This is either very poorly worded or unfairly incorrect. When have they not accepted black or Hispanic founders?! They might have attracted mostly white/Asian applicants, but they have never precluded any group.

"...they don't get the fact that founders can have a horrible application or even look horrible on paper."

Of course they get that fact. They often speak about how often they miss opportunities - it's not a charity and they can't pick every winner in advance. They don't just judge applicants on paper. They take a video, and they look at product traction and so on. They have people from all sorts of backgrounds showing it's not a cookie cutter process.

But if you do a bad job at presenting/explaining yourself and your idea, there's every chance you'll have similar struggles pitching to investors and customers.