Engine test Hyperloop transport system on the ground in the Nevada desert. May 11, 2016
Venture Fund Caspian Venture Capital (CVC), project Manager of the owner of the “Amount” Ziyavudin Magomedov, has completed a third round of investment in a project to create a high-speed Hyperloop vacuum train One, told RBC representative of “Sum”. Together with other partners (they are not disclosed) in a startup, coined by billionaire Elon Musk, the new phase was additionally invested $50 million.
The Mask for realization of the project were not taken, laying out in open access the calculations to create the transport system, consisting of steel tubes, inside which at a speed of 1200 km/h would move the train in the form of a sealed capsule on the aerodynamic cushion. To develop a controversial transport project is undertaken, in particular, the company Hyperloop One (the main investor is venture capitalist, an American of Iranian origin shervin Pishevar).
Quarrels in the “Loop”
In June 2016 the company Hyperloop One along with three other employees left the co-founder and CTO Brogan Bambergen. He has since filed a lawsuit against the other founder of the company, the Sherwin Pishevar, and three employees. The charges included breach of fiduciary duties (loyalty, honesty, diligence), employment law, wrongful dismissal and breach of contract and defamation, infliction of emotional turmoil and violence. In particular, Bamberger argued that shervin Pishevar assigned 90% of the common stock Hyperloop One, having more control than assumed in the original agreement. In addition, the claim he pointed out that one of the managers of the company left at his workplace the loop from the rope after he voiced doubts in joining the project of Russian investors.
Fund Ziyavudin Magomedov, for the first time acted as a co-investor of the project in the amount of $11.1 million in February 2015. In may 2016 CVC with the same investors have invested in the startup another $80 million.
The owner of the Summa group Ziyavudin Magomedov
Following the transaction, Ziyavudin Magomedov himself will join the Board of Directors of the Hyperloop One (the official appointment of the new composition will be held at the next meeting).
Major Russian businessmen are not often included in the boards of Directors of foreign startups, while investing in them actively — for example, Alisher Usmanov (Uber, Alibaba, JD, Xiaomi, Facebook), Michael Friedman (Uber), Yuri Milner (Alibaba, JD, Xiaomi). However, none of them of interest to personal involvement in managing projects are not shown. The exception is the co-founder of “Yandex” Arkady Volozh (in 2015, has joined the Board of Directors of the Israeli startup NeuroSteer, analysis of brain activity).
At the same time in the West, the common practice of entering the boards of Directors of startups, representatives of major infraststructure. For example, in 2014, the aggregator apps and services Product Hunt has raised $6.1 million from the Lead investor is a venture capital Fund Andreessen Horowitz: in terms of the transaction partner of the Fund, a former Microsoft Manager and “father of Windows” Steven Sinofsky joined the Board of Directors Product Hunt.
Participation in the Board of Directors of the Hyperloop allows One “Amount” “to coordinate and monitor policy Hyperloop project implementation in other countries,” said RBC in the press service of the group. Currently, the “Sum” builds in Primorye transport corridor “the Big port “Zarubino”, in which, said the representative of the company, it is possible to run the highway Hyperloop. The start up cost is estimated at us $1.5–2.1 billion co-Investors expect that Russia will be one of the first countries that will run the capsule-train Hyperloop.
Among other possible countries to launch pilot projects in a press-service “the Amount” called the United Arab Emirates. Hyperloop One has also entered into an agreement with the Slovakian government on construction of the route in Central Europe. Earlier, Magomedov in a Financial Times interview talked about plans for 15 years to connect with a train Moscow and London. In September at the Eastern economic forum the businessman also said that he believes the Hyperloop is a promising technology for passenger transportation on the route Moscow — Saint Petersburg and Moscow — Sochi.
In the hi-tech even in the early stages of projects joining the Board of Directors of the investment structure — it is common practice, says Director of the Russian branch of the Capital Strategy Advisor Igor Surkis. “This ensures, on the one hand, additional control over the enterprise, but, most importantly, provides a set of significant advantages in the form of transfer of experience of big business. Investors usually bring not only money but and experience worth millions. It’s kind of a non-monetary, but a critical investment,” he says.
Waiting for a train
On the idea of Elon musk (one of his projects, Tesla, SpaceX and SolarCity), the Hyperloop train to cover the distance from San Francisco to Los Angeles (about 600 km) in 30 minutes. In the project “the Sums” in Primorye, the Hyperloop will be used for freight traffic on the route Hunchun — Zarubino. In Hunchun, is the largest in Southeast China logistics terminal, from where cargo is distributed to other regions of China, Japan, USA, Korea, and South Korea. There are calculations that the vacuum train on the fifth year of operation able to be transported through Russian territory every year to 19 million tonnes or 1.3 million TEU (equivalent to a standard 20-foot container).
The Hyperloop train One had not yet submitted. In may have been tested only of the propulsion system, and full system testing is scheduled for the second quarter of 2017.
With the Sultan for the company
Ziyavudin Magomedov became the only representative of the investment structure, which was included in the Board of Directors Hyperloop One. With him the Council includes the CEO of port operator DP World Sultan Ahmed bin Sulayem.
According to Raiffeisenbank analyst Sergei Libin, joining the Board of Directors for Hyperloop Ziyavudin Magomedov is the “image project”. “It is unlikely that such a startup is a business. Such investments don’t always pay off, and if you earn, then not soon”, — said Libin.