Part of the reason the number of applications isn't that much higher than it was the first time is that we've changed our approach to founders. Initially we pitched YC as a substitute for a summer job for students. Then we realized that we wanted people more committed than that-- that it was actually bad to fund people still in school, in fact, because it's so easy for them to give up.

We will fund people still in school. (The founders of Weebly were.) But they have to be serious about starting a company.