There's no one answer to this question - it really depends on the individual startup and what their specific needs are. However, some startups do outsource product development initially, in order to get their product off the ground quickly and efficiently. This can be a great strategy if the startup has a clear vision for their product, and knows exactly what they want it to do and how they want it to look.
Outsourcing can also be a good way to save money, since you don't have to hire in-house developers and pay them a salary. You can simply contract a development team to build your product, and then pay them for their services. This can be a great way to get your product built quickly and efficiently, without breaking the bank.
Of course, there are also some downsides to outsourcing product development. For one, it can be difficult to maintain control over the project when you're not the one working on it directly. It's important to make sure that you have a good communication system in place so that you can stay up-to-date on the progress of the project and give input when necessary. Additionally, it can be challenging to build a good working relationship with an outsourced team, since you're not in the same office and may not have the same day-to-day interactions.
Overall, there are pros and cons to outsourcing product development. It really depends on the individual startup and what their specific needs are. If you're considering outsourcing, it's important to do your research and weigh the pros and cons to see if it's the right decision for you.