Don't let that deter you.
It's exceptionally rare for startups to be killed by competitors — so rare that you can almost discount the possibility. So unless you discover a competitor with the sort of lock-in that would prevent users from choosing you, don't discard the idea.
A crowded market is actually a good sign, because it means both that there's demand and that none of the existing solutions are good enough.
A startup can't hope to enter a market that's obviously big and yet in which they have no competitors.
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