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
Mayor appoints city’s first Small Business Task Force as investment in KC entrepreneurs
Small businesses have the potential to thrive in Kansas City in ways unlike other metros across the country, said Christine Lau, highlighting how the city’s unique spirit will play a role in a newly created Small Business Task Force for KCMO. “We have a grit and tenacity that I haven’t seen anywhere else,” said Lau,…
Taylor Swift vs NFL Draft: Who scored the most touchdowns for KC in this epic economic showdown
Editor’s note: The following economic analysis was provided by the Economic Development Corporation of Kansas City, Missouri (EDCKC). The opinions expressed in this commentary are the author’s alone. Kansas City, Missouri, has recently been the epicenter of two gargantuan events: Taylor Swift’s Eras concerts and the NFL Draft. Both events have left significant economic imprints…
Industrial tech leaders fuel ‘fire of innovation’ with startup mentality, partnerships
Getting foundational industries — like construction, manufacturing, and energy — to innovate isn’t easy, shared corporate leaders from three regional heavy hitters. “Everybody loves change,” joked Dustin Burns, vice president of innovation at McCownGordon. “They’re just asking for more change to be dumped on them all the time.” “In my experience, a lot of clients…
In their threads era: KC retailers answer demand for Swift-Kelce clothing
Editor’s note: This story was originally published by Missouri Business Alert, a member of the KC Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, Kansas City PBS/Flatland, and The Kansas City Beacon. Click here to read the original story. Sunday’s game between the Kansas City Chiefs and Chicago Bears brought together two powerful…