Hyperloop Technologies, a startup formed by SpaceX alumni and well-known Silicon Valley executives, came out of stealth with $8.5 million on Wednesday to make the hyperloop reality, according to a report in Forbes.
The hyperloop, a transportation system that would send capsules large enough to contain people or goods through tubes at 760 miles per hour, originated with a paper published by SpaceX CEO Elon Musk and his team in 2013, but Musk said at the time that he didn’t have the time to pursue building it. He announced plans to build a test track last month.
That paper contained enough details for others to go after their own plans, and Hyperloop Technologies is the first to come up with actual money. On top of that $8.5 million, it plans to raise an $80 million funding round before the year is up, according to Forbes. Its team is led by former SpaceX engineer Brogan BamBrogan, and also includes XPRIZE founder Peter Diamandis, venture capitalist Shervin Pichevar, Palantir co-founder Joe Lonsdale, Yammer founder David Sacks and former White House deputy chief of staff Jim Messina.
Unlike Musk, the team initially sees the hyperloop carrying cargo instead of passengers. Forbes points out that Musk’s initial plans for a route from LA to San Francisco ran into major problems with rights of way and actually placing the line’s terminus in the heart of either city. With a cargo route, that wouldn’t be a problem.
This post was updated at 4:30 p.m. with the correct spelling of Shervin Pichevar and Joe Messina’s names.