Legal fees will drain your funds faster than anything else and you will probably not see any benefits from it
In fact it might be what makes your company fail (taking away the focus from building your business)
And yes, it might make your company fail. But that goes for a well funded competitor outright copying your product as well.
For the looks of it, in this case they should either not do it at all or just wait until they have enough money to do it
Even large companies wait for the right timing to sue
I know a company that had copied some images from Instacart. Instacart knew about it, but they waited until Uber acquired the company, then they sued Uber
Legal action is incredibly expensive and time consuming, especially in the US