Kevin Rose’s, Milk Inc, is a needle in a haystack.

Kevin Rose, for those who don’t know is the founder of news site Digg.com. In its glory days Digg was all the hype in the media, but lately has been facing inevitable death. Even Kevin isn’t interested in it anymore.

Aside from all that, he has started a new company called Milk. Milk basically aims to create a few mobile projects and hope that one or two will strike it large. This is like buying 4-6 lottery tickets, for investors, who put money in Milk. At this point, investors just invest because it’s something Kevin Rose is doing, but is it justifiable? Yes and No.

In Silicon Valley, if you try to secure funding for this type of company, there is a 99.9% chance it won’t happen, unless you are well known like Kevin. Although he has never sold Digg for millions (almost in ‘08 to Google for $200MM doesn’t count), investors put money into Kevin’s potential. It’s a risk, but perhaps meaningful for them. Any more of a risk than putting $41MM in Color? Doubt it. In fact, I think this is way less of a risk, because they will be creating more than one project with less capital most likely. However if they all turn out like Pownce, it really won’t be worth anything for anyone.

If you are NOT a Silicon Valley prodigy, just about any tech investor is going to say, well “you need to focus on one concept and execute at a large scale before we put a dime into your company.”

Kevin is good at identifying companies that could be successful, as he is an investor in Twitter, Zynga, Foursquare, DailyBooth and Square, but I’m not sure about his ability to innovate enough to actually create the next “big” mobile app. He created Revision3, and it’s still out there, but it hasn’t been bought out or anything yet on it’s 6th year running. Most VC’s I know look for a 5-7 year exit max.

The good thing about Milk, as Kevin has mentioned is that the won’t be creating yet another photo sharing app on the iOS platform. If you look at Kevin’s history with Digg, it was cool and everything, but it never really changed from the early days, to more recent days. In fact, users hated when they tried to be like Twitter.

Kevin might be able to create something cool, but what is to say it won’t die away as a fad?