In your position, I’d take candidate 2. Displaying a reasonable level of competence and ability to work in a group is so much more crucial for a small company!
Which is also why there are usually multiple stages in an interview process, or at least, you pass a candidate to 3 or more team members to interview the candidate.
In my experience, it's hard to find good candidates, but not that hard to figure out which of the candidates will be a good fit, and a strong contributor, to a team. I've also hired mostly for team sizes of 10-20 developers, not 200.