[throwawaybbqed]

Meh .. staff with PhDs are good for different things than those with Masters. If you are applying established methodology, you don't need PhDs on your team. For new things or things for which there is no established methods, PhDs are essential IMHO.

[sixtypoundhound]

I'd lead with a good business architect, honestly. Plus some scrappy masters-level street hackers who are willing to get their hands dirty.

Act one at a new business is rarely rocket science. Lots of low hanging fruit.