Hyperdrive

Virgin Hyperloop One Rebuffs a Sale and Takes $50 Million Lifeline

  • Company is said to have rebuffed sale proposal from Caspian
  • Richard Branson to be named chairman of transport startup

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Virgin Hyperloop One, a beleaguered startup trying to develop a futuristic, tube-based transportation system, got a lifeline in the form of $50 million from two foreign backers.

The board approved the deal last week as the company was running low on cash and attempting to navigate a scandal involving co-founder Shervin Pishevar, who was accused by multiple women of sexual misconduct outside the company, said a person familiar with the matter. Pishevar denied all the allegations, took a leave of absence from Virgin Hyperloop One this month and stepped down from his venture capital firm.