Abstract: The government venture capital guiding funds (GVCGFs) play an important role in China's venture capital market and shoulder important policy missions. In this paper，I use the issuance of provincial GVCGFs policy and GVCGFs's equity participation in venture capital enterprises(VCEs)as exogenous events and perform the difference-in differences (DID) test based on the data of venture investments from PEdata, to evaluate the guiding effects of GVCGFs from the market level and the enterprise level. This study finds that: (1) the issuance of the GVCGFs policy and GVCGFs' participation in venture capital market can significantly promote the fundraising and investment activities and expand the scale of venture capital market. (2) The GVCGFs fail to guide VCEs into earlier start-ups, but can guide them into technology-based enterprises. After distinguishing the ownership nature of VCEs, it is found that the guiding effects on non-state VCEs are generally better than that of state-owned VCEs. (3) The guiding effects of loss compensation are relatively the best, followed by the combination of loss compensation and revenue compensation, and the revenue compensation. The conclusions of this paper have enlightening significances for understanding the policy effects of the GVCGFs and optimizing the GVCGFs policy.