TechCrunch reported today that he had resigned and was closing a $1 million round in funding for the venture.

But, so far, no one’s saying what it is.

Let’s hope it turns out better than Digg has.

Because although Rose has had luck as a Web celebrity, calling yourself a “Digg founder” ain’t what it used to be, especially since his stint last year as interim CEO presided over a hugely unpopular launch that the company has been extracting itself from ever since.

Rose said he currently serves on Digg’s board. Sources said he didn’t actually “resign” from Digg, though, but rather pulled back after handing over the CEO role to outside hire Matt Williams. Last year, Rose called serving as interim Digg CEO a “nightmare” that “I would never wish on my worst enemy.”

While Rose would clearly rather be in the spotlight for his own success, he has been able to string together an impressive portfolio for an angel investor, with companies like Ngmoco, Twitter and Zynga. In addition to continuing to appear on Diggnation, Rose also recently launched a video show and newsletter called Foundation.

Update: Williams commented,

When I took over as CEO of Digg 6 months ago, Kevin’s role changed to that of Founder and Board member and nothing has changed since then. Thanks for all the positive comments we’ve been seeing, we’re excited about our direction as well.

The voluble entrepreneur and investor, who made his fortune off Web video during the first Internet boom, is dabbling in it again: He has put money into Revision3, the Web video studio/network best known as the home of Diggnation.

The investment was part of a small round of funding Revision3 raised last year, which it hasn’t disclosed until now.

That wouldn’t be that noteworthy, except that Cuban, again and again, has argued that ever-rising expectations for Web video were overblown, and that the technology wouldn’t displace TV. Which happens to be where Cuban is betting heavily, via his HDNet network.

A very brief summary of his argument:  Internet infrastructure can’t support TV-scale viewing; Web advertising can’t support TV-scale programming; people like TV.

And some representative blog posts where he make his case: The Great Internet Video Lie; Why Do Internet People Think Content People Are Stupid?;  The Future of TV Is…TV.

And here’s a representative counter-argument: Cable TV Is Screwd. It was written two years ago, by Cuban’s new partner, Revision3 CEO Jim Louderback.

So what gives? Is Cuban finally backing down? Not at all, the billionaire says. He’s merely investing in a potential source of content for his TV network.

The dollars he’s putting into Revision3 will give him what amounts to a first look on the video site’s programming, and the chance to turn some of it into TV shows.

“I think Jim can make some money from this. I don’t throw money away,” Cuban says via email. “But this investment really confirms my position on web video. While Revision3 will make some money on the web, the real money is [in] TV. And I wanted HDNet to have the option to be that outlet.”

Louderback, for his part, seems fine with a less than total endorsement of his industry–he’s the one highlighting Cuban’s investment. “I like to think that we’re doing some pretty innovative stuff, and [the investment] gives him a broader visibility into that space”, he says.

And since Revision3 won’t say how much money Cuban invested in the company, or the total size of the round–Louderback will only say that it was “relatively immaterial” for his company–it’s impossible to gauge what any of this really means from the outside.

In related can’t-really-judge-what-this-means news: Revision3 says its revenue, which it won’t disclose, grew 80 percent last year, and that the company turned a profit in Q4 of 2010. Louderback defines profitable in this instance as “EBIDTA-profitable,” and says his company should be “solidly in the black” by the middle of this year.

Last month, Web video studio/distributor Revision3 said the plummeting economy had caused it to cut staff and stop making and distributing some of its shows. Today, the company has a different message it wants to get out: Things are great!

The company, which is best known as a side project of Digg masterminds Kevin Rose and Jay Adelson, has put out a press release that is largely information-free. It dutifully lists the company’s accomplishments: six million show views per month, 60 ad partners, 140 million “minutes of engagement” per month, etc.

The one metric the company really should be boasting about isn’t included in the release: Revision3 will have tripled its revenues, to $3 million, by the end of 2008, a person familiar with the company tells me. Even better, ad sales ticked up significantly in the fourth quarter, even as the Web ad market began sputtering. Revision3 is on track to book more than $1 million in the last three months of 2008, I’m told.

Those results alone won’t be enough to keep Revision3 afloat: Web video remains a novelty for many advertisers, and the stuff that Revision3 makes–podcasts designed to be downloaded and watched on your PC or iPhone later on–are particularly challenging for advertisers to get their heads around.

A marketer who pays for an ad impression on Hulu, for instance, can be reasonably sure that someone actually watched it. That’s because the joint venture between GE’s NBC (GE) and News Corp.’s (NWS) Fox only offers up video for on-demand streaming, and doesn’t allow you to fast-forward past ads. But if you download an episode of Diggnation, the company’s flagship show, from Apple’s (AAPL) iTunes, there’s no guarantee you’ll actually see Rose and co-host Alex Albrecht endorse something called Brain Toniq.

But so far, at least, the pitch seems to be working. Here’s an example of what Revision3 advertisers are actually buying–a typical example of Diggnation, in which Rose and Albrecht sit on a couch, drink beer and talk about nerd things they like (Twitter) and things they don’t (Star Wars games).