Venture capital is a powerful engine which helps entrepreneurs create SB (small business) and innovators incubate hi-tech achievements. The implementation of Small Business Promotion Law will greatly benefit venture capital development in China. The author believes that venture capital process is to great extent decided and influenced by six factors which are divided into two layers-the basic factors layer and the structural factors layer. The former contains capital, technology and talents while the latter includes constitution, environment and channel. Strategic measures are put forward here to propel venture capital development against its reality and problems.