Hyperloop One, the company born of Elon Musk’s vision of blazing fast tube transportation, landed $85 million in new funding last week.
Investors now value the company at more than $700 million. Hyperloop One has raised a total of $245 million to develop tunnel-based transportation. Caspian VC Partners as a part of Summa Group and OurCrowd.com joined existing investors on this round.
“We are so fortunate that our new and existing investors share our vision of making Hyperloop the world’s first new mode of transportation in over a century. We initially targeted $50 million and ended up raising $85 million instead,” said Shervin Pishevar, Executive Chairman and co-founder of Hyperloop One, in a press release.
Pishevar and former SpaceX engineer Brogan BamBrogan founded Hyperloop One in 2014 to execute Musk’s idea of moving people quickly from place to place through tubes. Musk introduced the notion based on SpaceX research in a 2013 white paper. Initially, the billionaire entrepreneur said he was too busy with his other companies to develop the hyperloop idea on his own.
Since then, Hyperloop One has tested the idea and made plans to build it. But the company isn’t the only game in town.
BamBrogan, ousted by Hyperloop One in 2016, launched Arrivo this year to compete with his former company.
Another startup, Hyperloop Transportation Technologies, began construction of its own people-moving pod earlier this year. That company plans to reveal its work in 2018.
And Musk himself tweeted earlier this year about his plan to build a hyperloop between New York and Washington, D.C. Musk owns a trademark on the term “Hyperloop,” which could cause trouble for competing startups, Bloomberg Businessweek reported this year.
Despite the competition, Pishevar remains optimistic. “We’ve proven that our technology works and that Hyperloop One is the only company in the world that has built an operational Hyperloop system. As we move towards the commercialization of our technology, we’ll continue to work with governments and embrace public-private partnerships to reimagine transportation as we know it,” he said.