A bit one sided
I don’t really agree with your perspective though I do empathize with start ups for the amount of effort that goes into hiring.
As much as entrepreneurship is glorified and celebrated the ones who choose to become the foot soldiers of this march don’t really find that much of recognition.
A job is not just an equivalent of the compensation offered but a combination of multiple factors such as the role, the product/problem statement the team is working on, location, the team etc. If start up founders want their employees to look at the job beyond the horizons of money and then they need to stop questioning their loyalty purely on the dimensions of CTC.
Start ups want the best of the people to join them and the ones who are on the other side aren’t looking for anything sub-standard. So, given the rules of capitalism on which start ups thrive, they should be willing to accept this as a pitfall of open market.
Having been on both sides of the end I won’t say that this is causing any problem, in fact it’s good that hiring market has become so competitive and as they say, competition only makes things better for the market.