That was my question. The little i understood of ValTown seemed like a sustainable, small business. No need for it to get huge. As long as it doesn't require hosting cheaper than customers would be wiling to pay. Given the type of services you could probably multi-tenant the boxes quite heavily and predictably (lots of crons you understand, etc).
I didn't look at it closely, but everything i saw looked like a great small business. VC money seems confusing, i must be missing a lot.