Ultimately, the real test of YC is in the quality of the startups that emerge from the program. I've been investing in YC companies since the second batch (W06), and I can easily say that the most recent batch was not only the largest ever, but also the best. Perhaps some of the social elements are lost with the size increases (not all of the founder know each other anymore), but the actual value of the program seems to be increasing due to our greater experience and the increased reach of our network. Quite often during office hours, founders will come to me with a seemingly difficult question and I can refer them to a YC company from an earlier batch that can help them out tremendously, sometimes just with advice, but often by providing the exact solution they need, or by becoming their first customer.

Obviously some portion of the gain in quality is due to YC attracting more high quality startups, but that is not the whole of it. I've watched these startups from Day 1 to Demo Day and the progress and improvements made are incredible.