Abstract: This article, which is based on the systematic review and comment of existing research results of venture capital's efficiency at home and abroad, made empirical analysis of venture capitalists' influence on R&D of a business and on its ability to promote value creation, and of whether VC’s join would increase the ability of R&D to promote value creation. What is more, it also made a comparison between those two effects, in order to get a more clear and accurate comprehension of the role of venture capitalists in the development of pioneering enterprises. By means of empirical approach, it researches all the existing data of listed companies on GEM, and finds that companies which are hold by venture capitalists, compared to those hold by other kinds of institutional investors, are much more interested in innovation investments. In addition, VCs' proportions of shareholding are positively correlated to the companies R&D expends. At the same time, although the efficiency of innovation input really need to be enhanced when aims to make enterprise value appreciation, VC shareholders would have positive influence on increment of value of the enterprises, which is made by innovation; and both would then positively influenced by the increase of VCs' proportions of shareholding.

Key words: venture capital, innovation investment, value-adding