The study examines the effect of Chinese venture capital on firms’ growth based on survey and partly handcollected data on 211 private SMEs. The empirical results show that venture capital has significant positive impact on firms’ growth, but venture capital syndication has significant negative effect on firms’ growth. Venture capitals help integrate supply chain and improve the ability of management to promote private SMEs growth. And the mediating effect of venture capital’s shareholding ratio and foreign venture capital is significant in the effect of venture capital on firms’ growth. The conflicts between venture capital and entrepreneurs are inconspicuous while the relationship is harmonious.