THE OPERATIONAL MECHANISM OF U.S. VENTURE CAPITAL Liang Xiwei and Chen Shaojun (19) As one of the major subsidizers for new industries, the venture capital has grea tly promoted technological innovation in the United States. With a view to counterin g erroneous understanding of the venture capital, this article discusses its ope rational mechanism from the angle of its background, operational style, impact o n technological innovation and risk evasion in the light of the reality in the U nited States.