[ivenkys]

My 2 cents.

Stop or continue really depends on two things (a) Who is your competitor ? (b) What market are you in ?

From your description your competitor albeit well funded is not established and therefore has exactly the same problem as you - getting customers, this is good. However, if your competitor is someone with deep "links" with Google or Apple or MS or one of the other companies with cash, quit now. Check the background of the founders of the competitor. What sort of track record do they have ? Are they ex-senior members of google, yahoo et all ?

What market you are in matters a lot, is it a market that provides opportunities for specialisation - Continue, are you already in a niche-area of a large market - Stop. Can the market be expanded ? Is there an already existing market with clear pain points or are you building a new one ?

Summary: Weigh your options carefully based on the competitor and the market. All the best.