Presearch is raising funds through a Simple Agreement for Future Equity (SAFE) with a valuation cap of $15 million. The SAFE includes a 10% discount, providing early investors a potential advantage when the conversion occurs. This type of security offers investors the opportunity to convert their investment into equity at a future priced round, typically at a discount to the valuation cap.

For Presearch to provide a 10X return to investors, the company would need to achieve a valuation of approximately $150 million at exit. This would require significant growth in both user base and revenue. Given the current annual revenue of approximately $208k, Presearch would need to scale its revenue substantially to align with this target. For context, achieving a 10X return without accounting for dilution would necessitate substantial increases in revenue, potentially reaching annual figures in the range of $15 million or more.

The current revenue multiple based on the $15 million valuation cap stands at approximately 71.9x. This high multiple suggests that the deal may be overvalued, especially considering the company's early stage and current revenue figures. High revenue multiples can indicate that the valuation is optimistic, and investors should carefully consider the growth potential and associated risks.

In terms of exit potential, Presearch operates in a competitive market with established players, which could impact its ability to achieve a high valuation at exit. The company's success will depend on its ability to expand its user base, enhance its product offerings, and effectively monetize its platform. These factors will be critical in determining whether Presearch can deliver substantial returns to its investors.

The U.S. search engine market is overwhelmingly dominated by Google, which accounts for roughly 88–90% of all search queries. Bing (powered by Microsoft) holds the second position with around 6–7% share, followed by smaller players like Yahoo (about 2–3%) and DuckDuckGo (approximately 1–2%). In absolute terms, Americans conduct billions of searches per day, making search advertising one of the most lucrative digital markets (the global search ad market was estimated around $280 billion in 2024). Growth in the search market has remained robust despite high penetration—recent analysis showed that Google’s search volume actually grew over 20% in 2024, indicating that overall search activity is still increasing. Key trends in the U.S. include a rising interest in privacy and alternative search options (evidenced by DuckDuckGo’s steady user growth over the past decade) and the integration of AI into search (e.g., AI chat answers on Google and Bing). Nonetheless, Google’s strong default positions (e.g., on web browsers and mobile devices) and massive index infrastructure present a high barrier to entry for new competitors. For a challenger like Presearch, the U.S. market presents both a huge opportunity (even a small slice of this market is significant) and a significant challenge due to entrenched user habits.

Within the private search engine niche in the U.S., DuckDuckGo leads by a wide margin as the most recognized private search option. It handles on the order of 100 million searches a day, reflecting how some consumers have begun seeking out privacy-centric alternatives. Other niche players like Startpage, and newer ones like Brave Search, collectively make up a small but growing portion of searches. Presearch is a part of this niche segment. While its current share is very small, the niche itself is expanding as privacy concerns gain mainstream attention. Regulatory and public pressure on Big Tech (such as antitrust lawsuits against Google and growing awareness of data privacy) provide a tailwind for privacy-focused services. However, the niche faces challenges: these alternative search engines must deliver competitive search quality to retain users who are accustomed to Google’s relevance.

International Market Trends

Globally, search engine dynamics vary by region, though Google is dominant in most of the world outside a few notable exceptions. In Europe and most of Asia, Google typically commands over 90% of market share, similar to or even higher than in the U.S. Europe has shown particular interest in promoting competition in search—regulatory measures (like the EU’s search engine choice screens on Android devices) aim to give alternatives a better chance at gaining users. Privacy-oriented search usage in Europe has grown; DuckDuckGo, for example, has seen its largest market share gains in the U.S. and parts of Europe. Additionally, European-based private search engines (like Qwant in France or Ecosia in Germany, which focuses on eco-friendly initiatives) highlight regional efforts to cater to niche preferences. These international niche players, along with Presearch, are watching for opportunities as public sentiment shifts towards privacy and as governments enforce data protection laws (e.g., GDPR).

In certain countries, local search engines dominate instead of Google. For instance, Russia’s Yandex and China’s Baidu control their home markets due to language, cultural, and regulatory factors. While Presearch is a global platform accessible from anywhere, cracking those markets might require significant localization and facing strong incumbents with home advantage. On the other hand, Presearch’s decentralized approach could appeal in regions with distrust of foreign tech giants or where censorship is a concern. Internationally, an emerging trend is the interplay between search and artificial intelligence—tools like ChatGPT have started to provide search-like answers, and companies worldwide are exploring AI as both an opportunity and a threat to traditional search. For Presearch, international growth will likely follow overall global trends of increasing internet usage and privacy awareness. If it can tap into communities that value censorship resistance and anonymity, it might find pockets of enthusiastic users beyond the U.S. as well. Still, global expansion will pit Presearch against not just Google, but also established regional players, requiring astute strategies in each market.

