Have had experience interviewing, and exploring similar space.
My beliefs that I'm in the process of validating further:
-> Poor resume filtering (based on keywords and proxy credentials) reduces the size of the candidate pool - biased to those that have worked at brand name institution, or went to brand name school, which leaves out many talented folks.
-> Technical interviews are low accuracy predictors of competence, which means you have to up-weight previous experience & credentials to reduce risk of bad hire. If you do choose to open up doors to interview candidates from non-traditional backgrounds, due to the greater variance in competence, you have to spend more time interviewing before you make a hire, driving up the costs.
-> Companies are biased towards cheaper, low-risk interviewing. They want to get the talent to meet the business needs, as long as they can do the job and fit the culture ==> paying more to get the talent that they know has greater chance to deliver is totally worth it.
A bigger company has the advantage of having more data about their hiring process, which could lead to more systematic experimentation to improve hiring. They also have a brand that would attract more people - bigger company often correlates with stability, and market rate pay, which are also drawing factors. They also have less risk --> a bad hire, that can be identified relatively quickly and fired, hurts a bigger company less than smaller ones, and they have more money to throw around.
Hiring at startups is tough: Your low-risk talent pool has other, great from a financial perspective, opportunities. Your higher risk talent pool is expensive to validate competence for because industry standard approaches are low-accuracy signals.
Fix interview process to give a higher signal, which allows you to reduce weight on credentials and experience, which allows you to increase size of candidate pool (because you've reduced the risk and cost to validate).
There's a lot of talent in the world that doesn't fall into the low-risk bucket that everyone is competing for.