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
2023 Startups to Watch: Generation Esports schools players with pro gamer experience that breaks barriers
Editor’s note: Startland News selected 10 Kansas City scaling businesses to spotlight for its annual Startups to Watch list. Now in its eighth year, this feature recognizes founders and startups that editors believe will make some of the biggest news in the coming 12 months. The following is one of 2023’s companies. Click here to…
It began as a one-man DJ; now this ‘Platinum’ experience is landing KCI’s first big event at the new terminal
In-person events are back with vengeance, said Kris Nardini; and Platinum XP is positioned to plan experiences coming only from one’s wildest imagination. “Platinum XP is a single-source, full-service event planning agency. This means that we can quickly create proposals — that are very creative — but also on budget,” explained Nardini, the owner and…
‘Every business matters, every job matters’: How $69M in federal funds is already boosting KS entrepreneurs
Kansas will use a recent influx of federal funding to strengthen the state’s small business and venture capital ecosystems, according to project leaders of a new high-profile effort focusing on equitable access. The state was allocated $69 million earlier this year as part of the State Small Business Credit Initiative (SSBCI), a federal program that…
Scavenger Tech greenlights indoor-outdoor exploration with box that only unlocks by visiting GPS markers
An inventor’s GPS-driven scavenger hunt device provides needed adventure in the physical world — minimizing screen time while unlocking meaningful challenges and experiences, said Jeff VanDeusen. “I’ve always been someone who likes to go outside and enjoy nature, and I know that’s not always what engineers are known for,” said VanDeusen, creator of Scavenger Tech and…