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
Developers unveil ‘The Parker’ at historic jazz site; the latest 18th & Vine reboot project
‘We will have an 18th and Vine where we don’t just tell stories, but where we make new ones,’ said Mayor Quinton Lucas. ‘And we will have an 18th and Vine that continues to be a crown jewel – not just of our Black community – but of our entire region.’ Respecting the hallowed ground…
Innovation index: Cross-newsroom startup data partnership puts Kansas City on the map
Finding relevant, actionable information on innovation happening in one’s own backyard can be tough, said Christopher Wink, announcing Kansas City’s inclusion within a new resource for navigating innovation communities. “Every metro region, every state has some website or page — ‘This is where you start if you’re going to join the KC tech community or…
This duo plans to takedown one of female wrestlers’ most ‘mortifying’ foes: the wrong kind of exposure
Two women-owned Kansas businesses are teaming up to ensure that female wrestlers don’t get pinned by a wardrobe malfunction mid-match, shared Deb North and Frankie Elder-Reedy. It’s a pairing that shows for these sole sisters, entrepreneurship is more than an individual sport. Topeka-based Yes! Athletics is going to the mat with the Apex high-impact sports…
Entrepreneur featured on Hallmark show finds identity beyond motherhood (with help from Connie Britton and her own KC Team Mom)
When Kansas City’s Rochelle Owens answered a message from Hallmark, she had no idea it would launch her into the national spotlight — or transform her life as a single mother and aspiring entrepreneur. Owens is the featured mom in Monday’s episode of The Motherhood, Hallmark’s new reality series created and hosted by actress Connie…