Abstract: Based on the data of initial public offering(IPO) companies in growth enterprises market(GEM) from 2009 to 2014, according to the source of capital,venture capital(VC) was divided into three types named VC backed by government, corporation and individual capital, to research VC and it's heterogeneity impact on IPO company's performance deterioration. The results indicate that compared to the companies without VC background, the IPO companies backed by VC have a greater degree of deterioration of financial performance; the heterogeneity of venture capital has impact on IPO company's deterioration of financial performance. The companies backed by individual;capital have a greater degree of deterioration of financial performance, and the VC backed by corporation can relieve this situation; the VC backed by government doesn't have a significant effect on the IPO company's deterioration of financial performance.