I'd say that it sounds like a bunch of A-list investors just co-signed and approved your business plan. That'd be a clear signal to me to keep pushing and turn the heat up! It's just validation; that other company isn't eating your lunch yet. Unless you let them!
To put it another way: If you had zero well-funded competitors, you might have to second-guess moving forward. This is the opposite; this is a great thing. You just have to focus on becoming the Google to their Lycos.
And the fact that they just got funding means that they don't have too much of a head start on you. If you already have an MVP, you should be able to catch up fairly quickly, as fundraising should hopefully be much more productive now that the space has been validated.
Just a side note though: you might want to consider slipping something extra into your slide deck/whatever to mention the competition in the space and how you plan on adding value over your competitor's product. Good luck!
To put it another way: If you had zero well-funded competitors, you might have to second-guess moving forward. This is the opposite; this is a great thing. You just have to focus on becoming the Google to their Lycos.