While there are always extreme exceptions (asshole founders), would YC really turn down a profitable company that had an upstanding & scalable business model (i.e. not a service business, local business, or something porn/vice related)?
A VC may balk because the company can't absorb a million or more in capital, but YC is only invests roughly 20K.
EDIT: To answer my own question, I suppose if there were enough other applicants that were for whatever reason more promising, this could easily happen.
would YC really turn down a profitable company that had an upstanding & scalable business model
I think there's your answer...there are likely quite a few applicants with profitable companies (ramen or otherwise) but that aren't scalable, likely to attract outside investment, or suitable for acquisition.
