Google Acquires Aardvark For $50 million
techcrunch.com
techcrunch.com
I think this is probably more of a talent acquisition than anything:
Just the _highlights_ from http://vark.com/team
* Max Ventilla - former Googler; marketing and monetization
* Nathan Stoll - former Googler; headed Google News for three years
* Fritz Schneider - former Googler; founded and led Google's Firefox and Safe Browsing teams
* Winton Davies - founding member of Yahoo Research Labs and a Principal Research Engineer at Overture, GoTo, and Cadabra.
* Bill MacCartney - former Googler; designed an automated question answering system at Google Research
* Sameer Paranjpye - founded and headed Yahoo’s Grid Computing team, responsible for the Apache Hadoop project
--
Aardvark has also come out with some great research projects in the past few weeks/months. [http://vark.com/aardvarkFinalWWW2010.pdf]
"Back in October, we wrote a research paper entitled 'Anatomy of a Large-Scale Social Search Engine' and submitted it to WWW 2010. We found out last week that it has been accepted, so we wanted to share a preview with you today!
Our paper was inspired by the classic Google paper, 'Anatomy of a Large-Scale Hypertextual Web Search Engine', in which =>Sergey Brin and Larry Page<= originally describe the algorithms and architecture of Google. This paper was published 12 years ago in the same WWW conference."
Additionally, what other business case could their be to purchase such a small, new company. Couldn't Google just have integrated these features into their shiny new Buzz service _last week_ and have overshadowed Vark very quickly?
Just a guess really, but what they are doing now make be considerably more exciting than what they were doing at Google previously.
I wouldn't spit on it obviously, but considering some of these guys' former positions at Google, they had probably made a good amount from stocks and such. What I'm trying to say is that it's probably in the same order of magnitude of their worth before that.
It turns out, everything is friend based. Know rich people? They'll help you get rich too. Have a project you don't want to do inside of Google? Just quit, make it anyway, then they'll re-hire you with a $5M per head bonus.
I'd find it delightful if I were in such a position, but I'm not. Not only am I not, but the more technical side of me doesn't want to play social games to become ingratiated to the decision makers. Deep down, I still believe the world is merit based -- and that's one reason why I'm still a nobody doing nothing going nowhere.
I'd be better off not reading HN most days.
I can confirm this. Contrariwise, knowing poor people can help you get poor. Such is life.
Create something remarkable and people with money will find you.
By "merit," I meant actual accomplishments and not some ethereal quality of a person or group just sitting idle.
I'm glad you chimed in though because you're one of the cases that kind-of fits the model above. From a complete outsider's point of view, it looks like friends giving friends tens of millions of dollars for nebulous reasons.
* Disclaimer: Text is a poor medium of communication and usually comes across more hostile in the reader's eyes than intended. There is much levity here.
If your point is that people can build future success on top of past success, yes obviously that is true, but there is nothing wrong with that. It means that you need to work at it for a while and not expect people to simply hand you whatever you want because of some imagined "merit".
Edit (because there's not reply link for some reason): Where do you think reputation comes from? You have to start by doing something, and over time if you keep doing things that makes you more valuable.
Even the 'remarkable' thing is not entirely true. I don't think facebook or microsoft were remarkable, for example, they just hit the right combination of luck and skill at execution. Google on the other hand, was an example of something remarkable when it first appeared.
All in all, though, I think it wise to hold yourself responsible for your accomplishments - both geographic location and your circle of acquaintances is something you have significant control over.
"All in all, though, I think it wise to hold yourself responsible for your accomplishments - both geographic location and your circle of acquaintances is something you have significant control over." I agree in spirit, but the reality is different.
Yes. -if you're a white/asian male -born to middle class parents -and you're parents emphasized education -and good nutrition/genes so that you grow to above average height -and that you go to a good college -and can fit in with the right crowd yes, you simply move to silicon valley/manhattan/london and fit right in. IF you're a black man from a poor single parent family in small town mississippi, or the daughter of a farmer from a village in bangladesh, things are much more difficult.
That's how Bill Gates made $100B. He had an opportunity to monopolize desktop OS'es and the luck/insight to bet they would one day be worth a lot, and the skills to execute on that opportunity. Yes, that kind of opportunity is very rare, but $1-100M opportunities are not.
