Do you want to work with above average people, or do you want to work with great people?
Most projects are not that difficult and uber-tech as founders like to think. Reliable average programmer that generates maintainable code in predictable speed might end up as useful and less annoying then bored genius.
That was annoying thing company I knew did. Candidates were selected for their love of algorithms and detailed knowledge of frameworks etc. Anyone else was labeled "weak".
It just so happened that the work required only surface knowledge. What they really needed was someone willing to do "boring" programming work responsibly and without supervision.
So, hired geniuses were running away faster then you can say bye and those who stayed half assed work.
This requires a certain amount of intellectual humility; as founders would have to acknowledge that it is likely they are not changing the world (they're coloring by number using last week's cool framework), and they don't need the best engineers.
It's gotten to the point where anyone who proclaims to be an expert in something is immediately suspect to me. The smartest guys I know never have to say it, and truly never brandish their skillset like some kind of gaudy prize. That kind of attitude makes it very easy to be undermined.
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.
You can be great as an above average developer, and you can be less than great as an excellent developer.
I'd prefer to measure the complete package.