The idea that VC-funded startups should pay the same cash salaries as big companies is a sign of hot markets. It happened in 1999 as well. In reality, startups should pay less because they give equity, allow more freedom and creation, and have less stupid corporate rules. It's not for everyone, but that's the tradeoff.
Generally when you're borrowing from VCs who expect a 30-50% return on their equity, it's a bad idea to pay too much cash. (It's like paying salaries on a credit card - the lender may be willing, but they still want to get paid back) When it does become equal, it's a sign of froth. To get the benefits of a startup without any downside runs up against, "There's no such thing as a free lunch."
Generally when you're borrowing from VCs who expect a 30-50% return on their equity, it's a bad idea to pay too much cash. (It's like paying salaries on a credit card - the lender may be willing, but they still want to get paid back) When it does become equal, it's a sign of froth. To get the benefits of a startup without any downside runs up against, "There's no such thing as a free lunch."