How is this different from any other company though? It happens a lot where I live. You either know the higher ups through some sort of connection(school, event, family, etc) became friends and that's it you landed on a nice position.
I'd love to say it's only prone in startups but it's been plaguing companies forever, especially small-medium sized ones where it's easier because the owner is probably hoping to find able hands, perhaps the huge ones have slightly better processes to counter this type of scenario.
It's not different, all companies are like this. That doesn't make it any better though...
Success is mostly based upon who you know and being at the right place at the right time. That's why it's disingenuous to suggest you can "teach" how to be successful with blog posts like this -- you can't teach someone how to be born into the right family so they can attend the right school and meet the right people.
I'd love to say it's only prone in startups but it's been plaguing companies forever, especially small-medium sized ones where it's easier because the owner is probably hoping to find able hands, perhaps the huge ones have slightly better processes to counter this type of scenario.