How To Answer : “What If The Big Competition Launches A Competitive Feature?”

“What If Google Launches The Same Feature As Yours?”
If you are running a startup (and in fund raising process), you must have been asked similar questions by investors (replace ‘Google’ with a big player in your category).
Everybody wants to know your defence against a big competition.It's a Dog-Cat Fight
During my interaction with founders, I find them answering the above question by using some variations of  the answers below:

1. We will build another feature to take on Google.
2. We are launching a better feature than Facebook – it ‘also does X’.
3. You see. We aren’t really competing with <BIGPLAYER>
4. This is too small for <BIGPLAYER> to launch.

Wrong!
The entire point of asking this question is not to gauge your technical capabilities – but the sole reason why investors ask these questions is to understand your vision behind the product/business.
Will your vision be impacted if the big competition launches a similar feature as yours?
Will you be damn scared / pissed ?

Imagine WhatsApp founder answering the above question : What if Apple/Blackberry launch a messaging feature?

So think before answering a question like this. Nobody ever won a war based on better features.