I work at a bootstrapped startup with two engineers, only one full time (me). I'm paid well below my market rate, but I stick around because the CEO treats me with respect and gives me the flexibility that I need to be productive and happy.
When you don't have money, you can compensate in other ways, like autonomy and work-life balance. You may not get the best of the best, but you'll get loyal employees who appreciate the flexibility you give them.
Alternatively you can try to build a company on the backs of people who you have to micromanage and who will be gone in a year (and if not, only stick around because they have no other options). I'll leave it to you to decide which is more likely to succeed.
