Nearshore software development model works great for startups.
A startup is a company that has not reached Product Market Fit yet. It is basic to a startup's survival to be able to hire a software development team they can afford and that can work with them throughout these iterative loops until they define their business.
When the product finds Product Market Fit and starts generating money is when things become interesting because customer expectations increase. The Product will also start facing other kinds of problems and you will have real data of users to work with. This is also a great scenario for nearshore software development because the tasks you need will be more defined and specific and the value you receive will also increase.