I've always thought that hiring in a startup is really like what the A's had to do in Moneyball - you don't have the advantages in terms of money, facilities, and even equity value of some of your much better funded competition for talent.
In that situation, you have really only three levers to pull - 1) give up more than you want (which is what I've seen too many people do); 2) sell the benefits of the startup life and your mission; and 3) find talent that can perform at a similar level that's undervalued.
The place that I've seen startup hiring really add value is when someone can be incredibly effective at #2 (which the author talks about) and they can develop a process that effectively hires for #3.
I've built my last couple of companies in the information security space and #3 is especially important, because there's a significant premium paid for high-value talent in our space. So, finding talent who can perform at an extremely high level whose "warts" don't matter has been a life-or-death matter for creating a company that can compete with those in the space that have more money (either through funding or scale).