I've already maxed out all my credit cards, cashed out my 401k, and sold almost all my assets.
The bank won't give any loans as they look at my personal credit.
That's what gamblers say as well, right before they lose all of their savings, their house, and their kids' college funds...
Take the job with the friend, even if it means giving up on the startup. If the market you're targeting is as fast-moving as you say it is, you won't have the capacity to keep up with your competitors as a broke one-man shop.
You'll be able to launch another startup in the future, in a much better funding position than your current startup.
He'll know you're doing it just for your startup but at the same time he'll get your expertise and knowledge at least on a part time basis for a discount.