Port terminal operator DP World Group has led a $50m financing round for US-based transportation system developer Hyperloop One, the Wall Street Journal reported yesterday.
The commitment was made in the form of a convertible note which will convert to equity when Hyperloop One raises its next funding round, which is expected to take place in the first half of 2017.
Hyperloop One also announced it has appointed Brent Callinicos, formerly chief financial officer at ride hailing company Uber Technologies, as its chief financial advisor.
Established in 2013, Hyperloop One is developing a transportation system based on vacuum tubes that would enable trains to reach the speed of sound. The technology, first proposed by serial entrepreneur Elon Musk, would significantly reduce travel times compared to traditional trains.
Hyperloop One has now raised a total of $160m in capital. The latest financing will support the construction of a full-scale test for its transportation system in the desert outside of Las Vegas.
DP World Group’s investment follows a recent agreement between the two companies to potentially build a hyperloop system that would carry shipping containers from the port of Jebel Ali to an inland depot in Dubai.
GE Ventures, the investment unit of conglomerate General Electric, and railway operator SNCF previously took part in an $80m series B round in May 2016, alongside Sherpa Ventures, EightVC, ZhenFund, Caspian Venture, 137 Ventures, Khosla Ventures, Fast Digital and Western Technology Investment.
Hyperloop One initially raised raised $8.7m in series A capital in June 2015 before extending the round to $25.7m in November. The series A round was backed by Sherpa Ventures, EightVC, ZhenFund and Caspian Venture Partners.