Original Hypothesis (H) as in Forlani and Mullins (2000, 2005)
H1. The greater the variability in predicted outcomes of a proposed new venture, the greater will be its perceived risk.
H2. The greater the magnitude of a proposed new venture’s largest potential loss, the greater will be its perceived risk.
H3. The greater the perceived risk of a proposed new venture, the less likely it will receive funding.
H4. The greater the anticipated venture returns of a proposed new venture, the more likely it will receive funding.
H5. The greater the risk propensity of the decision maker, the more likely he or she will be to invest in new ventures having higher levels of risk.