Venture capital investment in China is influenced by factors like government intervention, exit opportunities, human capital, new inventions, and transport infrastructure. The study shows that these factors play a significant role in shaping the venture capital industry in China. Additionally, international venture capital and domestic institutional factors are crucial in the development of the venture capital market in China. The research helps us understand how venture capital is distributed and operated in China, providing insights for entrepreneurs and policymakers in planning venture capital activities in large developing economies.