The startups I've worked at hire everyone who's good. Quotas and headcounts exist at companies like Intel, but VC funded startups can't possibly hire quickly enough to spend all their investment.
Really? I always see funded startups limit their hiring to their investment and because it just isn't practical.
If you are a 10 person startup, there are likely thousands of people in silicon valley who could work for you, and hundreds of thousands who could work remotely. You're not going to hire them all - it would take too long, you would run out of money, and you would have your equity diluted into nothing.