At least you got to meet the Y team and the other cool Y applicants.
Keep working on your startup and best wishes!
> The argument was that this current company is already "well established" and might already have momentum to expand into the area we proposed.
Makes you wonder why they dragged you out there then!
I would guess that they liked the applicants (based on the applications) and wanted to see if they had any other ideas that they would be interested in pursuing.
Or they didn't realize just how directly the new company would compete with their existing portfolio company.
Except that for this round pg said you don't need an idea in order to apply. That implies that they'll help decide on an idea if they like the founders, so an idea conflict should be resolvable by switching to something else pg et al. have in mind.
Let me just say this: "the idea doesn't matter" is a statement that we found to be highly, highly unreliable. Don't expect to get funded without a solid idea that is different. I'll elaborate on this later, but trust me on this one.
Most investors do not invest in competing or significantly overlapping companies. There are a few exceptions (Ron Conway), but it's rare enough that they feel like making that clear on every possible occasion.
Paul, Jessica, and Trevor are really cool people though. As were the other teams present. We saw some good ideas and smart people. Without a doubt the next batch of startups will be very impressive. I wish all of those teams who were offered funding the best of luck!