This is the problem with overfunded startups. You have engineering managers in charge who are too inexperienced to really have a good instinct for talent. So

This is the problem with overfunded startups. You have engineering managers in charge who are too inexperienced to really have a good instinct for talent. So they just throw all of their investor's capital at a very narrow range of candidates - basically people who remind them of themselves. This will sort itself out. Companies like Google and Facebook will continue to bloat themselves up, just like almost every single conglomerate in the history of business. Their products quality will start to deteriorate because their cultures are more interested in status signifiers than they are in great work.