it depends too much on the situation. if you can solve the problem better or cheaper, why wouldn't you at least give it a go? at the very least, if you could release SOMEthing, it could be a portfolio booster or fodder for acquisition.
having said that, i had a startup in your situation, but i decided to ditch it. i couldn't compete with the new competition on price or initial quality. just working on the startup required overhead costs that were racking up and was too long from market to really use it as portfolio fodder.
having said that, i had a startup in your situation, but i decided to ditch it. i couldn't compete with the new competition on price or initial quality. just working on the startup required overhead costs that were racking up and was too long from market to really use it as portfolio fodder.