http://dalethoughts.com/2012/03/entry-level-start-up-job-or-...
The combination of working at a big company while having a side project may outweigh the benefits of working at a start-up (at an entry-level gig).
At the entry level, the pay-cut you're taking by working at a start-up can be significant on a personal level. For someone who recently graduated college choosing between a 40k gig at a big company and a 35k gig at a start-up, that 5k will be much more significant than an engineer taking a pay cut from 85k - 65k.