Well, it could be the case that companies that get into YC are already "good enough" to already have higher valuations in the first place. I suspect there's a

Well, it could be the case that companies that get into YC are already "good enough" to already have higher valuations in the first place. I suspect there's a bit of groupthink involved though, creating a feedback loop. (Well, of course there is, VC investment decisions and valuations are based on signaling from other investors!) So, building your company, maybe not massively worse, but yes, probably at least somewhat worse. It's a tough Valley out there.