[doublerebel]

Imitation is the sincerest form of flattery. This is just another proof point, you may even be able to use it to raise more capital.

Focus on your differentiator/USP and providing the best service to your customers. Any decent and obvious market has copycats and competitors.

[sheepscreek]

This. By pivoting to your business model, they are lending it validation and doing you a favour. It’s another reason for a VC to invest in your product vs theirs, as you have been at it longer.

If you really believe in yourself and your team, work hard to outcompete them. Like many others have said, unless there is something illegal about this, it is fair game.

[jacquesm]

They got rejected by YC. YC is not an investor in OPs business, they are however investors in that copycat.