Cuil's Not a Story, but $26 Million on Marketing Might Be One

So, Cuil, a new search engine launches -- cool. But it stinks, and nonetheless gets big media play -- uncool. What gives? Is the world just waking up to search engines other than Google (GOOG)?

Between 2004 and 2006, venture capitalists plowed some $350 million into 79 search engine start-ups, according to the National Venture Capital Association. There are dozens of alternatives to Google. Pick one, anyone, and there's likely to be something interesting to say about it. Weeks ago, one search entrepreneur told me that with $10 million and 18 months, anyone can build a comprehensive search engine.

The experience of Cuil, today's media darling, seems to bear this out. According to Saul Hansell, Cuil has raised $33 million in two rounds of funding, but has spent only $7 million. Ok, so my search entrepreneur was right--- but what is Cuil going to do with the remaining $26 million?

Series A was for $8 million from Tugboat Ventures and Greylock Partners, and series B funding was for $25 million from Madrone Capital Partners.

So, perhaps that's the real story here. Now that it's built a search engine, how will Cuil spend $26 million?

Comments

[mbett:]

Agreed. The results are poor at best (if they return anything at all).

However, the presentation is first rate. Google should pay attention to the way results are presented.

2008 Jul 29 09:38 AM

[Sporkman:]

Cuil's launch received considerable attention from being announced on conservative tabloid The Drudge Report yesterday, presumably due to conservative displeasure with Google & their perceived liberal bias.

2008 Jul 29 09:38 AM

[Blue:]

Tried Cuil last night. Picked up a Trojan within five minutes. That wasn't cool. Won't try it again for a while.

2008 Jul 29 10:22 AM

[User 234400:]

Search this article author's name "Blaise Zerega" and you will see Google behind CUIL in # of results.

This kind of phenomenon (# of google results <~ competing engine) rarely occurred earlier...with 100 other search engines in the last 10 years.

CUIL
5,165 results for Blaise Zerega

Google
4,560 for Blaise Zerega. (0.33 seconds)

Live
3,570 results

Ask.com shows 3,260 results.

2008 Jul 29 07:13 PM