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Ask HN: What to do when you discover a YC-backed competitor?

11 points by sharonpaul ↗ HN
Hi there, I've been working on a startup for quite some time, mainly at the validation state. Have recently decided to pivot (eeks, cliche term) after gathering feedback.

was really excited about the new direction, until I just learnt of a YC-backed competitor doing almost the asme thing. The only thing that's different is the branding and why we are doing it.

Was even hoping to apply to YC in a year's time after gaining traction. Has anyone faced such a problem before? Ignore and to carry on as planned?

12 comments

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byoung2
If it's something you're passionate about and that people really want and are willing to pay for, press ahead. Who knows, maybe you can execute better, or maybe the competition will pivot to something else. Even if they don't, there is always room for competition in any industry, and sometimes that is what spurs innovation.
tansey
A few points to remember:

* Lots of YC companies fail.

* Even more pivot from the idea they're working on now.

* Competitors are not always a bad thing. They help validate your idea and push you to iterate faster.

* Better-funded competitors will always be there, whether it's a YC company, a TS company, a Sequoia-backed company, or Google.

* There is usually room for more than one company in a space.

Just carry on.

thanasisp
Absolutely!

Don't even hesitate for a moment. Measure and respect your competitor, copy his strong points, study his weaknesses!

But in any condition do not loose your pace or enthusiasm. After all, being a YC backed company does not equal world domination.

The game is on!

sharonpaul
Was initially planning to take part in YC as a route to internationlize this project. Am from tiny Singapore, and hence the need to get out of our country for this to scale.

Worth a short applying for the round 2013 still?

ig1
I'm assuming you mean 2012, but yes.

YC has funded competitors in the past. Notably with email CRM addons where YC basically funded all the major players in the market (Etacts, Xobni and Rapportive)

seejay
Keep swinging!

one of the best examples, reddit Vs Digg. I'm not saying either of them are better than the other. But they both were started at the same time period and they both became successful.

[dead] b1ind
I think its safe to say that Reddit won that war.
[dead] b1ind
Just look at tumblr vs posterous(yc). Tumblr is winning because of:

1. better design 2. usability 3. great social layer

Essentially, they're both simple blogging platforms. It shouldn't matter if you're competitor is YC-backed, deal with them the same way you would deal with other competitors: out-think, out-work, and out-innovate them.

staunch
If they're dominating, and you're just getting started, maybe you should do something else.

If you're both early then it's mostly irrelevant that they exist.

wavephorm
There are many examples of YC backed companies getting whooped by their competitors. In fact there are only a couple categories where a YC company is the leader.
sharonpaul
thanks everyone! your insights helped a lot, and i'll be continuing the project :)