We've recently invested in 4-5 companies that are very similar to startups in this latest batch of YC companies...and it has happened before. Sometimes it make

We've recently invested in 4-5 companies that are very similar to startups in this latest batch of YC companies...and it has happened before. Sometimes it makes me queasy, but I usually take it as a confirmation signal that there is a market opening. Competition should not discourage you unless you're in a tiny market. And there are very few 'tiny' markets. Unless you have a more compelling idea, I would "stick it out and try to kick ass" ;-) Best of luck to you.