Because, by the definition yc uses, it's not a "startup". It's a "small business" - nothing wrong with that, autonomy is great (e.g. The "E-myth" (Entrepreneur

Because, by the definition yc uses, it's not a "startup". It's a "small business" - nothing wrong with that, autonomy is great (e.g. The "E-myth" (Entrepreneur) is that people start businesses to get rich, when most just don't want a boss), it's just that yc doesn't fund them.