(Extracted from www.casnocha.com: 16 lessons learnt working for Reid Hoffman.)
Its tempting to recruit the stranger with the stellar CV rather than the acquaintance with the above-average CV.
Rather find someone that is a proven A-player and can hit the ground running, right?
Startup success is about speed. Speed is about trust. You can’t afford to be looking over your shoulder to make sure no one is about to stab you in the back.
Loyalty is more important than competence. Loyalty lets you move fast. Moving fast increases your odds of success.
Assuming your friend can learn quickly, go with loyalty ahead of competence.