On the plus side, think of it as a type of market validation. A bunch of investors think your idea is solid. On the minus side, try to avoid focusing too much

On the plus side, think of it as a type of market validation. A bunch of investors think your idea is solid. On the minus side, try to avoid focusing too much on competing and not enough on listening to the market directly and reasoning from first principles. It's good to watch this competitor and learn from them, paying particular attention to their weaknesses. But it's not good to fixate on them and direct your attention to trying to "beat" the other guy instead of giving the market what it wants. The market is your customer, not your competitor. It's also good to try to do things a little bit differently so your product doesn't end up being a mere imitation -- if you do that, you'll probably lose.