Hyperloop One to have another funding round in early 2017

According to a feasibility study, if Hyperloop One were to connect Stockholm with Helsinki, the trip would take roughly 30 minutes. Using current transport systems you will have to take a ferry overnight through the Baltic.

Hyperloop One’s founders have disclosed that they could once again raise fresh capital next year, in order to develop the futuristic high-speed transport system.

The system envisaged by the company wants to use magnets to levitate pods inside massive airless tubes which can propel up and down at speeds of up to 750 mph (1,100 kmph). The pods can transport cargo as well as people.

The founders of Hyperloop One have now signed feasibility studies with the Finnish and Dutch governments.

Expanding on its participation with governments, earlier this week, Hyperloop One had said, it has agreed to jointly evaluate its option of installing its futuristic transport system in Dubai.

IN early 2017, the company will carry out its first full-scale test, which will demonstrate the concept’s viability, in Nevada.

As yet, Hyperloop One has raised $160 million, including $50 million from DP World, a Dubai port operator. It will use the funds to finance its growth.

“Basically, we are looking to do a big raise next year,” said Josh Giegel, co-founder and head of engineering at Hyperloop One. “If we can have a customer on the hook, it will be all that much easier.”

Describing next year’s funding round, Giegel said, it would “be something in the hundreds of millions, but not high hundreds of millions”.

The idea behind Hyperloop One originated in 2013, in a paper written by Elon Musk, Tesla’s CEO. Skeptics of the system, will be left with their mouth open if Hyperloop can make what is in the realm of science fiction, become science fact.

Judging by the growing number of agreements on feasibility studies the company has undertaken with a number of countries, there is a growing sense of optimism. In Giegel’s mind, there is no doubt as to the outcome of the test: it will work.

“There is no doubt about it working at this point, it’s just that how quickly can you go through the regulatory process, the customer process and to basically get the funding situation in place?” said Giegel.

In the long run, what could cost significant money is to build a network of tubes, either underground or over-ground.

However, according to Shervin Pishevar, a co-founder and executive chairman of Hyperloop One, once governments understand the huge savings that this system will bring, it is likely that they will embrace the technology.

“Once governments see what the potential is, they will basically accelerate the regulatory process,” said Pishevar. As for regulatory hurdles, he said, it may not be all that cumbersome since it will be essentially starting from a black slate.

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