HyperSciences has raised more than $9 million for its hypersonic blaster technology using an unusual crowdfunding model, but now it’s working to attract millions more in investment the old-fashioned way.
The six-year-old venture in Spokane, Wash., founded by CEO Mark Russell and backed by Seattle startup veteran Mike McSherry, is in the midst of a funding round that’s offering up to $3.95 million in equity. More than $1.6 million of that equity has already been sold, coming on the heels of a $9.2 million equity-based crowdfunding campaign that made use of the SeedInvest and Crowdcube online platforms.
About 4,000 investors got in on the campaign, which ended last year and morphed into the current investment round, Russell said. “We had investors putting in from $2,000 to … you know, some invested over $100,000,” he told GeekWire. “We’d always built the company to be a starting point for a public company.”
Russell said total investment to date amounts to more than $13 million, including seed funding that came before the crowdfunding. As of last week’s filing with the Securities and Exchange Commission, $2.3 million of the current offering remained to be sold.
For Russell and his team, the true bottom line is to build a solid foundation for the next stage of HyperSciences’ efforts to harness the company’s ram accelerator technology, which came out of a collaboration with the University of Washington.