![\"hyperloop](\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2015\/10\/hyperloop-pic-1-300x168.png\")
<\/p>\nIn August of 2013, Elon Musk (CEO of Tesla and SpaceX) released a whitepaper detailing the concept of Hyperloop Transportation- a futuristic transportation innovation expected to change the way we live, travel, and work.\u00a0\u00a0 Although much of the technology for the Hyperloop is yet to be developed, it has been described by Musk as \u201ca cross between the Concorde, a railgun, and an air hockey table,\u201d and by others as \u201caerodynamic pods that shoot through low-pressure tubes at speeds much faster than a Boeing 777.\u201d In early 2015, Musk reemerged to help advance the Hyperloop, which is now being ushered through time by two CA startups and the crowd.<\/p>\n
<\/p>\n
The first, Hyperloop Technologies, is a fairly traditional startup that has raised funds ($8.5 million to date, projected $80mil this year) and hired its own employees to work on the Hyperloop project. \u00a0They are both well-backed financially and with personnel (Hyperloop Technologies holds many key engineers and deal makers close- including SpaceX engineers, ex-White House go-getters, and educational non-profit pioneers). \u00a0The second, called Hyperloop Transportation Technologies (HTT), was started by Dirk Ahlborn in 2013.\u00a0\u00a0 Just prior to HTT, Ahlborn launched a crowdfunding site called JumpStartFund.\u00a0\u00a0 HTT used JumpSTartFund to crowdsource and crowdfund its idea for the Hyperloop project, and now has over 170 mostly parttime engineers and designers.\u00a0\u00a0 The global HTT team works for equity, and reportedly many also work part time for other big name companies, including Boeing and NASA. \u00a0 In the past year,\u00a0the team has crowdstormed<\/em><\/strong> a 76-page document that further outlines its own plan for the Hyperloop system. \u00a0 Musk’s original paper was the starting\u00a0point for the crowd to expand on the actual technological, logistical, safety, and cost details.<\/p>\n <\/p>\n While HTT is formally crowdsourced through JumpStartFund, they also source contributions informally across other platforms.\u00a0\u00a0 UCLA\u2019s design and Architecture program is collaborating\u00a0with HTT on optimizing routes, stations, and design.\u00a0\u00a0 They also appear to be cooperating with Hyperloop Technologies.<\/p>\n <\/p>\n Perhaps HTT\u2019s most noteworthy \u201cpartner\u201d is Elon Musk.\u00a0\u00a0 Musk\u2019s name alone gives legitimacy to the efforts.\u00a0\u00a0 Per their website, neither SpaceX nor Musk are officially affiliated with any hyperloop companies. They are, however, \u201cinterested in helping to accelerate development of a functional Hyperloop prototype.\u201d SpaceX has already announced (but is yet to break ground on) a 1+ mile test track, ETA 2016.\u00a0\u00a0 By footing the bill for the track, this will greatly reduce the cost of prototyping for engineers and designers hoping to enter this industry at such an early stage.\u00a0\u00a0 SpaceX (and Musk) have funds, motivation, and the market position to build this track, while others do not.\u00a0\u00a0 Also earlier this year, SpaceX announced an open competition for designing and building pods, encouraging university and independent engineering teams to participate at all levels.\u00a0\u00a0 This competition is a different form of crowd sourcing- all knowledge gained from the competition will become \u201copen-sourced free-ware to the public and even potential competitors.\u201d This is an ambitious project, and hopefully the Test Track will be finished in time for the contest\u2019s published \u201ccompetition weekend\u201d in June 2016. \u00a0 \u00a0I also fear that the crowd might lose interest should the track (and therefore the project) be delayed.\u00a0\u00a0 Without a functional and funded track, there is little hope for a proven prototype, despite how many qualified people log onto JumpStartFund to offer their ideas. As of today, there are 3100 followers of the project, and in the last quarter people submitted ideas on everything including pylon materials, economic feasibility, and \u201cmodern\u201d branding. \u00a0 It\u2019s also unclear how much money is driving participation. HTT\u2019s website directs you to JumpStartFund, and they state that they \u201cask for 10hour\/week minimum commitment in exchange for stock options. If the project does not progress fast enough, or loses funding, will the best and brightest lose interest? How will that affect the technology?<\/p>\n <\/p>\n To date, they are still in the earliest stages of value creation.\u00a0\u00a0 Starting in 2013 with just an idea, interest has mounted.\u00a0\u00a0 As interested and capable engineers, businesswomen, and funders join the party, they will continue to create value by building robust technology, an \u201caffordable\u201d infrastructure, and a business model to match.\u00a0\u00a0 By reaching to the crowd- for crowdstorming in early stages, crowdsourcing in middle stages, and crowdfunding in all stages, HTT, SpaceX, and friends can bring a seemingly unreachable technology to the masses.\u00a0\u00a0 Unfortunately, there has been no value capture to date.\u00a0\u00a0 This part of the value chain will only happen in the future, once the technology is actually developed and tested.\u00a0\u00a0 HTT has publicly stated that they believe that the first branch of the hyperloop, connecting 2 of CA\u2019s biggest cities, will be available in the next decade for a whopping $6-17 billion.\u00a0\u00a0 How much value will they be able to capture? On a dollar basis, it is far too early to predict, and neither company has released a projection.\u00a0\u00a0 On a knowledge basis, JumpStartFund and the SpaceX\u2019s Hyperloop Pod Competition will capture mountains of groundbreaking innovations, in the hopes of advancing the entire industry.<\/p>\n <\/p>\n Sources:<\/p>\n Hyperloop Transportation Technologies Website<\/a><\/p>\n Fortune.com: Elon Musk\/ SpaceX Test Track<\/a><\/p>\n Gizmag.com: Elon Musk’s Hyperloop- How it Works<\/a><\/p>\n JumpStartFund Hyperloop Project Website<\/a><\/p>\n