This is a corollary to the first point above. Startups need to do more with less, so hiring is done only when urgently required. And since more startups are at the forefront of technology, there is usually a shortage of the most skilled people because everyone is trying to hire them. On the other hand, if you have the skills that are in demand, you'll be wooed and pursued. As I write this (July 2011), Google is paying starting salaries of over $100,000 to recent grads with Ruby on Rails experience. Revenge of the Nerds, indeed.