I would check out the writings of 37Signals (now Basecamp)/RoR founder David Heinemeier Hansson, who advocates bootstrapping for not-necessarily small markets.

His talk "How to unlearn your MBA" in particular was fantastic in providing a counterpoint to Silicon-valley style Startups: https://www.youtube.com/watch?v=MlhAkNWC1qo.

He directly comments on the YCombinator model at 53'57" (https://youtu.be/MlhAkNWC1qo?t=53m57s), but the whole thing is worth watching.