That said, I agree with everything else you said - I agree that I'd much more like to live in a world where a black person with a poor single parent in a small town in Mississippi is given the tools to take advantage of the same opportunities as a Kennedy, but we should also accept that although it's something to strive for, and something to take steps towards (affirmative action/universal education/healthcare), there are also aspects which make it impossible. Ironically, one step towards equality is the removal of the meme "I was born <this and that>, so I can never accomplish what Bill Gates did".
It compounds. The first time you hear that somebody just wrote something cool, you think "oh, that was nifty", and promptly forget about it a day later. The second time you hear it, you think, "Don't I remember hearing his name somewhere?" The third time, you think "Hmm, maybe I should watch out for this guy." By the fourth or fifth time, if you have money you want to invest it in him, and if you don't you want to work with him.
I've met a bunch of rich people, and in my experience, they're all basically the same as normal people. They're impressed by similar things. So think about the people you find impressive, and try to be like them.
Seriously, what are you going to say next? That the world is not fair? Only the 'remarkable' by your standards should see market success? That is wrong to get lucky, to be at the right place and right time?
it's a fair and legitimate point that it's easier for already famous people to get their company acquired than it is for a nobody
it's naive to thinks it all about remarkable products, or even luck, politics comes into it
edit: and you can 'dazzle' the acquirers with your reputation and nudge things along. Even if that hurts your reputation in the future, you can be making this as a last ditch cash grab. Kind out of taking out a mortgage and fleeing the country - or the 2000 tech boom and the current housing crisis
It's naive to think that only products remarkable by your standards should see success in the market place.
It's another thing to be jealous of the success of others, because the world is not a zero sum game.
I'm done with this pissing match, I think I already said too much - say whatever you want, but your subtle attack on Friendfeed is malicious and I do not agree.
no hard feelings, goodday
Otherwise, you make the best bets you can.
Way off base IMO. If it was true, there would be very few ex-googler companies failing. And there would be A LOT more acquisitions by Google.
I have used Vark. And I think this was a SOLID technology acquisition and well worth $50M.
If I was a Vark founder, I'd feel insulted by your post.
So is the difference the cost of mostly re-acquiring talent? Talent that you had already ascribed a value to when you employed them through assessing their annual performance?
Not quite. I am implying that Google thinks the risk associated with doing it on their own is not worth the $50m for the acquisition.
It is way more complex than simply about tech and traction. ie. lets say google can build the same thing for $10M. But hey it might take them 2 years. In the same 2 years, a competition(Microsoft) might acquire Vark and turn it into a billion dollar competitor to google.
On the flip side, even if Google can build it for 10M and launch in 6 months, the risk from the other possibility is not worth the 40M in savings.
But overall your negativity throws me off a bit. One definitely notices when a company with many ex-Googlers is bought by Google. But if you think that's how the world is, nothing really stops you from joining Google: what were these guys doing before joining Google in the first place?
Networking definitely helps in a lot of situations (to find a job, to make a deal, to get in touch with the right people), but you can do something to arrive at a place where you can easily network with the right people.
Surely it's like the girl who sleeps with the boss gets a promotion. Sure, if you want a promotion you could sleep with the boss too, but it'd be nice if everything was just fair and done on merit. Not everyone wants to sleep with the boss.
Sorry, but to me that comes across as whining, and I'm most certainly not from the "rich circles" either.
And you can certainly get a promotion many ways aside from sleeping with the boss.
Imagine that you have something lots and lots of people want - say, a few hundred million dollars to give away in venture capital. Naturally, since lots of people want it, you're constantly bombarded by requests. After a short period of time, all these requests start to seem the same. Everybody has their startup baby. They all are absolutely certain that it's going to change the world. Most of them have very little experience and nothing in particular to recommend them.
If you're in this situation, what would you do? Every startup looks the same; you don't have enough information to pick one over another. You don't even enough time to begin gathering information to pick one over another.
So you winnow the field by picking ones that stand out for some reason. The easiest way is to pick only the ones that come recommended by friends. After all, you have a limited number of true friends, and they know how busy you are, and so they'll only forward on ventures that they really believe have potential.
The second easiest way is to pick founders whose names you recognize. Or founders whose past projects have names you recognize. There are a limited number of names that you'd recognize, and most of them are not asking you for venture capital, so this is a fairly safe way to narrow down the field.
Other than that, pretty much any way you choose of picking startups will be essentially random. It's like the half-season of House where he was picking his new team and randomly fired half the applicants. You wouldn't think that's fair either, right? Yet how else are you going to determine merit when you have far too many candidates to investigate each one in depth?
