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
Her fund targets investments for women of color; why this VC is fighting a lawsuit that would curb equity-focused funding
The fight for equity — especially among Black and brown entrepreneurs — isn’t easily won, said Ayana Parsons, likening the setback-laden struggle to a boxing match that seemingly never ends. “There are many rounds,” Parsons recently told a Kansas City crowd gathered at Burns & McDonnell’s campus for an event to honor diverse legacies. Parsons’…
West Coast health tech company bringing dozens of jobs to new River Market headquarters in KC
A West Coast health tech startup’s relocation to Kansas City is expected to give the company direct access to key clients in the region — as well as creating 35 high-paying jobs, representing more than $3 million in annual payroll, regional officials announced Thursday. Orange County, California-based Hart, Inc. plans to transition its operations to new…
$100K in federal funds take stage at Kansas City theater forced to relocate because of COVID
Challenges from the COVID-19 pandemic continue to impact the arts, said Evie Craig, whose organization was forced to relocate because of an unexpected revenue drop caused by the global health crisis. A recently announced $100,000 in American Rescue Plan grant funding from the Entertainment Industry Grant Program administered by the State of Missouri Department of…
KC Restaurant Week breaks down silos between diners, Kansas City’s chef-driven food scene
One of Johnson County’s favorite destination culinary experiences is back on the menu for Kansas City Restaurant Week, a 10-day showcase of innovative tastes from kitchens across the metro. “It helps the food industry,” said Laura Favela, executive chef at Silo Modern Farmhouse, said of the highly-anticipated, post-holidays event series. “The second goal is to…