Maybe, in many markets the total value to capture, while likely heading up over time, is unlikely to double because there are 2 top quality startups in the space rather than one.
So often it could be the case that the competition to dominate a particular market will just be more intense.
Of course in some spaces the quality of product/ service from more startups might alter the capital distribution of customers to create a much larger pie.
The number of good startups will grow with the number of overall startups.