After more than 20 years of development，Shenzhen’s venture capital industry has made remarkable achievements，ranking among the top three in China in terms of number of funds and scale，forming the “Shenzhen model” of collaborative development of entrepreneurship，innovation，and venture capital. However，in recent years，influenced by the new regulations on capital management and the strength of policy support，Shenzhen’s VC industry is facing a downward trend and has lagged behind Beijing and Shanghai in many aspects，with Jiangsu and Zhejiang are striving to catch up. To curb such a downward trend，on the one hand，the government should make full use of the policy benefits from Shenzhen being a pioneering model zone，increase the support to the industry in terms of decision making；on the other hand，venture capital institutions should continue to cultivate internal strength，and constantly improve their comprehensive strength，to work carefully on each step such as “fundraising，investment，management，exit”，and specially to strengthen post-investment management.