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
End-of-life care platform wins top UMKC prize in young startup’s first-ever pitch competition
Serving as someone’s informal caregiver is a rewarding experience, but the pressure of being fully responsible for taking care of a loved one can take a toll on a person physically and mentally, acknowledged Nicole Staab and Rachel Blankenship. Through their startup, Rings of Care KC, they are providing support and resources for informal caregivers…
Brewkery closing its North KC kombucha taproom as ‘Lucky Elixir’ production heats up
Five years after opening its popular North Kansas City hot spot, the Brewkery — home of Lucky Elixir Kombucha — is moving and closing its taproom, co-founder Amy Goldman shared. With its lease about to end and rent increasing substantially, Goldman said, the move makes sense for the growing kombucha business. Although it’s bittersweet to…
Variety entertainer’s magic trick: Knowing whether his audience wants a clown (or Ruby in drag)
Dennis Porter’s success as a performer is scripted by the North Kansas City native’s talent at reading a room — adapting his jokes and wide variety of entertainment styles to fit the audience. If he’s doing it right, one of Porter’s characters brings a healthy grin to their happy faces, he said. “I am over-blessed…
Broadband internet is no longer a luxury; meet a group bringing access to KC’s most underserved children, families
Editor’s note: The following is the second in a series of stories focused on digital inclusion efforts in Kansas City, and is presented by Google Fiber. Those seeking change and equity in a rapidly evolving world of tech access must go directly to the people in need if they wish to truly eradicate the digital…