The situation

We interviewed a lot of target users about the problem we are trying to solve with our software, and it turned out that yes it is a big problem for them. But during market research we found dozens of competitors doing almost the same thing, it's just a lot of people don't know about them. These solutions are somewhat successful or very successful.

What should we do?

a) Continue building the software that is kind of the same as the competitors, make the UX better and market it hardcore. Try to find a different angle or approach.

b) Abandon the solution, because it is very likely we will fail miserably.

We fear that we wont raise money, or successfully exit the company if we attempt to make our product.

Do you know any examples of this situation where a company succeeded?