Tell HN: I didn't get a job due to a failed startup on my resume 17 years ago
I doubt that the recruiter who told you "we would never hire people with a failed startup on their resume" is actually speaking true company policy.
"Thanks HN. You lied to me about the true cost of a failed startup." Are you kidding? Surely, you aren't ready to blame those trying to help you for one bad encounter with a knucklehead recruiter with a bad attitude.