The compensation packages that tech companies are offering are outrageous. Coupled with the fact that money itself generates better returns than most startups.

The compensation packages that tech companies are offering are outrageous. Coupled with the fact that money itself generates better returns than most startups. Earning 10% a year over 10 years in some mutual fund is way better than investing in some startup that'll be around for likely less than two years. The housing market in the Bay Area is exploding. The salaries are going to have to keep up somewhat with that explosion. Why would I run a startup making 50k in Chicago, when I can make more than triple that(with RSUs, options, ESPP, healthcare, etc.) in the Bay Area? Also, keep in mind the ground beneath us is shifting constantly. Some web app written in Backbone yesterday may be slow as farts today. Objective-C, what's that? CSS? Use SASS. Chef? Use Docker. I mean use AWS. I mean use Digital Ocean. I know it seems meaningless what technologies you use, but these are the margins which people win by; the ability to be fast and scale quickly. Those are just two aspects of probably a million other really important aspects in running a successful startup. Again, though, you have to work normal hours(so as not burnout) while paying yourself enough to survive(forget the Bay Area). It's just not worth it to run a startup given the economics. Unless you can secure a shit ton of upfront investment. Which is unlikely unless the investor feels your startup idea could at least outperform some other investment vehicle like a mutual fund.