Building the same product as a YC startup, should I be worried?

Im over half way through building my MVP. I just found a YC (W24) funded startup that does the same thing and grew to 3M in rev in 6 months from launch. Should I be worried or should I use this as market validation? They are focusing on a different side of the market than I am but also providing a lot of the same functionality. They are a small team and still an early stage startup but have a lot of sucess and funding for their stage.