[larrys]

"YC only takes the top 3% of startups."

This is exactly how legends are built in the media. YC takes 3% of startups that apply, not "3% of startups". This is the same as when they say it is harder to get into Techstars then to get into Harvard.

See this:

http://www.forbes.com/sites/nicoleperlroth/2011/08/24/the-mo...

Figures like that ultimately don't mean much anyway other than creating a appearance of scarcity. It is well know for example that colleges try to increase the application rate to game the acceptance %. Nobody has access to all the companies applying to YC in the 97%, (do they?).

Edit: To judge the quality (if possible) of the applicant pool.

Edit2: I don't mean to imply that YC tries to game applications. Only that numbers get thrown around without any vetting.