So you're not in the US? Then why would you need to compete with US startups on salary? If you can do even half of that you should be able to get great talent in most places. Competing on the work environment, benefits, equity etc should be much easier too.

Not only, but it's a huge motivator. But if the project idea itself doesn't convince, then it's hard to convince with perks other than compensation.

If you cannot offer liquid money offer above average equity, as mentioned in my previous comment.