I think what he means is, startups can't deal with the uncertainty and lead times the current H-1B system imposes.
Large companies just project how many openings they would have in October next year, hire appropriately, and park them in offshore offices if they didn't make the lottery. And they can afford the application fee too
I don't work for a startup, but I do work for a small business. The current system does not work for us because there is a lot of uncertainty in the application process. An auction system would actually be an improvement for us and many other small businesses.
So what? If big companies are economically more efficient, let them have the workers. Nobody should be forced to work for a poor company that can't pay up.
Large companies just project how many openings they would have in October next year, hire appropriately, and park them in offshore offices if they didn't make the lottery. And they can afford the application fee too