This is exactly what I got from the article, and I totally agree with you that the headline is malformed. What it boils down to is that you should not be waiting for YC funding in order to begin work on your startup. Just work on it when you can, put something interesting together, grow it slowly (i.e. over a period of months instead of some huge launch), and go full-time when the opportunity presents itself.

I also have to agree with the others that the writer of the article kind of missed the point of the environment and guidance that YC provides. But then again, perhaps some of the applicants are only applying because they think they need the money.