Virgin Racing will operate with the lowest budget in Formula One, group chairman Richard Branson said today at the official unveiling of the new team and drivers Lucas Di Grassi and Timo Glock.

Under the slogan "A new team for a new era," Virgin aims to challenge on the newly expanded 13-team grid with a budget of just 40 million pounds (C$68.9 million).

Virgin, which has secured the title sponsorship of the Manor team, joins four other new outfits on the grid for the 2010 season–Lotus, USF1, Campos and Sauber.

"The new era is seeing the costs of entry come down–this team will be the lowest-budget team in Formula One," Branson said. "Money's not everything. They are determined to prove that via engineering prowess, great drivers and a great affinity with the public they can do well."

Financial details of Virgin's investment weren't disclosed and Branson said his group's main input would be providing use of a brand that is also attached to planes, trains and space travel.

"There are a billion people who watch Formula One and most of them are fanatical and the Virgin brand is maybe one of the top 20 brands in the world," Branson said. "Our involvement is the naming of the team and some money. We've lent a bit of money and then, on the back of the brand, the team is managing to get a lot of sponsors."

The 10 backers already signed up have funded the debut season. On Monday, the private equity arm of Britain's part state-owned Lloyds Banking Group announced it had bought a stake in the team reportedly worth about 10 million pounds (C$17 million).

In typical Virgin fashion, Branson arrived on stage at the chic Notting Hill venue with a dozen electric guitarists creating a sound akin to an F1 engine.