This is one way that the wealth elite prevent people from starting businesses. They attract people with ideas who want to start a business, winnow them down to a few who are "chosen ones" who then get the money. the rest are essentially starved of startup funds, and go nowhere. Ideas are often appropriated and the young minds are easily molded and directed into the types of things that the elites want to work on, while simultaneously begin directed away from areas the elite consider too dangerous.
It is a distorted monopoly control of innovation where the Communist party cadre keeps a tight reign on creativity. The Soviet Union did the exact same thing with writers, artists, moviemakers and theater.
Before the few big VC projects like Y Combinator stepped in, innovation was a free for all and new ideas were either self funded and grew slowly and organically, or they got seed money from LOCAL wealthy people who were diverse and acting alone.
Y Combinator and friends want to find workable businesses, flood them with cash, and get them quickly to DOMINANCE in their market, because they believe in the Communist philosophy that only monopoly control of all aspects of life is the right way to go.
Everything that is a monopoly is supporting Communist control of society and restrictions of freedom. If you can extrapolate, anything that encourages these types of monopoly drives society to central control of a centrally planned economy ruled by the Communist party elite who, like Stalin with his taste for raping young girls, are above the law.