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
What a catch: Kansas City fandom creates custom appeal for taco-loving cartoonist vibe
Drawing from Kansas City’s spotlight moments — whether trendy and new or iconic and timeless — W. Dave Keith balances a quirky aesthetic with a practical focus on what will actually sell. “I’ve slowly learned that if I want to make money off this business, I need to make stuff that people want to buy,”…
Power through purpose: How a winding journey led this eco devo steward to deep-rooted impact
Editor’s note: The following story was written and first published by the Economic Development Corporation of Kansas City, Missouri (EDCKC). Click here to read the original story. Going behind the scenes of CCED with the people who make it happen Some people are drawn to city-building because of the bricks and steel, the architecture, the skyline, the grandeur…
Missouri’s weapon in the AI race with China: KC tech companies, says GOP lawmaker
As artificial intelligence reshapes the way Kansas City works, civic and elected leaders want to ensure small businesses and the region’s tech community have seats at the table. Federal regulation could help, said Eric Schmitt. “For me, [it’s about] making sure that the big tech companies don’t block out a lot of the innovators, say…
ECJC carves out early-stage startup track for its popular mentoring program: GMS-Tech
After a decade boosting Kansas City founders, Growth Mentoring Service at ECJC is expanding to target assistance specifically toward the region’s early-stage technology startups — using the same proven approach: high-impact, team-based mentoring from top-tier business leaders who’ve already been through it. “We have all these amazing volunteer mentors with deep expertise as either technologists…