A Cuil $200 Million

Monday, September 15th, 2008 by Jordan McCollum

A Cuil $200 Million

Remember Cuil? No, not “quill,” “cool” as spelled by . . . I don’t know, monkeys. Perhaps I’m the only one having trouble remembering the latest, much-hyped not-quite-Google-killer because I was still in the hospital (here’s why) when it launched (although I did guest blog about Cuil at Bruce Clay, and I still managed to forget what Cuil was…).

Even if Cuil’s launch didn’t go over so well, they lost VP Louis Monier and they aren’t getting traffic, Cuil founders still have a reason to laugh all the way to the bank: a $200 million valuation according to PE Data Center.

Heck, it makes me want to laugh, too. VentureBeat adds some perspective by comparing Cuil’s finances to Powerset’s:

Silicon Valley semantic search engine Powerset commanded a valuation of $40.5 million in its first round, which was considered very high at the time. It failed to meet investor expectations, and sold for $100 million to Microsoft, giving investors somewhat more than a two-fold return.

But Cuil doesn’t offer the same semantic technology as Powerset, so it’s difficult to see how it would get more than a $100 million acquisition offer anytime soon. By valuing Cuil at $200M, it makes it extremely difficult for investors to get a return.

Well, I guess maybe the bubble’s still here.

(via. But I thought of that title all by myself. Am I not clever?)

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10 comments on “A Cuil $200 Million”

Utah SEO Pro Says:

September 15th, 2008 at 4:38 pm

$200k maybe….I said maybe.

Utah SEO Pro’s last blog post..Building an SEO Friendly Site – SES San Jose 2008 Presentation
GinnySkal Says:

September 15th, 2008 at 4:40 pm

Clever headline indeed … especially for the monkeys reading this post, they’ll definitely get it ;o)

GinnySkal’s last blog post..What should you do if your neighbors don’t pick up their dog’s poop?
Justin Seibert Says:

September 15th, 2008 at 4:52 pm

There’s no bubble. The stock market and our economy are healthier than ever! What’s that? Which brothers?

Justin Seibert’s last blog post..Blogs are Crap – More Fallout from the WVU eMBA Scandal
Andy Beal Says:

September 15th, 2008 at 4:54 pm

Very cuil headline!
Don Draper Says:

September 15th, 2008 at 7:19 pm

I’m surprised VentureBeat has so little understanding of how valuations work. An overly rich valuation does not make it harder for investors to get a return, it makes it harder for the founders to get a return. Further rounds at a lower valuation will cause the anti-dillution provisions to kick in, administering a close haircut to the founders. A high valuation only does the founders good if they never have a down round — not bloody likely in this market.

Don Draper’s last blog post..Where is the Nobility in Carpal Tunnel?
IMNJ Says:

September 16th, 2008 at 7:56 am

Valuations are worthless, the bottom line is what someone is willing to pay for it. 200mm is ridiculous with 20mm seeming like a stretch.

IMNJ’s last blog post..Trail Review: Hartshorne Woods County Park
Nicole Price Says:

September 16th, 2008 at 8:18 am

Very clever title indeed! Perhaps it is too early to pass judgment one way or the other?

Nicole Price’s last blog post..Top TV Shows of All Time
BRK Says:

September 16th, 2008 at 10:11 pm

Have we learned nothing from the tech bubble where valuations for companies were totally screwed up? I guess we have the answer here.

You have to admit though, Cuil did one heck of a marketing campaign when it launched. Too bad it couldn’t live up to the hype.

BRK’s last blog post..What’s Wrong with Warren Buffett Stock Picks?
Web Hosting Coupon Codes Says:

September 18th, 2008 at 9:52 pm

That valuing is probably very generous

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UhBuhDuh Says:

September 30th, 2008 at 10:04 pm

$200M for a failure? Maybe the goverment should bail them out!

UhBuhDuh’s last blog post..Why You Need a Website

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