Why the obsession with YC? Are you making lists of everyone that's ever turned you down or told you your idea won't fly? If you have a good idea, that'll turn into a long list...
"We label ourselves as a rejected company to show perseverance..."
I think it shows more of either: a) taking rejection too personally, or b) mean spirited demonstration that YC made a mistake by not funding you.
Either way, I don't think it's in any way "unethical"... just unwise. If you think YC made a mistake, and you want them to correct it, explain so in your application for the next round. If you've changed your mind, and don't want their support anymore, don't dwell on it and go on with your life.
It's definitely kind of neat to see companies that were turned down by YC and worked on their project anyway. If there were a list of them somewhere (similar to TechCrunch's deadpool, but a little more cheery) I'd love to read it.
I'm really curious what percentage of the submissions that get rejected go on to incorporate and put something out there.
"We label ourselves as a rejected company to show perseverance..."
I think it shows more of either: a) taking rejection too personally, or b) mean spirited demonstration that YC made a mistake by not funding you.
Either way, I don't think it's in any way "unethical"... just unwise. If you think YC made a mistake, and you want them to correct it, explain so in your application for the next round. If you've changed your mind, and don't want their support anymore, don't dwell on it and go on with your life.