Abstract: China has launched the entrepreneurship and innovation program. As one of the most important parts of the program, though once was one of the most heated topics over 20 years ago, the group of entrepreneurial mentors has been paid attention to again. The training of innovative entrepreneurs is inseparable from the entrepreneurial mentor. The entrepreneurial mentor is the key talent resource for the implementation of the entrepreneurship and innovation strategy in China. The construction of the entrepreneurial mentor team is also an important task in the implementation of the entrepreneurship and innovation strategy in China. It can be seen from CNKI that since 2004 Chinese researchers have started researches related to entrepreneurial mentors, the achievements were abundant and increased significantly in 2014 in which the entrepreneurship and innovation strategy was raised and carried out. With more and more policies concerning entrepreneurial mentors releasing, there is no doubt that the construction of entrepreneurial mentor teams has been highly valued by the Chinese government. However, these policies are released by various departments, such as the State Council, Ministry of Education, Ministry of Science and Technology, and Ministry of Industry and Information Technology. And policies from different departments hold different requirements towards entrepreneurial mentors. The question “what kind of characteristics do entrepreneurial mentors share in common” is urgently need to be answered. Academia has rich research outcomes on entrepreneurial mentors, and foreign researchers started earlier than domestic researchers. Though foreign researches on entrepreneurial mentors, which were based on mature markets under Western economic environment, were abundant, it cannot be applied into Chinese context. Although domestic scholars have already stepped into the field of entrepreneurial mentors, there are few related researches based on the characteristics of entrepreneurial mentors in the context of entrepreneurship and innovation strategy in China. Knowing what characteristics of entrepreneurial mentors are and how they put effects on entrepreneurs will help to build policies of entrepreneurial mentor team construction so as to make more excellent mentors come out. It is beneficial to the government to further strengthen the establishment of entrepreneurial mentor teams, improve the theoretical quality and practical ability of entrepreneurial mentors, and more effectively enhance the service effect of entrepreneurial mentors. Therefore, a systematic study of the characteristics of entrepreneurial mentors and their effects on entrepreneurs has important theoretical and practical significance. This paper investigated 31 managers from 28 crowd innovation spaces, and employs the Grounded Theory to analyze these original interview data. Based on those original interview data, this paper explored the entrepreneurial mentors’ characteristics under the entrepreneurship and innovation background. Furthermore, this paper investigated the effect entrepreneurial mentors’ characteristics on entrepreneurs according to the Self-determination Theory. The results show that the construction of entrepreneurial mentor is composed of expert characteristics, relatedness characteristics, and economy characteristics. And entrepreneurial mentor affects entrepreneur through entrepreneurial reserve, entrepreneurial psychology, and then results in entrepreneurial behavior. The whole procedure contains three processes which are external influence, internal influence, and self-breakthrough. The three characteristics of entrepreneurial mentor improves entrepreneurial reserve of entrepreneur in external influence process, and furthermore affects entrepreneur’s psychology. After being affected, entrepreneur’s psychological status changes in internal influence process towards a positive direction, and finally upgrades entrepreneurial outcomes in self-breakthrough process. At the end of this paper, the authors put forward strategic suggestions from three aspects: the coaching process of entrepreneurial mentors, the selection and recruitment of entrepreneurial mentors, and the cultivation of entrepreneurial mentors.