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
Showcase showdown: KC Chamber rallies ‘Mr. K competitors, but small biz owners say it feels more like family
The husband-wife duo behind Kansas City-based Shark OFF appreciate the local entrepreneurial ecosystem so much that they actually list it as one of their startup’s co-founders, Geoff Geist shared. “We would not exist if it weren’t for this community,” said Geist, the co-founder and COO of Shark OFF, which offers shark repellent bracelets that are…
Meet the winners of KC’s first grants for micro-businesses; $55K awarded to women of color
A newly launched collaboration between entrepreneur support efforts announced Thursday its first batch of grant winners — positioning four Kansas City micro-businesses for greater success amid a near-universally challenging start for the year. “The first quarter of the year is hard for most businesses, and extremely hard for small businesses. This year was no different…
These ‘Urban Heroes’ are helping evolve downtown KC; here’s why they’re on the right path
In a prelude to today’s celebration of downtown Kansas City’s evolution and momentum, four “urban heroes” were honored Thursday for their passionate work to make downtown a more vibrant place to live, work, and play, organizers said. Winners of the “Urban Hero Awards” ranged from honorees on the east side to the Crossroads and the…
Honey bunches of joy: How this Raytown bee farm landed its blooming business model
Editor’s note: This story was originally published by Kansas City PBS/Flatland, a member of the Kansas City Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, The Kansas City Beacon, and Missouri Business Alert. Click here to read the original story. Erik and Rachael Messner’s home on an acre in south Kansas City gave…