How about this: 1. The YC founder-investors probably lost 30% or so of their wealth in the recent stock market decline (maybe they did better, maybe they did w

How about this: 1. The YC founder-investors probably lost 30% or so of their wealth in the recent stock market decline (maybe they did better, maybe they did worse, but they probably feel poorer). 2. At the same time, YC has continued to improve their deal flow and develop connections in Silicon Valley, so they are turning down better applications than they used to. 3. Other VC firms are continuing to notice YC and compete. If YC can remain the top seed firm because of its founders' fame and network, YC will be poised to dominate seed investment for many years, as lower-tier seed firms spur demand but have their most promising prospects sniped by a YC now able to fund and advise a larger pool of companies. Just like top-tier VCs like Sequoia get access to better companies while lower-tier VCs lose money. Whether it's a good idea really depends on the average quality of the deals YC has been turning down. If YC rejects are increasingly good, expanding the funding pool and accepting more startups makes sense.