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
KC’s housing market makes young professionals’ first homes more elusive; here’s how four of them are making it work
As newcomers to Kansas City in 2019, Ria Rao and Morgan Bannerman found community co-living with other young professionals under the same roof. Now they’re hoping to replicate that environment — this time as homeowners. The move comes in large part out of necessity. Amid a highly competitive housing market, locating an on-budget home — and…
Meet 10 finalists for AltCap Your Biz pitch payout; competition returns during GEW KC
A diverse group of nearly a dozen small businesses are advancing to the next round of the annual AltCap Your Biz: Pitch Competition with finalists ranging from a mobile vegan soul food service to a Northland selfie experience. The “Closing the Deal” live pitch event showcases the 10 best concepts from a pool of 43…
Just funded: Sharks, crowd salute veteran-led tech newcomer with $32K in Pure Pitch Rally checks
A fresh face to the startup stage, Zachary Oshinbanjo left Monday’s Pure Pitch Rally with the most-funded venture of the event — taking home more than a third of the day’s nearly $90,000 in cash prizes. A U.S. Army veteran, Oshinbanjo pitched “land sharks” on Vetelligence — a tech platform that aims to create a…
Flyover Capital adds managing partner with fresh perspective on KC, tech investment expertise
A month after announcing its more than $60 million Tech Fund II, Flyover Capital is adding to its leadership team — appointing Tristan Mace, a serial tech entrepreneur and investor, as a managing partner at the Overland Park-based venture capital firm. “I’m excited to join Flyover Capital as we build on our success of contributing…