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
Why underserved founders shouldn’t patiently ‘wait their turn’; Pipeline Pathfinder applications close Nov. 9
Editor’s note: Pipeline is a financial supporter of Startland News. Pipeline’s new Pathfinder program is accepting applications through Nov. 9. Click here to apply. Proof points long used to indicate a startup’s readiness to scale or raise capital favor white, male-led companies, said Melissa Vincent, stressing traditional markers like even a founder’s ability to dedicate…
Startup’s tech hits Hallmark shelves with video greeting cards; partnership ‘worth the wait’
Kansas City creative giant Hallmark’s newly announced line of video greeting cards is more than a one-of-a-kind product innovation — it’s the outcome of an extended startup partnership that was years in the making, Laura Steward said. “In 2015, we won a Launch KC grant,” recalled Steward, founder and CEO of Kearney, Missouri-based VideoFizz, describing the…
Why this KC couple will be lifting a celebratory ‘Dirty Sunrise’ when GEWKC drops anchor
The married duo behind Anchor Island Coffee already knew they’d have to defy expectations for their tropical-themed breakfast spot to succeed on Troost. And then came COVID. “Just two weeks after we opened in March 2020, we closed,” said Mike Hastings, who owns the shop with husband Armando Vasquez. “By May, we were able to…
New in KC: Hollywood veteran designs animation academy to make young artists more hirable
Editor’s note: New in KC is an ongoing profile series that highlights newly relocated members of the Kansas City startup community, their reasons for a change of scenery, and what they’ve found so far in KC. This series is sponsored by C2FO, a Leawood-based, global financial services company. Click here to read more New in KC profiles. A touch of Hollywood…