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.

Going into the search business and targeting Google (NASDAQ: GOOG) must carry odds of success which are at least a million to one. But, the market is rich. Google has a market cap of over $150 billion. Even a little piece of that could make a start-up some money. That is if anyone wants another search option beyond Google, Yahoo! (NASDAQ: YHOO), and a number of other services with tiny customers bases.

Some former Google engineers believe they can master their former master. According to The Wall Street Journal, "A startup founded by engineers from Google,Inc. and other tech giants is launching a search engine that claims to cover three times as many Web pages as Google."

The new service is called Cuil. Wish them luck.

Cuil's problem is deeper than is evidenced at first blush. Google not only controls over 60% of the US search market. It also probably indexes as much of the web as almost any user would need. Tripling the number of possible search results is not useful to the huge majority of search engine users.

Search usefulness is driven by the relevance of the results. Cuil has not demonstrated that it can out-Google Google on that front. If it cannot deliver that higher level of relevance, and deliver it by an order of magnitude much greater than the largest incumbent, it will not go anywhere.

In search, quality trumps quantity.

Douglas A. McIntyre is an editor at 247wallst.com.

Google (GOOG) gets some new competition originally appeared on BloggingStocks on Mon, 28 Jul 2008 04:00:00 EST. Please see our terms for use of feeds.