You're right that I didn't mean to communicate that, but it's a good point. I agree with you entirely that this is the big downside of YC and frankly all VC backed entrepreneurship. It is not the path of highest expected return for a founder. If you want a high expected return then a FAANG job or a bootstrapped SaaS product you can build yourself are good options. Some days that's what I wish I was doing to be honest.

I think a lot of VC backed founders aren't just in it because they want to get rich though. Sure, we all want that, but we're also all predisposed to irrationally believe that we're the exception. That trait (for better or worse) comes with implications, and many founders I speak to are simply compelled to try because it's hard, and it's theirs, and they're impatient.

I also very much agree with the sibling though. Getting rejected does not carry that much signal, because YC are wrong more than they're right. So just keep trying.

This is not a reason not to do Yc, but to not take the if rejection seriously

or still do it, but know that YC's incentives and yours are pointing in different directions. Sometimes taking their advice is good for both of you, sometimes it is only good for them.