Let go of your egos and focus on building. There are more than enough problems to be solved in the world, your ego only slows the process down. Don’t worry about your image, celebrity, and title but more about your contribution and the team.
Silicon Valley can be a place of premature hype. Once a company gets funding the valley makes it seem like they won the World Series. When I tell people our idea I always hear back “isn’t so and so startup is doing something like this?”
In lieu of the X millions of dollar they got invested, the real question should be “Are your friends or coworkers really using it?” Just because they have the budget build a rocket doesn’t mean it will fly. In fact, you should be glad to have a well funded “competitor”. It means your idea is worthy of being funded. Also, you can observe their expensive experiments which may save you a lot of time.
If the problem you are trying to solve is serious enough, other startups in the same field shouldn’t really be your competitors. There will be enough room for for each company to have a niche. As long as you can solve a real problem with sustainable execution, someone will find your company valuable.
So the next time you see a similar company get X millions on Tech Crunch, don’t panic. Embrace them and learn from their experiences. Most importantly, have a laser like focus on the problem you are trying to solve.