Understaffed Beats Wrongstaffed

Maybe I'm just nitpicking here, but at a hiring rate of 0.08%, you'd have to accept resumes from ~1250 candidates, not 127. I think the OP meant 0.8% (1/127 == ~0.008), which I don't think is a terribly low number, given that he was hiring for a reasonably well-known startup.

I've been involved in a number of searches for developers at much less visible or "sexy" shops, and would say from my experience that screening 80-100 interviews for every position is pretty normal.

This also applies when choosing partners. Being a lone founder is vastly better than throwing together a group that is all friction and no teamwork.