you only experienced one startup failure..i experienced three:

1. deNovisMedicalSystems in 2004 ..we outsourced the whole development to india and development stopped mainly because we could never reach the people on the opposite side of the planet..their delivery schedule was a sliding adventure..1 week turned to 2..2 weeks turned to a month and 1 month turned to 2..at the end of 1 year there were no deliverables
   2)TraverseTechnologies in 2007 ..we had one client a RealEstate company out of San Antonio and we spent every dollar they gave us..this was a failure of sales/marketing to promote a great one of a kind Real Estate search engine
   3)Podzinger in 2008..we had cbssports for our one of a kind find text in MP3 videos service..ton of work went into this product by the brightest people on the planet..in the end there was a cost-savings outsource effort to russians and that made the situation worse..we had no idea what they were doing or why so effectively control over the codebase was lost
2. Takeaway:
   1)DONT buy the sportscar, vaca-condos ..if your startup fails you will lose both

2)bank the money as much as possible..if the startup goes belly up you will need that money in the bank for friviloties like food, utilities and mortgage

3)even though you can save a nickel an hour with outsource..dont..losing control of the codebase can put your organisation in a death spiral when someone on the opposite side of the planet is calling the shots and telling you what the delivery schedule is.