Originally posted on VentureBeat:

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The market is flooded with addictive mobile apps that generate millions of downloads but not millions (or even thousands) of dollars.

Where does this leave mobile-focused investors?

Skeptical, to say the least. “Millions of users does not translate into millions of dollars in revenue,” said Jenn Wei, an investor at Silicon Valley-based Blumberg Capital. In New York, FirstMark Capital’s Matt Turck shares similar concerns. He refers to mobile apps and games as a “trickier group” to fund because they have traditionally been so focused on user acquisition.

According to Sidecar cofounder Jahan Khanna, that tech entrepreneurs build apps that people think are cool — but not worth paying for — compounds the problem. “While these seem aligned, they often are not,” he said, and as a result, mobile startups often hemorrhage cash.

He continued, “The original Harlem Shake video has over 40 million views on YouTube. What does that make that dance worth?”

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