Appreciate the insight! Makes the organizations like Dreamit Ventures and the university business incubators even more important in my eyes. We've got the developer talent, but more lacking in the xp of 'how startups work'.
I think internships/coop are more important; if you were e.g. a Waterloo student who spent 2y of 5y working for Facebook, Amazon, Google, or small great startups, you'd be in a good position to start a startup (or work for an early stage one) locally.