We are wondering if we should apply to the next funding cycle because YC backed a competitor.
We have a different approach, go-to-market strategy and technology. So, if you look at the projects, we are really different while solving the same pain.
Just wondering/asking to not build up our hopes while waiting for an answer... we will apply anyway :)
Will you fund multiple startups working on the same idea?
Yes. If you fund as many companies as we do it's unavoidable you'll end up with some overlap. Even if you tried not to accept competing companies, you'd still get overlap because startups' ideas morph so much. The way we deal with it is that when two startups are working on related stuff, we don't talk to one about what the other's doing.
In practice it has not turned out to be a problem, because most big markets have room for several slightly different solutions, and it's unlikely that two startups would do precisely the same thing.
If I were you, I'd definitely apply. If you don't, then you've guaranteed yourself no funding or YC experience.
Thanks!