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December 6, 2005 4:00 AM PST

Can there be another Google?

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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.

There's no doubt that investors and entrepreneurs alike are still wistfully eyeballing Google's success.

"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."

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23 comments

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Of course...
If you invent something that almost everyone needs. For example a kind of gasoline that takes 2 cents to produce, you can sell it for a dollar and everyone will still buy it since its much cheaper than regular gasoline. Or a cream that lets hair grow back. Or weight loss, this one is a guarantee for profit. There is tons of stuff that needs to be invented that we dont even know about

<a class="jive-link-external" href="http://work-out.blogspot.com" target="_newWindow">http://work-out.blogspot.com</a>
Posted by SqlserverCode (165 comments )
Reply Link Flag
There is a better search engine: AnooX
To your question as to whether there is or going
to be a better search engine than Google &#38; 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:
<a class="jive-link-external" href="http://www.anoox.com/whyanooxsrbetter.jsp" target="_newWindow">http://www.anoox.com/whyanooxsrbetter.jsp</a>

To be exact Google &#38; 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:
<a class="jive-link-external" href="http://www.anoox.com/where-yg-better.jsp" target="_newWindow">http://www.anoox.com/where-yg-better.jsp</a>

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.
Posted by Info_Max (52 comments )
Reply Link Flag
Anoox search engine
I just use that link to Anoox to search "interactive movies". Apparently, the people voted hard core porn into all ten positions. :) :) :)
Posted by FisherKingKQJ (61 comments )
Link Flag
Anoo is not better, just different
Because of the nature of AnooX
Posted by Al Be (21 comments )
Link Flag
Oops: AnooX is not better, just different
Because of the nature of Anoox, you will always be limited to certain types of searching.
It is cool, but under no means I can be claimed to be better than Yahoo! or Google.
Posted by Al Be (21 comments )
Link Flag
AnooX - HoaX
Why do they need to charge 5$ for you to vote? Why are porn-sites the only high-rated? Why do they have a "earn 20% of our earning"-program? What makes voting better then getting the info using toolbars (alexa, google etc.)? How come sites already indexed, does not show up in the searches?

Something is rotten.
Posted by DaduckDk1 (1 comment )
Link Flag
You've got to be kiddin'
Nothing comes out right!
You are joking right?
Posted by just_chilin (3 comments )
Link Flag
??
I can type in 3 urls, verbatim, and it can't find them. How can this be better?
Posted by ScullyB (52 comments )
Link Flag
Now I see!!
You're the CEO of Netdive!!

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 <a class="jive-link-external" href="http://www.news.com" target="_newWindow">http://www.news.com</a>. It did show up on page 6.
Posted by ScullyB (52 comments )
Link Flag
Everyone is searching for something
Everyone is searching for something; love, jobs, information, people, cars, houses, music, books, movies, apartments, classifieds, etc. I saw Eric Schmidt, CEO of Google, speak at the Nantucket Conference earlier this year. He asked the audience what activities they did on the Internet. The audience responded with all kinds of activities to which Eric replied "That is search".

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. <a class="jive-link-external" href="http://dondodge.typepad.com/the_next_big_thing/2005/12/everyone_is_sea.html" target="_newWindow">http://dondodge.typepad.com/the_next_big_thing/2005/12/everyone_is_sea.html</a>
Posted by Don_Dodge (64 comments )
Reply Link Flag
yep,
Its true, as long as the internet is there, people wil be searching, Google wiil always be in business... That is, if the stay on top.
__________________________________
R.K.
<a class="jive-link-external" href="http://www.Remove-All-Spyware.com/" target="_newWindow">http://www.Remove-All-Spyware.com/</a>
Posted by Roman12 (214 comments )
Link Flag
Googles Chink in the Armor
If a competitor was able to develop a search solution based on an open source solution such as (lucene.apache.org) and develop a similar solution to adsense/adwords, but offered a higher payback to content owners for delivering ads, then google would have to raise their paybacks, in turn that would lower their profits (assuming the placement of an ad is fixed based on an advertising budget), and Wall Street would notice lower profit margins.

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.

<a href="http://www.binaryfrost.com">www.binaryfrost.com</a>
Posted by icenfrosty (9 comments )
Reply Link Flag
Opera take scores!
My fastest and best browser ever!
Posted by nanotecher (1 comment )
Reply Link Flag
Check out AnooX - it is better in many ways
I guess the writer does not know about AnooX Search engine. Until I found out about it too, i thought Goog &#38; yah were the best search engines, but not anymore. I mean think about it:
1- AnooX lets us vote for the search results to democratically change them. Whereas Goog &#38; 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 &#38; 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 &#38; yah pay out $100Mill, Hek $Bill compensations.

So my hat is off to AnooX - go AnooX go :)
Posted by 207495111267145837975635436522 (58 comments )
Reply Link Flag
Do u work for Anoox?
You've got to be kidin'
Posted by just_chilin (3 comments )
Link Flag
Now....
if it only worked!!!

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!!
Posted by ScullyB (52 comments )
Link Flag
I am not going to use Annox just because it give its money way!
Consider the words of Adam Smith...

"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. "
Posted by p.shearer (60 comments )
Link Flag
People sick of Microsoft software being shoved down their throats!
Hallelujah to Google!!

people are just sick &#38; tired of Microsoft crap.

people want good software &#38; 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!

&#38; the Price is Right!!


Cheers!!
Posted by BillyWarhol (12 comments )
Reply Link Flag
Hallelujah is right!
I assume your use of religious terms denotes this is a religious issue with you? I too celebrate Google, but not because they are kicking Microsoft rear. Its because they brought to the market a better business model. Microsoft has done great things for the industry. So has Google. Remember its free markets that gave us both.
Posted by p.shearer (60 comments )
Link Flag
Go Google!
<a class="jive-link-external" href="http://www.analogstereo.com/cadillac_deville_owners_manual.htm" target="_newWindow">http://www.analogstereo.com/cadillac_deville_owners_manual.htm</a>
Posted by 208774626618253979477959487856 (176 comments )
Reply Link Flag
 

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