There isn't an issue in creating a process to bring business models into new markets that are working. It's innovative in a way and that's cool.
But it's not cool how they at least used to operate: contact US startups that had traction, and tell them they wanted to invest and bring them into EU. Ask for info on the business. Then, clone it.
As a side note it actually isn't great to have such a short cycle between startup traction and inevitable cloning. It means small startups have to rely on things like (gasp) the patent system to protect themselves from paying upfront to work out a business model only to have someone come in immediately to fragment the market.
But it's not cool how they at least used to operate: contact US startups that had traction, and tell them they wanted to invest and bring them into EU. Ask for info on the business. Then, clone it.
As a side note it actually isn't great to have such a short cycle between startup traction and inevitable cloning. It means small startups have to rely on things like (gasp) the patent system to protect themselves from paying upfront to work out a business model only to have someone come in immediately to fragment the market.