Elixir is highly regarded for startups due to its ability to support rapid iteration and scalability. With the Phoenix web framework, it offers a productive and transparent development environment. Elixir's standard library, OTP/concurrency tools, and the BEAM virtual machine provide robustness and scalability. The use of LiveView and LiveSvelte enhances frontend development, and the language's expressiveness keeps component sizes manageable. Despite a smaller talent pool for Elixir developers, the benefits make it a powerful choice for new ventures.