Earlier quoted context omitted.
It doesn't matter so long as they didn't violate any licenses. Where the product starts and where it ends will be two totally different endpoints that are sure to diverge once they find their domain and business model.
If you are so inept that copying someone else's codebase wholesale is what makes you a viable company, then perhaps you aren't worthy of investing in. Unless, the investor is just trying to fund the most ruthless, least ethical, win-at-all-costs type of people, which as I type this seems like a sad but unsurprising move.
This was probably the hardest realization I came to in business/startup world.
That's precisely what most investors (at least the ones with any large amount of money) look for. They could care less if your product is good, or if you developed it ethically, or if you treat employees or customers well.
Most would invest in the next Oracle and sleep like babies if given the chance to get in early - even if they had a crystal ball to see how badly it will impact the industry and social fabric as a whole down the road 20 years later.
Especially VCs. They exist to make money. Full stop. The rest is marketing fluff for the naive masses.