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
Resource revival: Digital Inclusion Fund relaunches with initial grants focused on devices
Kansas Citians can’t upgrade skills or devices they don’t already have, said organizers of a newly relaunched Digital Inclusion Fund — emphasizing a need to attack the metro’s digital divide at the infrastructure level. The fund is set to award up to $250,000 to 501(c)(3) public charities (including schools and churches) or governmental entities across…
New deal with lightwell keeps WeWork in Kansas City after closing Corrigan Station space
A freshly negotiated lease agreement with the developer behind the lightwell building in downtown Kansas City means WeWork will continue its two-floor coworking and flexible office space operation in the heart of the city’s central business district. WeWork has officially completed its lease rationalization with the assumption of its lightwell location contract, the company said…
Meet the founder distilling greatness (and fusion flavors) into Kansas’ first Black-owned vodka brand
Startland News’ Startup Road Trip series explores innovative and uncommon ideas finding success in rural America and Midwestern startup hubs outside the Kansas City metro. WICHITA — Greatness isn’t given; it’s earned, said Troy Brooks. But it comes one step at a time, and not without its challenges, he said. The entrepreneur behind Kansas’ first Black-owned…
Startup gives fans real ownership in emerging athletes; investing in talent before they make it big
Just as investors can put their money in Google or Apple, Parker Graham wants sports enthusiasts to invest in the next Patrick Mahomes or Travis Kelce, he shared. Along with co-founder and fellow Oklahoma State football alum Yves Batoba, the Kansas City-based serial entrepreneur, Pipeline fellow, and founder of Finotta has now launched Vestible —…