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Posts Tagged ‘inv:Tugboat-Ventures’

Even though I try to approach every startup with an open mind, there are few companies more likely to provoke knee-jerk skepticism than those claiming to compete head-to-head with Google in Web search. But a new company called Cuil looks like it could actually give Google some real competition.

For one thing, the executives behind Menlo Park, Calif.-based Cuil (pronounced “cool,” and previously spelled “Cuill”) should have a good idea of what’s needed to take on the search giant. Cofounders Anna Patterson and Russell Power both helped create Google’s large search index TeraGoogle, while the third cofounder, Tom Costello, (who is also the company’s chief executive and Patterson’s husband) worked on the WebFountain analytics engine at IBM and as a researcher at Stanford. Their vice president of products, Louis Monier, has worked at Google and eBay, and is best known for designing pioneering search engine AltaVista.

Until now, Cuil has been getting attention for the pedigree of its team and for raising $33 million from Madrone Capital Partners, Tugboat Ventures and Greylock Partners. The company has been secretive about its product, but Patterson recently gave me a sneak peek of the Cuil search engine, which is launching tonight.



The biggest difference between Cuil and competitors like Google is the size of its index. At launch, Cuil’s index includes 120 billion Web pages, making it three times the size of Google’s, Patterson says. (This may be a bit confusing, since Google just announced that it has found 1 trillion unique URLs on the Web. The distinction is that Google doesn’t include all those pages in its index.) Bigger is better, and not just for the obvious reason that Cuil can return more results for most searches. That larger index also provides Cuil with more data to determine which results are most relevant. Patterson says Cuil can index more pages for a fraction of the normal cost because each query is directed to a specialized, subject-specific machine and doesn’t require a search of the full index.

Cuil has some other cool features. Its ranking is based less on popularity (which is commonly measured by links, although Microsoft researchers just presented a paper on BrowseRank, a new ranking method based on the number and duration of user visits), and more on content. For example, Cuil would understand that someone performing a search for “baby,” “aspirin” and “fever” is probably looking for medical advice, and results with related medical terms would be ranked higher than a gossip page about Britney Spears’ baby. Cuil also uses a tab-style layout to make it easier to break down your search into related searches and smaller subjects.

A smart approach. But with Google’s market dominance, will anyone use it? Well, Cuil probably won’t become your top choice for a Web search right away, but Patterson notes that many users have backup search engines that they visit when Google’s results are unsatisfactory. People may give Cuil a chance as their Google backup, and if the results are consistently better, usage will rise. As with other search companies, Cuil’s business model is based primarily on advertising, although it’s launching without ads.

Cuil didn’t make a demo version available to me, so I haven’t had a chance to really kick the tires. I’m certainly looking forward to giving it a try over the next few days. If you give Cuil a shot, let me know what you think in the comments.

richrelevance.jpgRichrelevance, a new San Francisco company offering personalized recommendations for online shopping businesses, has raised $4.2 million in a second round of financing.

The company joins a host of other companies — including Amazon, Aggregrate Knowledge and Wunderloop (see our coverage ) — that track what decisions you make while shopping online. Like these other companies, it then peers into its archives to find other users who have made similar decisions to you, so that it can recommend to you things that people with similar tastes have also bought.

We haven’t written about this company before. It has been secretive, raising a single round of financing last year from venture firms Draper Fisher Jurvetson, Draper Richards and angel investors.

The latest financing comes from Greylock Partners and Tugboat Ventures.

The company plans to make more of public splash in June.

Notably, the company’s chief executive, David Selinger, previously managed Amazon’s data mining and personalization R&D team, including its personalization engine. Amazon was a pathbreaker in personal recommendation area. Also, his most recent post was as at Overstock.com, where he led data mining. Overstock was an early customer of Aggregate Knowledge. So Selinger knows his competitors — Amazon, and Aggregate Knowledge - well.

The company says its product outperforms competing collaborative filter companies by using “more than fifteen recommendation types combined with transparent messaging, continuous optimization, and merchandiser controls.”

We’ll try to find out more on this company and see if see if it lives up to its hype.

saynow-lede-logo2.jpgSayNow, a Palo Alto company that provides a free calling service to bands on Myspace to stay in touch with their fans, has raised $7.5 million in venture capital.

For now, it’s difficult to see how SayNow can make serious money from its model. Free calls?

To recap, the service (previous coverage here) offers bands a dedicated phone line, allowing them to leave a voice message for their fans. The musicians do this by placing a widget on their Web site, listing a unique phone number. Fans can call and listen to the message, leave messages for the band, and register to get updates. The musicians can give the number out at concerts — and the one-to-many relationship is made very easy. (See screenshot below for example of a Web page widget for Alicia Keys).

But with phone calls extremely cheap, and with musicians having many voice-message alternatives for outreach, how does SayNow plan to make money — the boatloads of money that venture investors pine for?

Chief executive Nikhyl Singhal explains that the trick is to take a cut of advertising in audio ads played during the voice recordings. SayNow will also let musicians pitch a ringtone to their fans. They’ll talk about their latest song, and offer fans a way to download a ringtones version of it. Fans press “1″ to buy the ringtones, for say $2.99. SayNow might get 25 cents of that. Singhal says between 20 and 50 percent of fans are actually buying the ringtones in tests.

The company isn’t disclosing revenue, but it’s cutting revenue sharing deals with musicians — now that it has tested its platform for a year. The ringtones sale feature is still being tested, however, with revenue share contracts to begin next month, Singhal says.

SayNow has 870,000 subscribers, or fans who have opted to receive messages from musicians. Certain musicians get a lot of calls. Chris brown, for example, had 25,000 callers in five days after publicizing his number. If you do the math, even that volume isn’t robust enough to build a great business on. The advertising rates are relatively high: Advertisers pay $20 and $60 per a thousand calls. That’s good, but SayNow only gets a cut of that, and gives most of it to the publisher.

SayNow competes with companies like Snapvine, which gives out a single number, and then provides individual extensions for each artist. That company has sought to drive adoption among individual users, directing them to register at the site to get their own Web widget too. That company says it has millions of users. Mozes, another competitor, lets bands give out a text code to stay in touch with fans.

Investors include Shasta Ventures, Tugboat Ventures’ Dave Whorton and Costella Kirsch.

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