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Venture capital market is a subset of the general capital market which carries a higher level of risk. The general capital market is a place for government and matured large and medium-sized enterprises to raise funds which includes securities market, private equity financing and project financing. On the other hand, the venture capital market is mainly used to fund the development of new high-tech enterprises. From the perspective of market opening and the development stage of the participating enterprises, the venture capital market contains three sub markets, which are the informal private capital market (informal Business Angel), the venture capital market (Venture) and the market for small and medium high growth enterprises (Small Stock Market). Venture capital market is a concept with strict connotation and extension. It is an important part of the capital market, and is different from the general capital market with its own system of motion. It is called the venture capital market because of the higher risk nature as compared to general capital market. The risk is originated from incomplete and asymmetric market information which is determined by the characteristics of these new high-tech enterprises. The risk is different from the risk of derivative products caused by the complexity in design and the amplification of market leverage in the general capital market, the risk of venture capital market is mainly arisen from the uncertainty of the financial performance of these high-tech enterprises.