True. But what really happens during hiring is that one's degree / company brand name works quite well.
Plus, some people are too good at fluffing. I have interviewed a few product managers from Flipkart and all I can tell you is that none of them deserved the salary they were getting. But given lack of talent in new tech plus areas like product management/marketing, companies really have very little choice.
And to add to that, startups have been really mediocre at solving meaningful problems. Most of them are short term driven - everyone is in a loop, you see.