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Wanda approaches Celia, an analyst with a venture capital firm, about financing her new business venture, a company that will build electricity-generating windmills for residential use. What information should Celia have before deciding whether to fund Wanda's new business?

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A venture capital investor will invest his capital in a completely foreign company and in which these investors may or may not participate in the management. In the case of this venture capital firm that wishes to invest in a company that seeks to generate electricity through windmills, certain factors must be taken into account before investing.

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