Table: Search Engine Market Share (Feb 2025)

Colin Pape originally founded Presearch in 2017 and remains an active figure as the project’s evangelist and community lead. (While not part of day-to-day executive management after the 2023 restructuring, his vision of a decentralized search engine set the foundation.) Pape is an entrepreneur with experience in e-commerce and local search (he previously founded ShopCity). At Presearch, he focuses on community engagement and the decentralized governance model via the Presearch Foundation. His presence ensures that the original mission—to create a people-powered search alternative—stays at the heart of the company’s strategy.

Tim Enneking brings a strong background in finance and crypto. He is known for having founded and managed one of the world’s first private cryptocurrency funds, and has over 70 mergers & acquisitions deals (totaling more than $12 billion in value) under his belt in his investment career. As CEO of Presearch, Enneking provides strategic direction and leverages his capital markets experience. His leadership indicates Presearch’s intent to scale responsibly and navigate the intersection of tech and finance (he also serves as Managing Partner at a digital asset investment firm). Enneking joined the Presearch project to help turn the innovative idea into a sustainable, revenue-generating business.

However, the team lacks a dedicated full-time CEO, which could be critical for strategic leadership and driving the company's growth initiatives. Indeed, Enneking shares on Linkedin that he is a part-time CEO at Presearch but is a full-time Managing Partner at Psalion at the same-time. It is a string issue to not have a fully dedicated CEO for a youung company operating in such a crowded market.

Presearch operates in a competitive landscape with several notable competitors, including DuckDuckGo and Startpage. These companies also emphasize privacy in their search engine offerings, appealing to users concerned with data tracking and privacy.

DuckDuckGo is a well-established player in the privacy-focused search engine space. It has a larger user base and more extensive brand recognition compared to Presearch. DuckDuckGo provides a straightforward privacy experience, offering a clean interface without tracking user data. Its pricing model is ad-supported, similar to traditional search engines, but without personalized tracking.

Startpage, another competitor, focuses on privacy by proxy, allowing users to search the web without revealing personal information. It uses Google's search results but removes all trackers, providing a familiar search experience with enhanced privacy. Startpage is smaller in size compared to DuckDuckGo but has carved out a niche among privacy-conscious users.

Presearch differentiates itself through its decentralized architecture, a feature that sets it apart from both traditional and privacy-centric search engines. Its model of using community-run nodes ensures that no single entity can manipulate search results, offering a level of transparency and fairness not seen in centralized platforms. This technical approach appeals to users who are increasingly wary of surveillance and data profiling. However, Presearch's user base is smaller, and its product is still in the early stages of scaling.

The target customer demographics for Presearch include individuals and organizations that prioritize privacy and data security in their online activities. These users are typically tech-savvy, privacy-conscious, and may include professionals, activists, and businesses that require secure search solutions.

Compared to competitors like DuckDuckGo and Brave Search, Presearch's decentralized model represents a significant departure from the norm. While DuckDuckGo relies on a centralized index and Brave Search is building its own independent index, Presearch is focused on distributing control among its community. This structure may offer enhanced resistance to censorship and manipulation, providing a compelling alternative for privacy-conscious users, even as it faces the challenge of proving the efficacy of its innovative approach.

Overall, while Presearch's decentralized approach sets it apart in terms of privacy, its challenge lies in expanding its user base and competing with established players that offer similar privacy-focused benefits.

Presearch's recent performance reflects its early-stage status and the challenges associated with scaling a decentralized search engine. The company reported annual revenue of approximately $208k, with a notable increase from the prior year's revenue of $27k. This growth indicates some traction in its user base expansion and product adoption.

Financially, Presearch faces challenges with its cash flow. The most recent monthly burn rate is around $40k, with cash on hand totaling approximately $86k. This financial position suggests a limited runway, potentially requiring the company to secure additional funding soon to sustain operations and continue its growth efforts.

Presearch has demonstrated steady progress since its inception, with a growing user base that currently numbers around 150,000 monthly active users and approximately 13 million search impressions per month. While modest compared to industry giants, these figures indicate a dedicated community that values privacy and decentralization. The platform’s operational model relies on a network of community-run nodes, which not only supports the search infrastructure but also reinforces its decentralized ethos.

However, the current revenue figures suggest that monetization efforts need to be intensified to align with the company's growth objectives and valuation expectations.

Overall, Presearch's performance highlights both progress and areas needing improvement. While the company has demonstrated user growth and increased revenue, the financial metrics underscore the need for strategic initiatives to enhance monetization and secure additional capital to support ongoing operations.

Investing in Presearch presents several specific risks that potential investors should consider. One of the primary concerns is the high revenue multiple, which currently stands at approximately 71.9x. Such a high multiple can indicate that the company's valuation is optimistic relative to its current financial performance, potentially leading to reduced returns if growth expectations are not met.

Another significant risk is the company's low cash runway. With recent cash on hand reported at around $86k and a monthly burn rate of approximately $40k, Presearch has limited runway to sustain operations. This financial position suggests that the company may need to secure additional funding soon to continue its growth trajectory and achieve its objectives.

