For heaven's sake, think a little. This is an empirical discussion of hiring heuristics that result in a certain system. It's not just networking (generally used to refer to development of professional connections, though yes people use it to refer to smoking weed together or engaging in the same sport) and the poster didn't say nepotism either. It is certainly favoritism (hiring people you already know and like without necessarily casting a wider net) and it's clear that there are structural effects from it that develop on gender and race lines (you're in the men's hockey team together, you're in a fraternity or sorority, you're in an ethnic club).

What sriram_sun said is entirely factual, and a lot of us get left out of the networks for various reasons. That's also just factual. The fact that folks here are all "oh you're just jealous, you're calling it nepotism" -- nah, it's just facts, and there is no need to get emotional about it. There is nothing inherently wrong about hiring people you know -- like any move in a game, it has knock-on effects. If you'd like to help broaden networks, just do it. And for those who feel defensive about it, consider the phrase "hit dogs holler".

It's a razor thin line and we can't really tell unless the roommates were horribly unqualified for the job.

But I'd probably hire in a similar way for a startup. Not because of nepotism, but because I know the kinds of peope I want to hire are massively productive and good at their respective fields, I'd be honored if they could do that work under me.

(note: no real plan to do this and half my friends aren't in my specific domain regardless).

I'm a bit perplexed by the notion that it's somehow a problem when the founder hires his friends and former colleagues when starting a company with just 6 employees.

The "room mate" network is pretty exclusionary and self selecting.