In "a tough business" Vator Box takes a look at ScanScout, Adify and Pixsy: Citigroup Internet analyst Mark Mahaney joins our usual crew to help us rate pitches from ScanScout, Pixsy and Adify. Pixsy is a video and image search startup that also sells white-label search platforms to networks and sites that don´t want to spend the resources to build their own.
One of the company´s main value propositions is that it does image search better than Google, and image search is one of the fastest-growing search categories, according to Pixsy CEO Chase Norlin.
But as Mahaney points out, how much capex [capital expenditure] spending will be acquired to build the server farms needed to scale the business?
A more likely path for Pixsy is the same one taken by Truveo, the video search provider that was acquired by AOL. Advice to Pixsy -- "find a big media company who loves what you do and squeeze a term sheet out of them". Vator.tv (the part about Pixsy starts at 12:10 and ends at 15:40).
