Big N isn't a startup. The risk to reward ratio between RSUs and first stage equity/options is very different. The environment is very different. Everything is different. I guess you could try to compare compensation between the two, but it's not a true comparison.
I worked for a startup that got funded in that ballpark. There were seven of us. We sat at a couple folding tables at an incubator for six months or so, and used a vacant space (no power, no heat) to build and test our hardware. We eventually moved into a bigger incubator with more office and lab space, then our own office.
We weren't in SF. Location matters less every day, and you have to make sure the higher costs associated with various locations make sense. It's pretty amazing where you can find a machine shop that can make prototypes for you if you need it. Cloud service providers will give startups $10k/mo or so in free time to start with to get you hooked, so you need very little infrastructure.
It is possible to run for a while without a huge initial round if you've already confirmed there's a market, have built relationships with potential customers, and have a team who understands what they're getting into, and is motivated to delivering the first few milestones, whatever they are.