The Small and Medium Sized High -tech Enterprises in China have achieved r apid growth over the past years and have played an important part in China' s national economy.However,diffic ulties in financing have turned out to be the main obstacles to the development of these enterprise s.The small and medium sized high -tech enterprises are in bad need of venture capital support.Venture capi tal industry in China has begun to op-erate,but a lot to be improved.This p aper analyzes the development proce ss and main problems in the growth of venture capital industry at present ,makes some policy measures to impro ve the venture capital system,and re c-ommended a process for venture capital investing in high -tech businesse s in order to accelerate the developm ent of the small and medium sized high -tech enterprises.