Focus your product and your market. Take a read of everything Steve Blank has written about re-segmented markets.
What is your competitor weak in? Who are they ignoring? If they have millions in funding, in all likelihood they are targeting a large market, and probably ignoring many under-served ones.
Focus your product on a specific part of the market, both in features and how you market it. This also has the bonus that you may even be able to charge more for it (because it is specialised).
One of my products once faced a much more high-profile competitor, but we concentrated on enterprise (of what was thought to be a 'consumer'/mass-market app) and suspect we made even more profit than the competitor, who eventually changed what they were doing to copy us.
What is your competitor weak in? Who are they ignoring? If they have millions in funding, in all likelihood they are targeting a large market, and probably ignoring many under-served ones.
Focus your product on a specific part of the market, both in features and how you market it. This also has the bonus that you may even be able to charge more for it (because it is specialised).
One of my products once faced a much more high-profile competitor, but we concentrated on enterprise (of what was thought to be a 'consumer'/mass-market app) and suspect we made even more profit than the competitor, who eventually changed what they were doing to copy us.