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
How a KC mom and her 12-year-old co-founder are rewriting the book on entrepreneurship
Guiding young people through the ins and outs of entrepreneurship is a family affair for Tovah Tanner, a metro woman on a mission to create a Kansas City that thinks critically, holds values, and possesses life skills that build lasting wealth. “My son, Madden Tanner, is our co-founder. He’s 12 years old,” Tanner said, recalling…
Crafted within hip hop culture, Black-owned KC cannabis brand hopes to reshape a flowering industry
It isn’t enough to be first, Ronald Rice said, announcing Franklin’s Stash House’s entry into Greenlight stores — a move that sees the Kansas City cannabis company become the first Black-owned brand sold at a dispensary in the state. “While this deal represents a big milestone in the evolution of Missouri’s cannabis industry, the legacy of…
‘Feelings matter’: Why KC culture experts’ new anxiety rating could prevent stress from ruining careers
Editor’s note: The following story — a spotlight on a member of the Plexpod community — is sponsored by Plexpod, a progressive coworking platform offering next generation workspace for entrepreneurs, startups, and growth-stage companies of all sizes. Measuring the unmeasurable is Culture Think Tank’s specialty when it comes to company culture, said William Lindstrom. “With the…
She earned 21K followers with a plastic circle; now Angela Presnell hoops to transfer social media popularity to a paid platform
An Instagram page launched in 2016 to document then-college freshman Angela Presnell’s progression in hooping today reaches more than 21,000 followers — and sends the active entrepreneur across the globe to teach her artform in person. “I needed some sort of creative outlet that could be totally mine,” said Presnell, the 24-year-old Kansas Citian behind…