This is precisely why Silicon Valley is past peak. When it was becoming great, Silicon Valley technologists were the network. You like computers and technology? So do I, let's see what we can do for each other. Or just hang out. Often the best "networking" isn't called that; it's just people with shared interests getting together.
The fact that there's such a thing as a "Paypal Mafia" is a fucking disgrace. Same with the influence of Stanford or MIT connections; nothing against these schools, but after 5 years the signal is gone and it shouldn't matter.
What made Silicon Valley great is that there was an era when common interests were enough to get you in. That's what gave it its initial power: a lot of smart people who wanted each other to succeed.
Now it's dominated by a bunch of horrid little good-ole-boy clubs that don't even respect technology.