"But X already exists!" isn't even really a barrier for startups on the rocket-ship trajectory (look in e.g. email marketing), to say nothing of companies which are not. Your friendly local dentist is not devastated that someone else has filled cavities before; why should you be.
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(You'll note that the people who are most likely to say "X is uninteresting because it is functionally equivalent to an offering that already exists" are a) artisans who b) have a business structured functionally identical to thousands of other providers to c) sell *money*.)
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"Who's that a reference to?" Venture capitalists, whose primary customers are limited partners (LPs = sources of the money), and to whom they can express at florid length how their firm with a very similar product to many others is actually quite differentiated, thank you.
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