Shawnee native sells another startup for over $1B with GM deal
March 21, 2016 | Bobby Burch
General Motors is hoping to become the leader of self-driving car technology with the gargantuan acquisition of Cruise Automation, whose founder has a local tie.
GM announced on March 11 that it purchased Cruise for more than $1 billion in a move that aims to accelerate the development of GM’s autonomous vehicle tech. Cruise CEO Kyle Vogt is a 2004 graduate of Shawnee Mission Northwest High School.
“GM’s commitment to autonomous vehicles is inspiring, deliberate and completely in line with our vision to make transportation safer and more accessible,” Vogt said in a release. “We are excited to be partnering with GM and believe this is a ground-breaking and necessary step toward rapidly commercializing autonomous vehicle technology.”
Cruise created an aftermarket kit that allows users to convert certain types of cars into autonomous vehicles for highway driving. Fortune Magazine reports that about 40 people work for Cruise. The company raised more than $18 million in venture capital funding, and its investors include Y Combinator, Spark Capital, Maven Ventures and Founder Collective.
As part of the deal, Cruise will operate as an independent unit within GM’s recently-formed autonomous vehicle team. The company will continue to be based in San Francisco. GM already works with ride-sharing company Lyft and formed a personal mobility brand for car-sharing fleets named Maven.
A graduate of the Massachusetts Institute of Technology, Vogt now has two billion-dollar deals under his belt. In 2006, he helped build and launch Twitch, which is self-described “the ESPN for gaming.” In 2013, Amazon acquired the firm for $1.1 billion. He also was a co-founder of SocialCam, a mobile app for video sharing. In 2011, he sold the firm to Autodesk for $60 million.
To learn more about Cruise’s technology, check out the video below.
Featured Business
2016 Startups to Watch
stats here
Related Posts on Startland News
Don’t sleep on Kansas City: How this Killa collab draws out KC’s ‘Little Villains’ at just the right season
Drafted from creativity in the Crossroads, a hand-sketched character inspired by Kansas City’s rising national profile (and the familiar personalities behind it) is now finding fans on and off the field … well, lawn. “The Killa” — a football player repping No. 87 — has made the leap from team yard decorations to a starring…
Disney preservationists launch $4M campaign, add key collaborators to save iconic animator’s KC studio
The legacy of Walt Disney’s foundational time in Kansas City — and the structure the famed animator left behind on Troost Avenue — must be preserved frame by frame, said supporters of an ambitious redevelopment project at the former Laugh-O-gram Studios. A newly launched “Dreams Start Here” campaign aims to secure a future for the historic…
His family-fried waffle spot is open for cheat day (but not breakfast); How Dennis Alazzeh played chicken with restaurant trends and won
Kansas City-battered Chick-In Waffle is expanding into Johnson County; its owner — a son from within Jerusalem Cafe’s founding family — gives the classic American chicken-and-waffle combo a global twist with flavors like Asian chili, tikka masala, and queso After slogging away in his father’s restaurants while in school, Dennis Alazzeh swore off the industry…
Theater’s $8.7M rehab set to bring Black Movie Hall of Fame, Black Rep to KC’s ‘cultural corridor’
A century after the storied structure’s construction, an $8.7 million redevelopment project at the Boone Theater in Kansas City’s historic 18th & Vine Jazz District aims to recapture the space’s potential as a cultural hub for the community — and a bridge to the city’s history. The long-awaited project at 1701 E. 18th St. is…