Abstract
We clearly see that there are some unfavorable factors in the development of venture investment in China. First is the development of the market economy is not enough. China's development of the market economy was only 10 years and it still keep the process from the traditional planned economy transform to the market economy. As we know that the venture capital come into being in highly developed market economy it is disbennifit to pursue venture capital in China’s current situation. Second， the socialist legal system in China is not very perfect. The "Company Law" and the requirements of the venture capital have a gap. The third is the transformation of government functions is quite slow. Although after the 16th Party Congress the functions of the government to accelerate the pace of change but from a general view The change in the functions of government is still relatively slow a lot of things the government is not able to control the management well. The fourth is the credit institution-building seriously lagging behind. Venture capital to a large extent based on mutual trust the venture capital is no secured no collateral and must be fully in accordance with the contract. Finally is the influence of international factors. The current global venture capital is at low ebb and from past experience the venture capital in our country are mainly from two aspects: one is risk fund and the other one is the investment risk of the large multinational companies. Because the influence of international economy in current the funds from large enterprises drastically reduced.