I totally understand if he feels this way..his own opinion.
My own opinion is this, as a founder running our startup (catering marketplace for businesses and individuals) for over 2 and half years. Still working with No Angel or VC money, just friends and family funds. With our sweat and blood we tested the market from "Uber" style, events to iterating to various verticals..
The painful truth, it hurts when you can't pull out your best solutions to problems because of low funds, it leads to poor execution most times.. competition is fierce and business means war.
Most founders would have given up before year one with no VC money. I see no harm in YC's cheque size and scaling. Heck.. Covid 19 just dug out some new interesting problems in need of urgent solutions.
My Opinion. Cheers HN.