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    Virgin Hyperloop

    Transport of the future
    OTC
    High risk

    Invest in Virgin Hyperloop

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    Investment Idea Details
    About the company

    Hyperloop is a steel tube on top of pylons; vacuum inside the tube reduces drag. The magnetic levitation technology elevating objects using magnetic field only and nearly-zero-friction allow a pod carrying passengers and freight to travel at a speed of up to 1,220 km/h.

    A journey from Paris to Madrid would take 1 hour and 16 minutes, while Moscow to St. Petersburg trip would take 48 minutes.

    Market opportunity

    We estimate the total addressable market for Hyperloop to be over $1 trillion.

    In January 2018, an app for passengers was showcased by Virgin Hyperloop One in partnership with HERE Technologies: using the app passengers will be able to plan, book, and pay for hyperloop trips and any other modes of transportation.
    The hyperloop technology can transport passengers as well as cargo. Notably, transporting freight may be much easier owing to lower security requirements.

    Risks

    This technology requires the implementation of enhanced security measures that can lead to the significant increase in the cost of Hyperloop project.

    The vacuum train technology has a number of unresolved problems - constant maintenance of vacuum throughout the entire route and thermal expansion (deformation of steel frames under the influence of atmospheric temperature).

    Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.

    Financials

    At this moment, the company has attracted $300 million. Last round valuation price in September 2018 was $ 870 million.

    The company's largest shareholder is Richard Branson, a British businessman and founder of the Virgin Group. Other investors include Khosla Ventures (90 successful exits, including Square, Okta, Nutanix); General Electric (GE) ventures (26 successful exits).

    How Venture Investments Work
    1. Searching for Companies

    United Traders analysts are in continuous search for OTC offers studying financial reporting, companies’ businesses, their future plans, analyzing them as potential acquisition targets or estimating prospective multifold capitalization increase as well as considering risks that may hinder business growth. The best ideas are offered to our investors.

    Publication
    14 Sep
    Minimum Amount
    15 000 $
    2. Buying shares

    As part of our service for purchasing shares on the OTC market, for its traders and investors United Traders buys units in funds that own equity stakes in private companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.

    Shares Outstanding
    Limited
    3. Public Offering

    United Traders will have shares at its disposal after the IPO. The shares can be sold after the established 6-month Lock-up period. Alternatively, the shares can be hedged for the above period. Prior to the company going public United Traders look for exit options in the OTC market. If we find a great offer, we sell the shares.

    Public Offering Date
    Pending
    Estimated Gains
    + 200 %
    4. Taking profit

    After the Lock-up period is over, the investment position will be automatically closed, and generated profits are credited to your account less the applicable UT fees. We offer an opportunity for investors with over $100,000 invested in a specific idea to search for a counterpart in the OTC market individually and to take profits before the company goes public and thereby exiting the trade prior to the Lock-up period expiration.

    Exit
    ̴ 2020
    Early Exit

    Although it is prohibited to sell shares within the Lock-Up period, our traders find ways to take profits for our investors using various financial instruments: forwards, options, short selling trades, etc.

    For an investor the above means that the investment may be exited after paying a portion of its value, usually around 15% which is caused by highly-priced instruments used to close the position. To do so, you should press the respective button in your members area as soon as it becomes active.

    The exiting process is similar to making a new investment. You submit a request, we execute it within 1 business day, and your investment is closed at the current exchange price.

    Fees

    ENTRY FEE

    3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.

    EXIT FEE

    0.5% of the share sell amount after the trade. The fee is charged at the investment exit.

    SUCCESS FEE

    20% of the profit gain. The fee is charged only if the trade is profitable at the time of exiting.

    EARLY EXIT FEE

    Usually a 15% fee is charged subject to the actual situation at the exchange. The fee is calculated individually for each investment.

    What Are the Benefits of Investing with United Traders?

    WE ARE A RELIABLE PARTNER

    Our risk managers will support you throughout the entire transaction life. You can also contact us by phone: +7 495 646-15-57 or 8 800 333-66-81, or visit our office for a detailed discussion.

    HIGH PROFITABILITY

    Venture investing is very risky as they involve new or growing companies, and multifold increase in capitalization is expected. We select companies that already demonstrate strong financials and plan to go public soon. This approach allows limiting hyper-risks related to insolvency of new companies and substantially increasing profits as compared to investors who buy shares in a pre-IPO subscription.

    LOW ENTRY THRESHOLD

    To qualify for a pre-IPO subscription, one would need millions of dollars. We gathered a pool of traders and investors allowing everyone interested to join similar transactions with as much as $15,000.

    Invest in Virgin Hyperloop

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