Invest in Virgin Hyperloop
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.
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.
This technology requires the implementation of enhanced security measures that can lead to the significant increase in the cost of Hyperloop project.
At the moment, the company has attracted $368 million in investments. In 2017, the company raised a $135 million round with post money valuation $820 million, and in the last round in May 2019, Virgin Hyperloop raised $172 million with post money valuation $323 million. At the moment, the company's shares are trading at a price of $ 2.1, which corresponds to a valuation of $616 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).
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.
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 companies. These funds make early-stage investments in private companies or acquire equity stakes from employees of such companies.
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.
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.
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.
3.5% of the share purchase amount. The fee is charged at confirmation of your investment bid.
0.5% of the share sell amount after the trade. The fee is charged at the investment exit.
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.
WE ARE A RELIABLE PARTNER
Our risk managers will support you throughout the entire transaction life.
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.
United Traders is experienced in minimizing risks but a future investor should be aware of all risk types:
- Illiquidity. There is a possibility that early exit from this investment will take more than 1 month.
- Asymmetric information. Management and current investors have access to more internal information about the company than other market participants.
- Time uncertainty. There is no information regarding next financing round or exit strategy timeframe (IPO or M&A).
- Share dilution. The issue of additional shares by a company may reduce the value of shares of existing investors.