Crowd investment in a groundbreaking transportation technology amidst increased market uncertainty13.03.2020
Hyper Poland, one of few innovative start-ups to watch out for in 2020, according to Railway Technology is currently raising its seed round on a leading London-based platform Seedrs.
As financial markets remain unstable after “a new “Black Monday” of March 9th when stocks plunged amid coronavirus concerns and oil prices crash”, the rationale for supporting development of a groundbreaking transportation technology via an equity crowdfunding is extremely strong.
1. Transportation system is a critical infrastructure and is counter-cyclical
Transportation infrastructure is a vital part of all economic and social ecosystems. People and businesses will always need it. Developing new ways of a more efficient use of existing railway infrastructure in a more automated and safer way is key for bringing global economy to the next level and revitalize it after the turmoil.
2. Hyper Poland’s product is currently in its Research and Development (R&D) phase and is not exposed to commercial risks
The current turmoil has limited-to-nill impact on Hyper Poland’s intrinsic value as its products are still in the development phase, with commercial phase scheduled for 2023 (for a pilot implementation).
3. Hyper Poland’s technology will decrease the dependence on oil
Transformation of existing railway lines into a super-fast, more frequent and more energy efficient mode of transport, propelled uniquely by electricity, will lead to lower use of cars, trucks and airplanes in transporting goods and people. This will make the world economy less dependent on oil prices and supply. It can also contribute to improving the global political, social and environmental situation.
4. Equity crowdfunding benefits from lower volatility of private equity asset class
Crowd investing in a private company, not listed on any stock exchange, makes future returns less dependent on the financial markets’ volatility.
5. Implementing necessary preventive measures to protect our staff and de-risk supplies
Hyper Poland has introduced necessary means and procedures to mitigate the risks related to coronavirus spreading in Poland. It is also closely monitoring potential impact on supply chains, which might influence the prototyping process, and it is taking all possible actions to assure diversified supplies.
6. Financial stability thanks to EU-funding and competitive cost structure
Most of the company’s fixed costs are covered with an EU grant from the National Center for Research and Development, which gives a great financial stability. Being in CEE, Hyper Poland also benefits from a lower cost base than its Wester European and American peers.
To summarize, Hyper Poland continues to be fully committed to building a great product, benefitting from a strong support from its partners including the National Center for Research and Development in Poland and Microsoft, and it strongly believes in its business’s resilience in the current turmoil.