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
LaunchKC-backed insurtech accelerator hopes to claim new cohort by Aug. 22
Brush Creek Partners and LaunchKC are again eyeing startups ready to accelerate their go-to-market plans, the partners announced Tuesday. The application period for the LaunchKC-backed bcp tech InsurTech accelerator has officially opened, Nathan Kurtz, COO of Brush Creek Partners (bcp), said in a release, marking the program’s second run. “When you have an insurtech product…
Tech company at the vanguard of KC startup boom exits to West Coast competitor
One of Kansas City’s earliest startups to watch of the past decade has been acquired by an Oregon-based competitor. RFPIO announced the purchase of RFP360, a Leawood-based software-as-a-service startup, Tuesday morning. A dollar amount for the deal was not disclosed. “Through this acquisition, I’m extremely excited about the future as we work together to drive…
Let’s Talk Black Business: You don’t need to be ‘the next Lebron’ — just succeed where others fell short
Editor’s note: The following story — spotlighting an Aug. 25 virtual event about challenges facing Black business owners — is sponsored by Let’s Talk Black Business and SCORE Community Strategic Alliance. Black entrepreneurship isn’t a one-size-fits-all experience, said Dom Green. “It is not cookie cutter, and it is so important to showcase the differences of the…
WyCo Vintage — boasting world’s largest collection of vintage tees — opens second sister-shop on Broadway
Patrick Klima likely does more laundry than anyone else in Kansas City, he said, half-joking. “The WyCo Vintage inventory is constantly being updated. We’ve been doing weekly drops of about 75 or so vintage shirts for the past four years — which means a lot of washing, shooting, SEO stuff and social media,” explained Klima,…