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
Boulevard, Vine Street hop to ‘inspire our city’ with a brew in honor of KC baseball icon Buck O’Neil
A new ale crafted in collaboration between one of Kansas City’s biggest brands and the city’s first Black-owned brewery is expected to commemorate “a true American treasure,” said Kemet Coleman — as well as send 100 percent of its proceeds to the Negro Leagues Baseball Museum. The Buck O’Neil Barrel-Aged Saison honors the late first…
Mid x Midwest aims to connect 50 VCs with 50 startups; why this new meetup is coming to KC
Traveling throughout the U.S. for business, Dan Kerr regularly comes across investors who have heard rumblings about the burgeoning Kansas City tech startup ecosystem, he said. But one problem persists: most of these potential funders have never stepped foot in Kansas City. “Really what got my gears turning is that I have a big network…
Just funded: Big ‘Pure Pitch’ winners swim with the sharks, earn thousands in cash on the spot
A winning afternoon at the Pure Pitch Rally is validation Dr. Brandy Archie’s healthtech accessibility app is providing connections people actually need, she said. “That’s the most important thing to me,” said Archie, founder of AskSAMIE. “The funds are going to a good cause, but this lets me know that this new idea that I…
They met in Hollywood, but this startup found its ‘fertile field’ of dreams (and community) in Kansas
Startland News’ Startup Road Trip series explores innovative and uncommon ideas finding success in rural America and Midwestern startup hubs outside the Kansas City metro. This series is possible thanks to the Ewing Marion Kauffman Foundation, which leads a collaborative, nationwide effort to identify and remove large and small barriers to new business creation. WICHITA,…