In a competitive talent market, artificial intelligence startups are turning to a reliable incentive to lure in top candidates: cash.

Instead of the typical structure of lower base pay with substantial equity packages, startups abundant in venture capital are doling out cash-heavy offers.

Some median base salaries are rising as a result.

For example, since 2022, the median base salary for software engineers at VC-backed startups has climbed from $160,000 to $200,000.

"Everyone wants to draw from a limited pool," says Michael Zhang, CEO of recruiting firm Candidate Labs.