Startups have to create a different strategy for hiring and compensating key resources, irrespective of their level of seniority.
First criteria should be competence and energy level and not necessary experience level. A startup will require every individual to stretch beyond his or her comfort zone. Therefore this is a far more important factor than experience of business. A relevant industry experience of a mature organization may not necessarily fit in a young and start up organization.
The compensation therefore has to be more on creating a stake rather than high fixed cost. Giving them independence to run the business with high risk-high gain combination on compensation creates stake.Once this model is used, there is enough money for sustenance level in the organization.