Richard Branson Invests in Hyperloop One

Billionaire Richard Branson’s Virgin Group has made an unspecified investment in startup Hyperloop One, one of several companies developing the high-speed pneumatic transportation concept.

As part of the deal, the Los Angeles-based startup plans to change its name to Virgin Hyperloop One. Branson also will join the company’s board of directors.

Hyperloop One (H1) says Virgin Group’s investment, which was part of an $85 million funding round that closed last month, did not make it the company’s largest shareholder. Since it was formed in 2014, H1 has raised $245 million from investors.

Virgin Group controls more than 400 companies worldwide. Key holdings include Virgin Atlantic Airways and the Virgin Galactic spacecraft.

Branson made the investment in H1 after visiting the company’s Nevada site, which this summer tested a 28-ft pod at speeds close to 200 mph. Calling the technology “groundbreaking,” Branson says hyperloop systems have the potential to transform transportation and “dramatically” cut travel times.

Virgin Hyperloop One has development projects underway in Canada, Finland, India, the Netherlands, the UAE and the U.S. The company envisions the technology being used for passenger and cargo transport.