I think that essentially their pitch was that they would become
the development platform for building apps. If they had considerably grown the number of apps on their platform, and gotten lots of positive developer buzz, they would have easily gotten more funding, even if they weren't making any money yet.
The problem, though, is that building a new platform is really, really, really hard, and they didn't succeed. One of the biggest problems that I see that people underestimate is that most (not all, but most) great native mobile app engineers _don't_ want to build cross-platform apps. They tend to be "platform partisans", either loving Apple or Android, but not usually both. They always want to become experts in the latest and greatest platform technology. Perhaps more importantly, Apple and Google aren't particularly interested in cross-platform technology either. If you want to be featured in the App or Play Stores, you've got to have a native app that uses the latest iOS or Android features.
I see lots and lots of cross-platform mobile solutions on HN, but I rarely see people considering the incentives of both Apple and Google, and the mobile developers, when it comes to evaluating these solutions.