Virgin Hyperloop One raises $50 million from Russian and Dubai investors, names Branson chair

Key Points
  • Virgin Hyperloop One raises $50 million more from Russia- and Dubai-based investors.
  • Richard Branson will become chairman.
Virgin Hyperloop One raises $50 million and names Richard Branson chair

Virgin Hyperloop One just raised $50 million more in its quest to build a high-speed transit system after being "very close" to running out of money, according a source familiar with the situation.

There is likely to be some "organizational restructuring" following the funding round, the source told CNBC.

The new investment reported Monday came from Russia's Caspian Venture Capital and DP World, a large port operator in Dubai. Russia and Middle East are two of the most likely places for the first commercial application of Virgin Hyperloop One technology, the source told CNBC.

The Los Angeles-based start-up also named investor Richard Branson chairman. Branson's company has invested a unknown sum in the company, which renamed itself Virgin Hyperloop One in October.

Virgin Hyperloop One did not immediately respond to CNBC's request for comment.

The news of the new funding round and Branson's promotion was first reported by Axios.

The company was founded in 2014 to build a working model of a tube-based transportation system developed by Tesla and SpaceX CEO Elon Musk. Several companies and other institutions have since made plans to develop technologies for hyperloop systems.