What you may not realize is that everyone is knowable if you put enough effort into it. If you have no drive and no talent, rich people won't be able to help you. There aren't that many driven and talented people out there, so if you're one of them, and you make an effort to meet rich people, they'll help you too.
If you have real traction - as in people are already buying from you, without you going out and selling them hard - rich people will be knocking at your door trying to get a piece of the action. But then, if people were already buying from you, why would you need rich people?
I beg to differ, if you assume that there are an equal distribution of talented/driven people, then how come there are more millionaires (talented people) in silicon valley than the rest of america, and america more than europe, and europe more than the rest of the world.
More likely is that rich people are cliquey and luckier/lazier/less talented at spotting opportunity/investing than they give themselves credit for (otherwise you'd see a more equal distribution of investment to where the talent is).
$50 million sounds like a lot initially but considering the size of the founding team and that they raised 6 million from VCs I don't think any of them would want to retire just yet.
Talent doesn't make sense at that price, more like a few million. The tech can't be that out of the ordinary for Google given they just launched Buzz and Wave. So what was it that deserved that price? Bidding war?
"Take a minute and answer this two-part question:
1. Is the percentage of African nations in the United Nations higher or lower than 65? 2. What is the percentage of African nations in the United Nations?
This was one of the queries that Amos Tversky and Daniel Kahneman posed in their 1974 paper in Science called “Judgment Under Uncertainty: Heuristics and Biases.” It turns out that the answer you provide to the second question is heavily swayed by that first question. The average estimate for question two was above 45 percent. When question one was lowered from 65 percent to 10 percent, the average estimation of question two was dropped to 25 percent. "
Source: http://sethgodin.typepad.com/files/26237737-fixed-to-flexibl...
In a financial negotiation, setting an anchor can be powerful. a VC investment (and accompanying valuation) is an anchor.
Plus they get the cool early-adopter-of-new-search-technology userbase.
This might be wrong more often than it's wrong, but if it does work the payoff could be enormous. Who knows in this case. But I suggest you think of it as an investment at $50 million pre-money. That's a little pricey, but might still be worth it.
Sometimes I guess acquisitions are just random, and likely more about the people involved than anything else.
(Type 'tag' to fix that label, 'more' for options, or 'cancel'.) Sent at 2:51 PM on Thursday aardvark: (Update: No response yet from people who know about Aardvark -- but I'm still looking. Type 'tag:' followed by a different category to try other people.) Sent at 3:01 PM on Thursday aardvark: (An answer just arrived... From Derek P./28/M/Brookville,PA, Re: Aardvark) That's what I'm trying to find out. I tend to hate services like this, that are for people too dumb to Google. ... WAIT A MINUTE?! (To reply, type 'Derek:' followed by a message, or type 'flag' if this answer is inappropriate. Type 'more' for options.)
This is also why they should acquire Yelp -- it's not about the tech (in fact, Yelp is built on Google maps). It's about the interface.
http://www.youtube.com/watch?v=d_W6Qbob2mg#t=10m10s
I was like "this sounds like Aardvark".
Really?
Pagerank doesnt have anything to do with twitter and facebook.
Its a great idea, and its probably one of the major factors that made google a success, but today it is not a very important factor in google being a bigger company than fb and twitter.
Edit:But going back to your point, I not sure Pagerank is relevant to twitter/facebook, and I don't think Sergey was saying that it was. But I do think their could be search problem emerging in social networks when people start having several hundred friends and you want to find relevant conversations to your interests going on within your network.
For example, looking through my old questions, I think it automatically tagged "what's a good place to get a cheap SSL certificate? I don't think I need wildcard subdomains" as "SSL".
In a perfect world, you ask Google a question just like you'd ask a person a question, and they answer it with the info you want, so they might be interested in the technology and people that make this intelligent tagging work as a step in that direction.
They might have some as-yet-undisclosed IP which one of the big search companies would be able to defend - rather own it than fight it.
Also, integrating the already-refined code and ideas into Buzz, Wave, Orkut, other future social initiatives.
An example of a question (and an awesome answer) I submitted: http://vark.com/t/cad4a0
Like many social networking features, I don't get this one. I sorta-know what my friends know - I am more interested in stuff my friends don't know.
I've also never actually gotten a question from a friend.