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"There has been quite a bit of venture activity lately in the search market, but more in complementary technologies and smaller, more niche search companies," like search for photos, jobs and local classifieds, said Josh Grove, a research analyst at the venture capital research firm VentureOne, a Dow Jones company.
The number of search equity investment deals in the United States has risen to 31 so far this year, up from 27 in 2004, and just eight in 2001, according to statistics from VentureOne and Ernst & Young. The amount raised, meanwhile, has been $176.9 million so far this year, surpassing last year's $164.9 million and about three times what it was in the two prior years combined, the study shows.
Feeding that venture capital activity, Google and Yahoo are in investment and acquisition mode.
"Google and Yahoo are sitting on huge amounts of cash, and they are buying companies at extremely early stages. I've heard of a number of venture capitalists getting annoyed (with the fact that) before they can get to a company, Google has bought them," Haacke said.
Among the recent Google acquisitions are Web analytics company Urchin, photo-sharing company Picasa and mobile software companies Android and Dodgeball.
"Historically, our (mergers and acquisitions) strategy has been to look for unique products, technologies and engineering teams that can help us provide innovative products to our users or enhance our existing services," Google spokeswoman Lynn Fox wrote in an e-mail response to questions.
For its part, Yahoo this year acquired Flickr, the popular photo sharing Web site, and Pixoria, whose Konfabulator technology is used in Yahoo Widgets, a service that lets people run small, customizable desktop applications.
"Start-up companies mostly are focused on developing specialized search technologies, vertical search, for things like travel, sports or health care," said Stewart Alsop, a partner at the venture capital firm New Enterprises Associates.
So what's next? Some think the search sector is already primed for some consolidation. There also are plenty of rumors that Time Warner is either looking for a partner or even interested in selling AOL.
But don't think the IPO spigot is completely shut off for search companies.
Allen Morgan, managing director of the Mayfield Fund, which invested in general search engine Snap this year, still predicts that, though the only noteworthy IPO in the U.S. this year was Chinese search engine Baidu.com, there will be a few next year and in 2007. That could give the latest band of start-ups time to mature.
"We are all blown away by Google," said Joe Bartlett, a venture capital lawyer and founder of VC Experts, a resource for data and analytics on private equity. Even "at the height of the bubble, nobody has ever seen anything like Google. I've been an investor in some pretty fancy companies, and (legal) counsel to others that have had meteoric climbs, but Google has people mesmerized."
"Nobody," Bartlett added, "thought you could climb out of Stanford and in a few years be duking it out with Microsoft."
See more CNET content tagged:
nich, Wall Street, leader, venture capital, Time Warner Inc.






http://work-out.blogspot.com
to be a better search engine than Google & Yahoo,
the answer is YES, it is already out, albeit in
Beta mode, it is called AnooX. Why AnooX is
better, it is because AnooX results are 1st
machine generated but then made better by the
majority Vote of the People, a patent pending
technology that only AnooX uses in generating
search results. You can see the details of this
here:
http://www.anoox.com/whyanooxsrbetter.jsp
To be exact Google & Yahoo are better than AnooX
in certain aspects, aspects that only have to do
with number of servers that AnooX runs on vs
them, which has simply to do with amount of
funding available to AnooX currently, you can
read details of this here:
http://www.anoox.com/where-yg-better.jsp
And finally AnooX is much better than Google or
Yahoo for Advertisers since Ads on AnooX cost an
average of 5 Cents per click vs 65 Cents per click
for them which is a saving of 90% or MORE for
advertisers.
So yes, there is a better search engine than
Google or Yahoo, if you just type www.anoox.com
and get involved, because AnooX is run by the
people, for the people.
It is cool, but under no means I can be claimed to be better than Yahoo! or Google.
Something is rotten.
You are joking right?
Nice job with your advertising.
One would think that if you type a specific url that it would be first in the search or at least on the first page. try http://www.news.com. It did show up on page 6.
Can there be another google? Absolutely! I wrote a blog today on this subject and outlined many specialty search areas that could generate billions of dollars in revenue. You can read it here. http://dondodge.typepad.com/the_next_big_thing/2005/12/everyone_is_sea.html
__________________________________
R.K.
http://www.Remove-All-Spyware.com/
Google would still be around of course, and that's good that they are, but I'm talking about competition. Right now they have very little competition. Yahoo is really the only one that can compete at this time. Microsoft will eventually get there.
The key to offset Google is a low overhead operation. Just my thoughts.
www.binaryfrost.com
1- AnooX lets us vote for the search results to democratically change them. Whereas Goog & yah tell us to go screw ourselves, they know what is best search results and that is it. Of course unless you pay $10000s of dollars to SEO, etc. and maybe then just maybe change a result. What a crock :(
2- AnooX Advertising rates are like 90% less than Goog & yah, now that is what I call savings.
3- AnooX gives its profit away for the benefit of the people, that is us. Whereas Goog & yah pay out $100Mill, Hek $Bill compensations.
So my hat is off to AnooX - go AnooX go :)
Of 12 domains that I checked, using their URL, it could find zero results. Kind of hard to vote for a website if it can't find it!!
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love. "
people are just sick & tired of Microsoft crap.
people want good software & people want choice.
Good riddance to Microsoft.
Yer monopolistic ways due to corporate bureaucratic idiots (think large corporations) who didn't care about the end-user having to use crap software has been the Sham of the century*
Google might not be perfect but their search technology is still pretty amazing!
& the Price is Right!!
Cheers!!
- Go Google!
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