This is why the Bay Area is a horrible region for a lot of startups, especially ones that plan on pursing monetization early. Few startups can afford inflated Bay Area salaries with minimal VC funding. Unless you're really capitalizing big-time on the VC culture of the Valley, it's a bad place to be for a startup--and this is illustration of that.
For comparison, a $60k/year starting salary is the norm in most American cities (and it provides exactly the same lifestyle that $100k does in Silicon Valley).
I would argue that the intangibles of basing in SV are probably worth more than the inflated salaries are. After all, you really shouldn't be hiring anyway until you're funded.
For comparison, a $60k/year starting salary is the norm in most American cities (and it provides exactly the same lifestyle that $100k does in Silicon Valley).