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
Where’s the beef? Coming soon to this famed Kansas fried chicken spot? A sixth-generation cattle family’s prize-winning steaks
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. This…
Veteran podcast creator finds inspiration at the crossroads of hip-hop, health; now launching digital magazine
Jessica Dalby might be the name and face of her business, but her brands are all about lifting up others, she said. “My mission statement is: everyone can shine and succeed together,” detailed the founder of Jessica Dalby Brand Media. Under the company’s umbrella are four brands: “Diggie A-2: The Progression of Hip-Hop” video/audio podcast,…
Pure Pitch Rally set for October return at Burns & Mac HQ; startups competing for $1M+ in cash, prizes
A new backer — one of Kansas City’s biggest corporate names — will help amplify the laser-focused mission of the Pure Pitch Rally, said Karen Fenaroli, announcing open applications for the 2022 startup competition. Burns & McDonnell, an industry leader in construction engineering, joins the Pure Pitch Rally as a major sponsor of the annual…
Five KC-area projects get green light for $48.2M in federal funds to bolster supply chain, support racial equity, economic growth
A federal push to make U.S. transportation systems safer, as well as more accessible, affordable, and sustainable will boost a handful of Kansas City modernization projects — including two that would reconnect east-west communities within the metro, the nation’s top transportation official announced Thursday. Nearly $48.2 million in funding is slated for local planning and capital…