I heard a good analogy once talking about kids and nannies and how that relates to software products. Outsourcing your software development is like hiring a nanny to raise your children. Sure they will "care", but ultimately they are just kind of doing what you want them to do and babysitting your child, making sure they aren't getting in to trouble and often times just doing what is necessary.
However, when you raise your kids all day everyday you are a lot more invested. You inherently care more about what they watch on TV, what they eat, how they behave and would work harder to make sure they grow up to be an asset to society.
Outsourcing your development is like hiring a nanny.
Most VC firms and savvy investors know this. I think it would be much harder to get large rounds of funding from VC firms without a TEAM that was actually doing the work. However, you could easily raise funding from friends, family and probably convince some VC/angels.
But ultimately it does appear more risky to them.
You as the entrepreneur are willing to risk everything, to work for nothing to make sure this product is successful. However, your outsourced developer is willing to work hard until you run out of money. Then they aren't going to continue to work on your product.
Savvy VC's want people who have the capabilities to succeed from start to finish without being highly dependent on other factors. Such as the $ cost of outsourcing development. If you had a programmer on your team they would be much more dedicated to your cause and working 60 - 80 hours potentially to get a shippable product.
Outsourced vendors are working on lots of products for lots of people. They can definitely get you what you need, but there are a lot more factors / risk involved.