Virgin Hyperloop One

Virgin Hyperloop One is building a revolutionary new mode of transportation.

It’s called a Hyperloop, a reduced-pressure tube through which pods of passengers and cargo can travel at high speeds.

The concept was proposed by billionaire entrepreneur Elon Musk in 2012. Now, several companies, including Virgin Hyperloop One, are developing the technology and building fully-operational transportation systems.

Virgin Hyperloop One, a company that has Sir Richard Branson’s Virgin group as a minority investor, began testing this technology in 2017, and is now conducting tests on a full-scale track in Las Vegas.

Since launching, Virgin Hyperloop One has achieved significant progress:

• Its investors include General Electric Ventures, Formation 8, Khosla Ventures, Partech Ventures, and DP World.

• The company has developed partnerships with a leading aerostructures supplier and steel producer.

• And it’s initiated feasibility studies in multiple regions across the U.S.

Now the company is raising funds to further its progress on its initial project: a hyperloop traveling from Mumbai, India and Pune, India. This system would transport 150 million passengers annually, and could be operational by 2028.

(Please note: This particular startup is raising funds from “accredited” investors only. An accredited investor is someone with a net worth of at least $1 million, or annual income of at least $200,000, or $300,000 with their spouse.)

Please also note that, in late 2018, Virgin Hyperloop One failed to raise the required capital to execute its operating plan. As a result, the company underwent a recapitalization, and raised $35 million through convertible debt at a $10 million pre-money valuation. It also brought on a new CEO.

The current funding round is priced at $45 million valuation. DP World, a global port operator founded by the merger of Dubai Ports Authority and Dubai Ports International, will invest $52.5 million as part of this round, and has reserved the right to invest an additional $52.5 million pending Virgin Hyperloop One meets certain milestones.

Virgin Hyperloop One’s system aims to move people and cargo in small wheel-less pods inside a vacuum tube at speeds greater than 600 miles per hour — more than twice the speed of today’s fastest trains.

Despite the high speeds, passengers will enjoy a smooth ride to their destination. Said Ismaeel Babur, one of the company’s senior civil engineers in an article from the New York Times, the trip will be so smooth, that “coffee won’t slide even at 600 miles per hour.”

The system works by propelling pods using magnetic levitation through a low-pressure, near-vacuum tube. The low pressure minimizes friction and air resistance, greatly reducing the power needed. And because pods travel inside a tube, they’re not subjected to shutdowns from events such as harsh weather.

Virgin Hyperloop One has developed a partnership with a leading global aerostructures supplier based in the U.S. to build its primary pods. In addition, it’s partnered with Fluor (NYSE:FLR), an engineering and construction firm based in Texas.

The company has collaborated with ArcelorMittal (NYSE:MT), the world’s largest steel producer, and is working toward a partnership to develop and certify its hyperstructure material and design.

In the U.S., Virgin Hyperloop One has taken initial steps toward implementing its systems in several parts of the country.

In Pennsylvania, for example, the Pennsylvania Turnpike Commission has awarded a $2 million contract for a feasibility study on a cross-state hyperloop.

In the Midwest, the company has partnered with a Columbus-based transportation agency on an environmental study for a Chicago-Pittsburgh hyperloop. This study is expected to be completed in Summer 2019.

In Texas, Virgin Hyperloop One is participating in a Tier 2 environmental impact statement study for a hyperloop between Dallas and Ft. Worth.

In Colorado, the company is in the final stages of a state-wide hyperloop network feasibility study. And in Washington, the state is studying a hyperloop option to connect Portland, Oregon and Vancouver, British Columbia.

Most notably, an independent coalition-backed study in Missouri found that, for the construction of a hyperloop along an alignment following I-70:

The projected cost to build the system is within an acceptable range, and has linear infrastructure costs that are 30% to 40% lower than high speed rail systems. Furthermore, the study suggested a travel time savings of 85%, combined with an expected ticket cost similar to a tank of gas.

As a result of the study, in March 2019, the Speaker of the Missouri State House, Elijah Haahr, announced a bipartisan public-private hyperloop panel to explore funding mechanisms for hyperloop R&D.

On a national level, the U.S. Secretary of Transportation announced a council to support hyperloop commercialization. Specifically, the Non-Traditional and Emerging Transportation Technology Council will work to identify and resolve jurisdictional and regulatory gaps to help bring hyperloop technology to commercialization.

