I think you mean "It's not like a [software] startup now where it's mostly software." There are still hardware startups where people are populating boards and assembling products. The goal is to quickly get through that stage, but in the beginning, not everyone can afford the large order requirements for outsourced manufacturing.
It's not really necessary since even the big contract manufacturers will take pretty small orders, especially if there's an opportunity for a JDM/ODM project or a sustaining engineering contract in the future. The big guys also have the advantage of an economy of scale in dealing with component suppliers.
