When asked whether he expects to go into space or ride a hyperloop first, Branson said: "I would be very disappointed if I haven't been into space within six months or so".
A Hyperloop uses a pod to carry passengers or cargo through a low-pressure tube.
Its tracks use magnetic levitation and the pod glides at airline speeds for long distances.
Hyperloop One, which has previously raised more than $160 million, is working to develop a pod system that can travel at up to 750 miles per hour with better safety than passenger jets, and lower build and maintenance costs than high-speed trains.
Electric: Testing under way near Las Vegas.
In a post on his website, Branson said he aimed to turn it into a "global passenger service" which could complete the 332-mile journey between the Scottish and United Kingdom capitals, via Manchester, in under an hour.
'From our airlines to our trains to our spaceline, we have always been passionate about innovation in transport too, especially the development of technology that could transform people's lives.
Financial details weren't disclosed although one would assume it's significant considering Hyperloop One is changing its name to Virgin Hyperloop One. "This is just the latest example", Branson said in a statement.
The Virgin founder also noted his commitment to ensuring Hyperloop One remains all-electric, and "is a responsible and sustainable form of transport". Tests of Hyperloop One in the desert of Nevada have resulted in speeds of nearly 200mph in recent months. And as Branson told CNBC, a loop is only likely to break ground in two to four years if "governments move quickly", a thing governments are rarely known to do.
Branson writes that he will be working with Hyperloop One's co-founders, executive chairman Shervin Pishevar and president of engineering Josh Giegel.