So who would you prefer to work with:
a) The smartest guys you know?
b) The average guys you know?
c) The average guys you know, but tell everyone how great they are?
d) The below average guys you know?
e) Other?
People who are great, do so not by telling other people they're great (although sometimes you need to have a little PR), but by demonstrating their great:
1. You want to work with them
2. Work diligently to make the team, product, and company better
3. Are smart
4. Are productive
A perfect blend of: talent, hardwork, and ambition.
I've noticed a trend of acceptable mediocrity here on HN. Any mention of wanting to work with people that are exceptional, results in near universally negative feedback.
As a startup, your first hires are CRITICAL. They set the tone of your company, and will carry a lot of the burden alongside the founders. You can't just settle for "good enough to get the job done." You're not just hiring for today, but for the next 2-5 years.
Seed your company with great people, and keep raising the bar.
Myself personally, I'm not great, so I want to work with people who are better than I am, not worse.