Not always true. I've worked with several older people who were willing to take a pay cut to get to work on something they where more interested in. Especially if they felt their existing career path had stalled out.

And experienced people will generate more value for the company than their salary. Having an inexperienced team is a great way to waste a lot of time. Having a good mix of experience levels is the best balance between wasted time and financial costs.

Sure. Still, you might not be able to afford their salary and they migth have different job security expectations. Not all start-ups live in VC lala-land.

Also, experienced people usually don't jump for your entry level dev position. They are changing jobs to advance their career. In a start-up, you might not even have the positions they are looking for.