For the most part, I've been an avid user of Google (NASDAQ: GOOG) since it launched ten years ago. It's almost like a natural reflex for me.

I'm not alone. In fact, this partially explains why mega players such as Yahoo! (NASFDAQ: YHOO) and Microsoft (NASDAQ: MSFT) can't seem to make any headway.

So, that's why it was notable when a new search engine hit the internet: Cuil.

The hook? Well, there are more pages indexed. And, the interface is flashier. In other words, it's the anti-Google approach. Interestingly enough, the two founders, Anna Patterson and Russell Power, are former Google employees.

However, when Cuil launched, the messaging was fairly striking; that is, the mission was to be the Google-killer.

In the end, Cuil got a harsh lesson. For users -- who have many choices -- there must be compelling reasons to make a change. Simply put, Cuil fell well short of expectations. For example, a good number of search queries were off-the-mark. As a result, the media slammed Cuil.

According to Techcrunch, Cuil's traffic has plunged since the July launch. It also looks like the company's vice president of product, Louis Monier, has resigned his post (he is a guru of search and a former Google employee).

Something else: Cuil has raised two rounds of venture capital (the latest round was for $25 million). And the valuation? A whopping $200 million (this is according to the analytical work of PE Data Center). In other words, investors will probably need to wait quite awhile to get a return -- if ever.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website.

Cuil's $200 million attack on Google originally appeared on BloggingStocks on Sun, 14 Sep 2008 16:40:00 EST. Please see our terms for use of feeds.