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 a globally-trained Spanish chef is building his new homebase from City Market
It’s all about the pan for Carlos Saura, a Spanish chef whose new paella and tapas spot in Kansas City’s bustling and diverse City Market is set to arrive in late summer or early fall — helping bring the historic marketplace district to 100-percent-leased capacity. The Paella Mix, at 25 E. Third St., is expected…
On the map and in the mirror: 1 Million Cups contrasts international eship visitors with KC startup scene
The fail-fast mindset and high risk tolerance many American entrepreneurs employ in their quests to build unicorn startups are arguably foreign concepts to business builders on the other side of the globe, said Lucy-Llonna Larbi. Her experiences in Germany reflect a slower, security-first focus, she said, expressing admiration for the American approach. “We think that…
After coffee, calm: Messenger co-founder, partner envision West Bottoms bathhouse as retreat from what has been
Nearly a year in the works, a first floor space in an 1890s-era West Bottoms warehouse is open and envisioned as the place for a “ritual of pause.” Klā Sanctuary — with its special spa baths and body-oriented treatments — and the tea-focused Selah Lounge share the 6,000-square-foot spot at 1400 W. 13th St. Matthew…
KC-built delivery platform recruiting drivers, retailers ahead of summer app launch
Dwayne Overton is no stranger to the hustle, he said. The Kansas City entrepreneur once juggled gigs with Lyft and DoorDash — jobs that gave him an up-close look at the struggles drivers face every day. Now, as founder and CEO of VendiSafe, he’s building a delivery platform that spins the traditional model on its…