I've worked one of these $20k SV internships, so I'd like to give my two cents. I worked for a large startup that hired around ~100 interns - not a Google or Microsoft by any means.
There is a relative meritocracy for these positions. All of my fellow interns were exceptional. But, this was not much of a meritocracy. All of the interns went to Ivy-caliber schools. Many of them went to expensive preparatory schools (and pointed it out). I find it hard to believe that any of these interns had financial constraints.
Does this mean SV isn't a meritocracy? No. But, there is a undeniable bias towards Ivy League schools where the students are predominately wealthy.
There is a relative meritocracy for these positions. All of my fellow interns were exceptional. But, this was not much of a meritocracy. All of the interns went to Ivy-caliber schools. Many of them went to expensive preparatory schools (and pointed it out). I find it hard to believe that any of these interns had financial constraints.
Does this mean SV isn't a meritocracy? No. But, there is a undeniable bias towards Ivy League schools where the students are predominately wealthy.