I am aware of why C# isn't popular among startups. It is sad because C# is a great language that has amazing tooling support. It runs everywhere - Xamarin for apps, ASP.NET for servers, Blazor for browsers, and it is getting only better, and I cannot imagine how awesome it would be if other companies helped Microsoft. But I can only dream.
It's a problem with the entire design type, which has been shown throughout computing history to not work that well.
And why use C# when the Java ecosystem is pretty much the same tooling wise? C# feels like a 1.2x better Java, which isn't enough.
Also Sun really bombed their Java Gaming initiative (who remembers that JavaONE?) with C# becoming the C++'s complement in most studios.
Even basic stuff like switching to the native L&F theme on startup.
C# isn't that popular from a silicon valley engineering perspective, since the first class C# implementation wasn't open source until very recently. Yes mono has always be OSS, but it has also been a second class citizen too.