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
Pushing without force: Founder credits accelerator’s collaborative ‘in the trenches’ guidance for overseas scaling success
Editor’s note: This article is sponsored by the NMotion startup accelerator, but was independently produced by Startland News. The powerhouse mix of global and localized support David Biga received from the NMotion Growth Accelerator was well worth the program’s required exchange of equity, the proptech startup founder detailed. Particle Space — one of Startland News’…
Coming to the Plaza: Food hall to put ‘chefs out front’ from breakfast to late-night crowd
Just months after expanding to Downtown Kansas City, the Strang Chef Collectives’ next location for a chef-driven food hall will be tailored to fit its new home on the Country Club Plaza, said Shawn Craft. The hall’s four new food and beverage concepts — slated to open in late May or early June — will…
PMI Rate Pro pivots to tech solutions firm as pricing tool integrates with mortgage software solution
The mortgage industry is lagging behind in the current world of technology, Nomi Smith said; but PMI Rate Pro is innovating to become a one-stop shop for private mortgage insurance (PMI). “We began as a quoting service, so we developed an API (application programming interface) supporting another API. But we quickly realized that there needed…
Popular airport vending machines stocked with local maker goods won’t make the move to new terminal
When Kansas City’s new terminal opens Feb. 28 — booked full of local brands — a retail startup that weathered nearly a decade (and a pandemic that grounded much of the nation’s air travel) at the airport won’t be among those selling KC goods at the new shopping destination, its founders announced this week. SouveNEAR…