[canoebuilder]

If YC had invested $20k in every startup that applied, they'd still have caught Airbnb and Dropbox, and would be quite successful.

Some quick googling shows YC acceptance rate at ~3% let's call it 5%.

So that means 20x the capital expenditure in investments, that's going to put a damper on returns(provided the company picking prowess for a round was somewhere not to distant from optimal). Even if profitability could be theoretically maintained with these shifted numbers, it really couldn't.

The value proposition of YC is the exclusivity and the individual attention the partners can give the companies. With the exclusivity entirely gone and partner attention massively diminished YC would obviously not be YC as we know it.

It would not be anything as we know it. An institution that invests in everyone that applies? wtf is that? it doesn't exist. The closest thing might be the sub-prime mortgage bubble and we saw how that worked out.