I seem to recall they wanted to sell out to Yahoo for $10 million (1999? 2000?), but apparently, that was too much for Yahoo's liking.
[1] I only know this because I still have the bookmarks from the time on my machine. Back in 1996, I wrote a metasearch engine that queried 16 other search engines (http://www.conman.org/people/spc/refs/search/search.hp1.html).
Four years later Google turned down a $3 billion offer from Yahoo, asking for 5.
AltaVista, for example, ran on a couple of pretty beefy Alpha servers at the time.
There was an early and obvious insight that fast and simple search would win, but ads at the time were gif banners and flash animation.
They tried adwords, and it worked.
The reason I’m prodding at this is because there are different ways in which someone can fail to understand the value of an idea. The value proposition for Google doesn’t seem far-fetched at all, but I could believe that investors simply didn’t believe PageRank was a good enough idea to displace then market leaders.
Furthermore it is my experience that people sometimes do not understand the value proposition of even simple things if those things are new, the value of the new must be demonstrated and often overwhelmingly.