My cofounders and I have bootstrapped so far to get a hardcoded (doesn't connect with a server) iOS prototype for $10k from a local outsourced developer. We have no traction yet and are in need of funding, so we tried to raise $300k from angels but everybody said to come back when you raised a friends and family round. So reluctantly, we raised $100k in friends and family money. The plan was to hire some in house developers and get a small office with the money but now that is all out the window. Since 100k would be too little to hire anyone and get an office, I am guessing the only solution is to outsource this again to a bigger team and get some traction from what they develop. There is a team within a two hour radius of my home that has experience building this sort of application for iOS and Android and the head of the firm co-owns a separate business that would be a potential customer and has already provided great feedback on what we are trying to do.
Is outsourcing such a complex app and putting most of the friends and family money into one team a good idea? I know optimally it would be best to hire some people but we don't have the money and no angel will fund us yet. I have heard some horror stories about outsourcing a majority of your work but in this case it is a bit different since I would be able to visit the team frequently to check on the progress and communicate properly. In addition, the head developer can add his valuable feedback throughout the process as someone who could potentially buy the system.