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>- startups that are rejected and fail, but would have thrived had they been accepted

PG has specifically stated that this is not a bug (it's a feature). The goal of YC is not to take mediocre or bad startup teams and turn them into wins, but to take the winners and turn them into Super-Winners(Dropbox).

As far as maximizing YC's impact, I think Dropbox maximizes it more than small wins from teams that would have lost had they not been in YC.



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