If you want to see more YC-style funding and traditional VC is at capacity, can you (big VC) not take an active role by allocating some of your excess resources into YC-style firms? That could help these firms (and ultimately big VC) add more startups to their portfolios.
Of course, this is assuming they are honest about having to reluctantly turn down high quality applicants each year. I'm sure the relatively small number of mentors would become a bottle neck at this level, though.
Of course, this is assuming they are honest about having to reluctantly turn down high quality applicants each year. I'm sure the relatively small number of mentors would become a bottle neck at this level, though.