the company stay afloat, as the company was on the brink of running out of money, which could have jeopardized the jobs of 300 people working with the company.
According to a source, following this funding round there would be some “organizational restructuring.”
Additionally, Virgin Group founder Richard Branson took over as the chairman of Virgin Hyperloop One, as the former chairman of the company, Shervin Pishevar, recently stepped down from the company due to sexual assault allegations.
Hyperloop One was rebranded as Virgin Hyperloop One last October following a major investment by Branson. Branson’s decision to Chair the company may help them land their first contract to build a hyperloop in 2018.
Hyperloop One was formed in 2014 to construct a working model of a tube-based transportation system which was developed by Tesla and SpaceX CEO Elon Musk. The company announced two successful tests, however, they only reached a fraction of the 700 miles per hour which they hoped to achieve.
In 2016, the company let go of one of its co-founders and a few other employees following a dispute which led to a legal battle.
The last one year did not turn out to be a good for the company considering the fact that the company performed several major demonstrations of its super fast transportation system, but they couldn’t move past the stage of conducting feasibility studies with their government partners. The company also settled a lawsuit with one of its co-founders over competing claims of harassment and sabotage.
Virgin Hyperloop One has not yet responded with any comment following the news.