The biggest part of the problem is that startups aren't ONE company. There's no centralized Startup Hiring authority and there's no centralized Startup Database. Undergrads have to find them to work at them, and that's a pain in the butt.

Second problem is that startups can't waste a lot of time training kids right out of school. They need talented, seasoned, battle hardened developers right out of the gate, because there are going to be a lot of late nights ahead. There's nothing wrong with letting the kids cut their teeth somewhere big and stable right out of school.

...says the undergraduate who works for a startup.