Abstract: This paper investigates the moderating role of investment region between staging and venture capital firm’s (VCF) investment performance from the agency theory perspective. Using a sample of 991 entrepreneurial enterprises, which were funded by venture capital for the first time between 2000 and 2008, and the logit regression model, we find that when the VCFs invest in the local entrepreneurial enterprises (of the same province or of the same city with VCFs), the increase of the overall investment rounds has a significantly negative effect on their investment performance; However, when the VCFs invest in the entrepreneurial enterprises across their province or their city, the opposite is the case. These results imply that the relative yields and costs will change as the investment region varies, and VCFs need to consider their investment region as an important context factor in deciding whether or not to reduce the agency cost through the staging investment.