A few years ago I did some pro bono work(not intentionally :-) for a couple of startups with domain experience but no software development experience. They had offshored their work to groups in India. The delivered products were marginally functional and not satisfactory. The had compounded the domain to developer communications problems with remote and cultural issues.
As a result, outsourcing to get the product done becomes a necessity and also easier than going around to find a good technical cofounder. It is also tempting since outsourcing seems cheaper and promises to get the product built.
The product just ends up not being good enough.
As a technical person in the startup industry, this is the #1 reason why I think startups fails.