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Wow, Search is big!

ReachLocal raises huge money with a $55m round.  Huge credit to the management team there, who I have heard are great people.  They have built $250m in value in 3 years.  That’s great!

Having said that, this is a big number.  Now, for these investors to get 10x returns, you need to build a multi-billion dollar business.  Can a business worth $1 billion really be built that is just helping small businesses bid on terms for Google?  Would Google just shut them out or aggressively go head to head?

Of course, Google could just buy them for $1 billion and not even notice the dilution.

Still, seems like a big number!

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