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
Five lessons from investing $5 million into 50 startups in five years
Editor’s note: The perspectives expressed in this commentary are the author’s alone. Scott Henderson is managing principal for Nebraska-based NMotion, general partner for gener8tor Great Plains Fund, and a board member for Startland, the parent organization of Startland News. This piece was originally published by Silicon Prairie News. Seems just like yesterday I was returning…
‘Belonging is not a luxury’: KC Chamber winner links DEIB commitment to hope, dignity
Diversity, equity, inclusion and belonging aren’t just words in reStart Inc.’s strategic plan, CEO Stephanie Boyer said, noting they are the foundation of how the nonprofit’s leaders show up, serve, and lead. “We believe that belonging is not a luxury,” she continued. “It’s a right, and it’s a right that we’re committed to protecting and…
‘What’s stopping me?’ Bonk takes a loud swing with Crossroads streetwear store, Midwest grit
It began with Mason Barry’s search for the perfect black and white checkered sweatsuit. When nothing fit his expectations for design or quality, the Kansas City creative launched his own streetwear brand — featuring bold apparel that already is gaining a foothold in trendy fashion hubs from Brooklyn to Portland. Bonk Supply — a brand…
‘Stablecoin summer’: Crypto community greets GENIUS Act with optimism, caution
Editor’s note: This story was originally published by Missouri Business Alert, a member of the Kansas City Media Collective, which also includes Startland News, KCUR 89.3, American Public Square, Kansas City PBS/Flatland, and The Kansas City Beacon. Click here to read the original story. A new federal cryptocurrency law has sparked a range of reactions across Missouri,…