Along with plans in the U.S., Virgin Hyperloop One is working on a proposed project in India. This project involves a hyperloop traveling from Mumbai to Pune, which are roughly 93 miles apart.

The company will use funds from this round to work toward receiving awards from India to continue the project, and ensure its demo track will validate a production-ready, scalable system for passengers and freight.

Team Background

Josh Giegel - Co-Founder & CTO

Josh is responsible for leading a team of engineers to make the hyperloop a reality.

His background includes experience in thermodynamics, heat transfer, compressible fluid mechanics, power cycles, turbomachinery, and nonlinear structural analysis.

Before Virgin Hyperloop One, he led research activities at Echogen Power Systems, a startup in the energy industry. He invented four novel supercritical power cycles that significantly improved efficiency and lowered costs.

In addition, he developed custom multi-objective, nonlinear optimization software which provided solutions for reducing engineering costs.

Josh previously worked at SpaceX, where he served as the lead analyst on six different rocket engine tests, including Dragon spacecraft.

He earned a Bachelor’s degree in Mechanical Engineering from Penn State, and a Master’s in Mechanical Engineering from Stanford.

Jay Walder - CEO

Jay has extensive experience in the public transportation industry.

Prior to being named CEO of Virgin Hyperloop One in late 2018, he was CEO or MTR Corporation Limited (OTCMKTS: MTRJF), a transportation company in Hong Kong that runs the country’s Mass Transit Railway system.

In addition, he served as Chairman and CEO of Metropolitan Transportation Authority from 2009 to 2011.

He began his career with the MTA in 1983, working as a financial analyst, Chief of Staff, and Chief Financial Officer. He was the Managing Director for Finance and Development for Transport for London, the government body responsible for London’s transportation system, and was a partner at McKinsey & Company.

Jay is a member of the Executive Board of the International Association of Public Transport, and a member of the Board of Advisors at Eno Transportation Foundation.

He was a professor at the John F. Kennedy School of Government at Harvard University, where he taught Public Policy.

He holds a Bachelor’s degree in Economics from Harpur College, a Master’s in Public Policy from Harvard, and completed an executive program in strategic leadership at Oxford.

Erin Kearns - VP of Operations

Erin has more than a decade of experience in event planning.

She founded House of George, and management and operations consulting company. And she previously produced events in the fashion industry, working with notable clients including Alexander Wang, Diesel Black Gold, and Express.

Erin earned a Bachelor’s degree in Fashion Design at the Academy of Art in San Francisco.

Harj Dhaliwal - Managing Director, Middle East and India

Harj oversees all projects for Virgin Hyperloop One in the Middle East and India.

He has more than 35 years of civil engineering experience, and a track record for managing mega rail and infrastructure projects.

He began his career as a contractor, before moving into consulting and senior management roles in global client and consulting organizations.

For 22 years, Harj specialized in the development and delivery of heavy rail, light rail, and metro projects across Europe and the Middle East. Notably, he was the Program Director for the delivery and operation of the first national heavy railway in the United Arab Emirates – Etihad Rail.

He was Senior Vice President for the International Rail, Transit, and Systems business at Parsons Corporation, and led the development of several euro-rail transit programs in the UK and Ireland.

He is a Chartered Civil Engineer, a member of the Institution of Civil Engineers, and a member of the UK Engineering Council.

Harj earned a Bachelor’s degree in Civil Engineering form Nottingham Trent University in the UK.

Co-Investors

Khosla Ventures

Formation 8

A VC firm whose portfolio includes Oculus, Guardant Health, and Altspace VR.

Partech Ventures

A global VC firm investing in seed-stage and growth-stage companies. Portfolio includes Dailymotion, Scoop.it, and Jaspersoft.

General Electric Ventures

A VC subsidiary of General Electric. Portfolio includes ServiceMax, Teem, and Neuronetics.

DP World

A global port operator formed in 2005 by the merger of Dubai Ports Authority and Dubai Ports International.

Virgin Group

A VC conglomerate founded by Sir Richard Bronson.

Sherpa Capital

A VC fund investing in emerging technology-enabled companies. Portfolio includes Luxe, Pillow, and Beepi.