The thing about entrepreneurship is that you shouldn't allow yourself to be put into any boxes. I say fuck boxes. Instead you should always strive to create your own, bigger, better or just plain different boxes.
That's how you disrupt the status quo; by not accepting the labels that society, mainstream tech media and Paul Graham wants to impose on you.
I don't believe that failure really exists; it all depends on your definition of what success really is. For me, I can feel successful and happy as long as I'm making new mistakes, I'm learning and swinging for the fences.
But that's just my definition...
Whose definition of your startup / success / entrepreneurial journey really matters?
Only yours. I bet you are your biggest critic, but you are also inherently your biggest cheerleader.
Don't give up. Avoid labels. And never let others put you into a box. Know your passion and pursue that with all the gusto you can muster.
PS. I have nothing against Paul Graham (I have loads of respect instead ), Y Combinator (I would not have minded if I was clever enough to be the founder) or San Francisco (I love the place).