If they hire someone who already has an H1B working at another company they only have to perform a transfer, which is processed as a lottery-exempt new application i.e. same salary and credential and experience requirements as a new application but no need to go through the lottery. Most startups likely aren't going to hire someone fresh out of school or straight from another country (hence needing a new, lottery H1B). They will prefer someone who is local and has some experience.
> Plus, the application is just beyond what most startups are going to have the time to do.
H1B transfers take 15 days if premium processed, which is an additional fee of ~$1500. That's well within the budget of your average VC-funded startup. The transfer also adds an extra 2 weeks to an H1B candidate's start date over a domestic candidate (because no candidate is going to give 2-week notice at their current job until the transfer is approved) but it's not an insurmountable issue.
It's true that super-early stage startups (< 20 employees) may still not bother with this extra bureaucracy. But there I think it's because at that size the founders' and early employees' professional networks provide a sufficiently healthy pipeline of candidates, so they'd rather keep working and shipping than deal with immigration lawyers. On the other hand if someone on the founding team isn't a citizen/permanent resident, they'd still do it (eg. Laks Srini at Zenefits).
Plus it usually takes 2-3 years to know if someone isn't going to get the H1B lottery during their OPT which is a longer time horizon than most startups are concerned with anyways.
I think most startups simply hire who they view as the most qualified person regardless of immigration status.
Source: Have a startup that hires software developers.
The problem with using sweeping statements like "anyone who can..." is that one example is enough to disprove you. There'll be Who's Hiring thread in a couple of days, watch how many young startups say no new H1Bs on that.
Your OPT case is only true when hiring a student on F1
We don't have to wait - we can look at the one from last month: https://news.ycombinator.com/item?id=15384262
I did a Ctrl+F and nothing came up for "H1B" and the only thing that came up for "citizen" was a job posting for the US government itself.
Edit: I had to get to page3, but: https://news.ycombinator.com/item?id=15391862
https://news.ycombinator.com/item?id=15386201
(Though I believe the second one is some team specific thing, I know that at least AWS sponsor H1Bs for fresh grads).
Then on p5: https://news.ycombinator.com/item?id=15384311
(I was confident about this because I was job hunting about a year ago, and was exclusively looking at companies under 50 people. Most of them were fine with H1B transfer, but explicitly said no new applications.)