You're still taking significant risk if you get paid market or near-market rates when you start your company. You've put your name on the line, you've committed yourself to providing a product and running a company, with all the difficulties it entails.

I understand the impulse to have founders prove their commitment by living as paupers, but I just don't think it's a good way to judge the competence of an investment. I think there are other meters for passion that are more accurate than "Yes, I'm willing to take a 50-70% pay cut".