While it is most certainly a competitive atmosphere right now for starting up a search engine company, one cannot deny that the venture capitalists are in a spending mood.

The Internet search sector may be dominated by corporate heavyweights such as Google Inc., but that hasn’t stopped the sector from emerging as a hotbed of entrepreneurial activity.

“It’s a great time (to start a search-related company), although it is very competitive,” said Michael Yang, co-founder of a California-based startup that runs a research site for shoppers called Become.com.

The sector is also increasingly diverse. In addition to so-called “vertical” search engines – meaning those such as Become.com that specialize in specific subject matter – efforts are under way to refine search technologies for mobile devices, as well as to help businesses wring more bang-for-the-buck from search-related advertising. [Read the rest]

[tags]venture-capital,corporate heavyweights,mobile devices,bang-for-the-buck[/tags]