EDIT: A bit more seriously, and to your argument in particular, that's where low cost of living comes in your favor. "Hmm, I could take $90k in Silicon Valley where I will have to be careful with my budget, or I could take $75k in St. Louis, where I will live comfortably"; why in the world would you accept a startup in the Valley (thus moving there) given that decision, all other factors being equal (they're not, but there are plenty in favor of St. Louis, as this article points out)?

You're showing yourself willing to move (a software dev willing to relocate will not be short of a job for long; heck, you could always later -look- to move to the Valley), and you'll be able to sock away funds for emergencies much more easily..

Worst case, the employee really needed the cash and used it for something else, but nobody could say that the startup didn't try to soften potential hard landings.