I thought about that as well. I think it may be defensiveness and anger - rather than a logical statement. Those feelings are natural, so I don't fault him - but at the same time, rejection is a part of startups at every turn and I think we have to get over it, and figure out how to use criticism constructively.

YC has always valued persistence - so I'm sad that he applied and wrote that, since he might have been able to get in the next time, and I think YC likely would have helped his ability to recruit and valuation, especially given the changing markets. But regardless, I always have respect for startup founders (esp after 3 years of hard work) - so we should all wish his team luck.