I think the difficulties of communication, specially during incubation time and demo day, justify this qualifying as a bad indication. A great deal of YC value lies in the office hours and everyone has some bias to listen what they want to listen on a feedback session and to create excuses as "they didn't quite get my idea, that is why they are pointing these errors". When mentors actually don't understand them and vice-versa, this may totally nullify a feedback session. Networking on Demo Day (and subsequently fundraising meetings) also is seriously jeopardized. How to look formidable when you can't even sound "right".
But on the other hand, this shows a way of doing business that SV still suffers from: they are too west centered. These companies build things to US market and, sometimes, Europe. South America usually follow-up as we (i am brazilian) are very connected to US culture. But even we have our thriving copycat companies. But if you take Russia and China into account, then they often have juggernauts versions of SV companies (not regular copycats, but dominant companies) that the original ones just can't easily beat when they try.
I don't think there is causality here, just guessing that they are both reflects of a particular trace of SV companies: US is the Total Adressable Market. So, if you don't completely fit with the US culture, you will likely fail as a startup CEO in SV (for pragmatic reasons, not any "racist" bias or anything like that). At the same time, these companies usually take a little too long time to expand internationally.
This a diferentiation that 500startups have that, in my opinion, will pay large benefits to them eventually.
But on the other hand, this shows a way of doing business that SV still suffers from: they are too west centered. These companies build things to US market and, sometimes, Europe. South America usually follow-up as we (i am brazilian) are very connected to US culture. But even we have our thriving copycat companies. But if you take Russia and China into account, then they often have juggernauts versions of SV companies (not regular copycats, but dominant companies) that the original ones just can't easily beat when they try.
I don't think there is causality here, just guessing that they are both reflects of a particular trace of SV companies: US is the Total Adressable Market. So, if you don't completely fit with the US culture, you will likely fail as a startup CEO in SV (for pragmatic reasons, not any "racist" bias or anything like that). At the same time, these companies usually take a little too long time to expand internationally.
This a diferentiation that 500startups have that, in my opinion, will pay large benefits to them eventually.