Search Startups May Have Problem With Funding

  • October 10, 2008
Securing venture capital funding to launch a new search company any time in the near future could prove to be difficult--mainly because lots of competition already exists, and search companies are capital-intensive, requiring servers, processing power and a distributed network of data centers.

Adam Fisher, partner at venture capital firm Bessemer Venture Partners, told Online Media Daily that online advertising and marketing related to search continues to be a rapidly growing sector, although the U.S. faces tough economic times.

Fisher does not expect current conditions or credit crises to change the importance of online search. It may temper expectations for growth, but "there's no doubt in anyone's mind that people are using the internet more to search, advertise and find things," he said. "The idea that people would use the Internet less doesn't make sense. It is clear that companies will continue to move advertising dollars from traditional types of media to online. That's a trend we see continuing regardless."--Laurie Sullivan

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