It's really a message to those of us retail investors buying the IPO or post IPO shares of YC companies that need to be aware of the track record w.r.t. an investment. Most of the gains have been extracted already and future post IPO growth has already been priced in.
It also does suggests that YC was perhaps a beneficiary of easy monetary conditions that lifted valuation.
Perhaps its less clear given the current state of things whether their companies are good for long term earnings performance for long term ownership by retail investors.
What needed correcting is getting corrected. What was correct is staying correct.
The rise in interest rates means that companies that have been producing their own cash can fund growth initiatives internally. Companies who were funding growth initiatives using outside capital (debt, VC investment) are now going to be paying 10%+ to do so.