Airbnb has a private valuation of 31 billion. Stripe has a private valuation of 20 billion. Dropbox has a public valuation (DBX) of 11 billion.
So the two most valuable companies account for about half the total value of all the YC companies. This is what a power law looks like!
So if you're building the kind of company that might be worth $100 million someday but won't ever be worth $100 billion, VCs and startup incubators might not be right for you, but just remember that a rejection from them doesn't necessarily mean you aren't on to something great.
This is just a power law thing and what would be expected with any large group of companies.
Success isn't linear or a bell curve, people seem to understand those two distributions rather well power law distributions rather poorly.
Yes, every group of companies is going to have some winners and some losers. But VCs and (even more so) accelerators operate in a space where the power law produces a curve that is especially steep. The vast majority of their investments will fail entirely. In order to make up for this, they need a few big winners in order to make an overall rate of return that their investors expect.
If I'm investing in large cap consumer goods company stocks, that curve is likely to look much less steep since, for example, a company like Unilever is unlikely to fail completely.