Venture capital (VC) is widely recognised as a powerful engine that can drive a nation’s innovation, job creation, knowledge economy and economic growth. Governments around the world, such as Germany, Australia, Japan, Israel, Chile, Taiwan, and Singapore, have tried to develop their VC markets. Empirical studies show that many government-led programmes have not been particularly successful. It is in this context that China’s efforts stand out: over three decades, China has created the world’s second largest VC market in terms of annual VC investment, after the United States (US). Against the more moderate results achieved elsewhere, China’s success is especially prominent considering that it has surpassed the US in terms of the amount of VC investments raised by start-ups and number of unicorns, despite the relative youth of its market.