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Could you define cool? Even in a mobile first approach, the back-end must provide data to its clients and Java make things really easy. It seems to me that people are trying to give their opinion without knowing Java ecosystem. Prejudice blocks a real discussion.

By "not cool", I mean, it's just not the "in" thing.

I have no prejudice against Java. I did Java development for several years and hold the language in high regard. The question, though, was about why Java is not prevalent among startups, not whether it was a capable language or not. I think the reason is that the younger generation tends to gravitate toward more newer and more cutting edge languages rather than older, more mature languages.