The presence of a part-time founder and a part-time CEO also introduces a level of risk. Part-time commitment from key leadership can impact the company's ability to execute its strategy effectively and respond swiftly to market changes or competitive pressures. This could hinder the company's overall performance and growth potential.

Additionally, the competitive landscape presents challenges. Presearch operates in a market with established players, which could affect its ability to capture and maintain market share. The company's ability to differentiate itself and attract users will be critical in navigating this competitive environment.

Lastly, the company's financial performance indicates a need for substantial growth to achieve the desired returns. With an annual revenue of approximately $208k, significant scaling is necessary to align with the valuation cap and deliver substantial returns to investors. These factors should be carefully weighed when considering an investment in Presearch.

Presearch has achieved several milestones that support a bullish outlook on its future. User traction is evident: the platform counts over 150,000 monthly active users and delivers around 13 million searches per month, reflecting a solid base of privacy-conscious users. The community’s enthusiasm is strong with more than 40,000 nodes run by volunteers supporting the network.

The company has also been innovative in its product development. In the past year it launched an AI-powered search assistant (Presearch GPT) and an ad-free subscription option, and even made its first acquisition (Scout Search) to expand into new niches. These moves show strategic vision and technical progress.

Financially, Presearch’s revenue has been rising quickly, reportedly tripling month-over-month after introducing new ad models, and the platform is on the cusp of profitability. Finally, partnerships and recognition lend credibility: Presearch was accepted into NVIDIA’s Inception program for AI startups, signaling validation of its technology. Overall, a dedicated user community, rapid product improvements, and positive revenue trends all paint an encouraging picture of Presearch’s momentum as it challenges the search industry incumbents.

Despite its progress, Presearch faces significant challenges that temper its outlook. Scaling beyond a niche has proven difficult – 150,000 users is a tiny fraction of internet searchers, and growth has been slow given the dominance of incumbent platforms.

It also grappled with user abuse: some users tried to game the system by automating searches to earn tokens, forcing Presearch to crack down with anti-spam measures and adjust token rewards. This highlights the fragility of a reward-driven model and requires constant vigilance. Dependence on bigger search engines for part of its results is another concern; until Presearch’s own index is fully built, it remains vulnerable to any changes or cut-offs by providers like Google or Bing.

Externally, competitive pressure is intense: DuckDuckGo and Brave command the privacy-search audience and have far greater resources. Finally, evolving regulations could pose hurdles – cryptocurrency rules could complicate the PRE token model, or compliance with new data/privacy laws could strain Presearch’s small team. These factors suggest that Presearch’s path to mainstream adoption is far from guaranteed, and the company must execute extremely well to overcome them.

Concerns about the team further contribute to the bearish outlook. The absence of a full-time CEO and expertise in marketing and sales could impede the company's strategic direction and monetization efforts. This lack of leadership and critical skills may affect Presearch's ability to execute its growth strategy effectively.

Financially, Presearch faces challenges with a high revenue multiple of 71.9x, indicating an optimistic valuation that may not align with its current financial performance. The company's limited cash runway and monthly burn rate of $40k raise concerns about its ability to sustain operations without securing additional funding soon. This financial pressure, coupled with the need for significant revenue growth to justify the valuation, underscores the financial risks associated with the company.

Presearch is a decentralized search engine focused on providing privacy by anonymizing user searches through a community-powered network. Its core customers are privacy-conscious individuals and organizations seeking alternatives to traditional search engines that track and collect data.

The company is raising funds through a SAFE with a $15 million valuation cap and a 10% discount. Despite a significant increase in revenue from $27k to $208k, the high revenue multiple of 71.9x suggests an optimistic valuation. The company's financial health is challenged by a monthly burn rate of $40k and cash reserves of $86k, indicating a limited runway.

The U.S. search engine market, valued at $60.9 billion and growing at 9.5% annually, offers substantial opportunities for Presearch. The company differentiates itself with a decentralized model, appealing to a niche segment of privacy-focused users. However, it faces competition from established players like DuckDuckGo and Startpage.

The team, led by Colin Pape, brings relevant community management experience but lacks a full-time CEO and expertise in marketing and sales. These gaps could impact strategic leadership and monetization efforts. Key risks include the high revenue multiple, limited cash runway, and part-time leadership, which could hinder growth.

On the bullish side, Presearch's alignment with privacy trends and its decentralized model present growth opportunities. The niche appeal and rising concern over data privacy could drive user adoption. Conversely, the bearish outlook highlights the challenges of scaling against established competitors, the need for strategic leadership, and financial constraints.

In conclusion, Presearch presents a mixed investment opportunity. While its unique approach and alignment with privacy trends offer potential, the high valuation, financial challenges, and competitive landscape pose significant risks. Investors should weigh these factors carefully when considering an investment in Presearch.