Using the sample of venture capital exit data in China between 1997 and 2005,this article studies the factors which may affect venture capital returns.We find that the average return is 158% and the average investment period is 1.97 years.The returns negatively correlate with investment durations,and positively correlated with investment stages and sizes,while the returns do not correlate with industry,investor type and exit strategies.Moreover,the returns are higher when the investment is later,and the projects in Shanghai and Shenzhen provide higher returns.Furthermore some political suggestions are provided.