As great as YC and Paul Graham's writings are, and as much as they are helping create a extraordinary startup community, there will always be many ways to success in a tech startup. Take 37signals, for example - they suggest that you get no outside funding, and make your startup on the side (while working or going to school). They also suggest that location and distance is completely irrelevant in the internet age. If I remember correctly, worked on their initial products from across the world.

Now, statistically speaking, YC companies probably has a higher success rate than the 37signals model, but your life is not a statistic. Focus on making something people want.