You're suggesting that greed (YC acting in their financial interests) is a bad thing. I don't think it is.
What makes investors successful, is the same thing that makes startups successful: Figuring out a pattern that works.
What YC is doing is betting that lots of small investments in hackepreneur types is better than what VCs and other early-stage investors are doing.
Also, I don't see much evidence of them "desperately trying to prove themselves". Looks like they're doing what any smart investment group should do: Trying to attract great entrepreneurs that they think they can help. If Paul and company were good at detecting and promoting talent in the life sciences sector, that's what they'd do. But they aren't, and so they don't.
This is really just a very early prediction on my part of where YC may be headed. I, personally, feel very little animosity towards YC or their current methods but have become more wary of their direction.
But yes, placing _too large_ of a priority on financial interests is always bad.
Finding a pattern that works is a good strategy, but what's their fitness function? This seems like an easy way to fall into the trap of only looking at the short term. With the volatility of software startups, I can't blame them too much for that.
It would serve their publicity greatly to show that they are still interested in improving the situation for us regular hackers and startup founders who are still at the bottom than appearing to just focus on their bottom line. This does not require lots of money or diving into unnecessarily risky investments.
What makes investors successful, is the same thing that makes startups successful: Figuring out a pattern that works.
What YC is doing is betting that lots of small investments in hackepreneur types is better than what VCs and other early-stage investors are doing.
Also, I don't see much evidence of them "desperately trying to prove themselves". Looks like they're doing what any smart investment group should do: Trying to attract great entrepreneurs that they think they can help. If Paul and company were good at detecting and promoting talent in the life sciences sector, that's what they'd do. But they aren't, and so they don't.