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
Venues Made Simple vows to marry transparency with streamlined wedding planning tech
Jeff and Jessie Pavalone didn’t intend to plan their wedding during a pandemic. The Kansas City couple is introducing technology to the wedding industry with their new Airbnb-style venue management system, meant to simplify wedding planning for both couples and event spaces. Click here to explore their Digital Sandbox KC-backed startup, Venues Made Simple. The…
Family serves tender tradition at Kitty’s Cafe with KC’s most famous pork sandwich
Nestled along 31st Street between Kansas City’s Midtown and east side neighborhoods, Kitty’s Cafe has become a cherished symbol of timeless comfort recipes and enduring family heritage, said Jenna Soulivong. It’s word-of-mouth popularity spread largely from Kitty’s pork tenderloin sandwich — a menu item that that earned the restaurant recognition from The New York Times…
Headline-grabbing entrepreneurs join ScaleUP! KC on their way to ‘that next tier’
Twenty of Kansas City’s most promising young companies — including the KC Chamber’s “Emerging Business of the Year” — are among the latest cohort of ScaleUP! Kansas City, the metro’s longest running program for growth-minded entrepreneurs with scaling businesses. ScaleUP! Kansas City companies receive coaching, perspective and connections to scale, create new jobs, open new…
Kansas City startup among leading fintech finalists in NXTSTAGE competition
An AI-infused startup led by Kansas City serial founder Jannae Gammage is poised to compete against seven other finalists in this fall’s NXTSTAGE innovation showcase in Wichita. Foresight — a fintech platform that aims to open funding opportunities for underserved borrowers by assessing credit risk, fraud and biases — was selected as finalist for the…