VentureBeat

Declaring it has “perfected the user experience” for audio and visual search, Seattle start-up Pluggd has raised $1.65 million from Intel and angel investors to help it start distributing its technology.

If you haven’t played with Pluggd, you should. It provides that “wow” experience, giving you what you intuitively want when searching video: a way to skip forward to the exact part of the audio or video file you are looking for. We’ll be hearing more about Pluggd next year, as it begins to cut partnership deals with major publishers, and comes out of the testing phase it launched two months ago.

Let’s take an example.

Take this ESPN radio recording from yesterday. Select the “find” tab, and type in the word “Marlins.” Pluggd will show you in the heat map the places most likely to be interesting to you. Orange shows a very high match. If you move the cursor there, you’ll hear the part about the Marlins. (You can do this by clicking on this image at left. You may be prompted to update your Flash player; go ahead and do so.)

But it gets even better.

Pluggd finds related words. Let’s say you’re looking for anything to do with injury, because you’d heard that Kobe Bryant might be injured. You type in “injury,” and Pluggd locates the part where the radio mentions his sprained ankle, even though the word “injury” is never mentioned in the audio. (Again, you can try this by clicking on image at left.)

This is impressive. Pluggd can do this by analyzing pages and pages of sports articles, and finding the statistical relationships between words. Its crawler finds that sprained ankle is very clearly correlated with the word injury over time. It does this without any sort of human domain experts. No one is doggedly typing in these associations behind the scenes. It is all automated, relying on the great database called the Web. “The Web itself represents mankind’s knowledge,” says Alexander Castro.

Right now, this cool search is only available at Pluggd’s demo site. And in case we’ve lost you, here’s a screencast tour.

Meanwhile, Pluggd has also building an inventory of ESPN and other files — now numbering more than a million — and it is busy indexing them all, so that it can make them available for crawling with its technology. Like Google, it wants to become a destination site. Also like Google, it wants to offer its technology to publishers, too, and Pluggd says it will be announcing various deals next year.

The company has boot-strapped itself until now, and the $1.65 million can be considered a seed round, to be converted into a first VC round sometime next year.

Intel made up a good portion of the investment, but more than half was contributed by a group of angels, including Scott Oki, former senior vice president for sales, marketing and service at Microsoft and Paul Maritz, former Microsoft group vice president of systems and applications. Other angels include:

–Brian Magierski, CEO of Kalivo, former co-founder/CEO of iMark (acquired by Ariba);
–Fraser Black, technology investor
–Bill Bryant, founder and investor in numerous search-focused startups including Netbot, Medio and Singingfish;
–Alex Alben, former executive at Starwave and RealNetworks;
–Barry Newman, venture partner at NeoCarta, former vice chairman of the technology group at Bear Stearns;
–Mark Klebanoff, former chief financial officer at RealNetworks.

There are a multitude of other companies focused on audio and video search (Pixsy, Podzinger and CastTV, for example), but none that are using Pluggd’s heat map approach that takes you directly to where you want to go.

Qihoo, a fast-growing but controversial Chinese search engine for Web 2.0 content, has raised $25 million more in a second round of venture capital from credible U.S investors.

This is significant because Qihoo has launched a new kind of search engine, dedicated to Web 2.0 content — focused on blogs and forums, for example — that has seen its traffic spike in China. Page views have grown from tens of millions of page views a day, to a hundred million page views by the end of this year, the company says. If true, after a mere year’s operation, Qihoo is about a third the size of Chinese industry leader Baidu. The funding brings Qihoo’s total to a whopping $45 million, a significant amount of capital for a Chinese company.

This is a victory for Qihoo’s chief executive and founder, Hongyi Zhou (pictured left), who has come under fierce personal attack from Jack Ma (pictured below), chief executive of rival, Alibaba. We reported on the controversy here, and many people told us Zhou’s fight with the Ma would tarnish his reputation — because of Ma’s clout. Alibaba operates its own search property, Yahoo China, which has sued Qihoo, and has been readying a suit against Zhou directly.

However, U.S. venture capital firm Highland Capital Partners has braced itself and taken the lead to invest in the company. Also investing are Redpoint Ventures and existing investors Sequoia Capital China, CDH, Matrix Partners and IDG Ventures. Sequoia and Matrix have historically been among the best performing venture capital firms. As reported, Alibaba and Yahoo exerted pressure on investors, including Sequoia, to avoid backing Qihoo. VentureBeat reported that Yahoo’s co-founder Jerry Yang and Sequoia’s Michael Moritz were even forced to a meeting over the dispute.

VentureBeat just spoke with Dan Nova (below) of Highland, who will be joining Qihoo’s board. Nova is experienced in search, having co-founded Lycos and invested in Ask Jeeves. His firm has traveled frequently to China and met with more than a hundred companies there, Nova said.

He said ironically, the media attention generated by the Ma-Zhou fight has not hurt Qihoo, rather helped it.

“This is a classic David versus Goliath story,” he said. “The more press we continue to get, the more traffic we get — the traffic is through the roof.”

He hopes the legal disputes can be resolved, he said. “They didn’t serve the purpose they’d intended, which was to make investors nervous about investing in Qihoo,” he said of Alibaba’s legal moves and other threats.

Nova said he is not concerned about potential lawsuits. Zhou is not a liability, he said, noting that Zhou has demonstrated his prowess and integrity by founding search company 3721 (later bought by Yahoo), and by the fact that his backers at 3721 (IDG, for example) are backing him again at Qihoo. “He’s a rock-star among Chinese entrepreneurs,” Nova said.

He said Qihoo is pioneering a new kind of search, focused on unstructured, user-generated content of the type found on blogs and Chinese online bulletin boards, which is more dynamic, and something Google’s Blog Search has been patchy at, he said. He said Qihoo’s architecture is its secret sauce, but that it takes the best of Digg, Google and Technorati and rolls them up into one. He said Qihoo is not trying to duplicate Google’s main engine search, but that the Chinese users are interested in lighter subjects, such as lifestyle and entertainment — a strength of Qihoo, he said. (Politics is avoided for obvious reasons).