Competitive differentiator question

Hi, How do you answer the competitive differentiator question super early in a startup's life? I am not in a crowded space but it is unlikely that someone else in history has already tried the idea. I have talked to a previous cofounder who failed in the same space and they claim at least that Covid and a large manufacturer deal tanked them. There was no demand problem and no economics problem as long as I execute well. Another competitor (incumbent) is much larger and has become a $1B+ enterprise. But they are clearly running on obsolete technology - which I am building. But their ability to deploy is much more than obviously a startup.