Abstract: Medium and small sized companies in our country are confronted with many difficulties, and a major one is the lack of capital in their technical innovation activities and the big risk of technical innovations. The traditional financing way is difficult for medium and small sized companies to seek capital, but ventureinvestment is able to solve the problem and hence promote technical innovations.This article launches a pilot study on how medium and small sized companies utilize venture investment to advance their industries, and puts forward the corresponding countermeasures and suggestions.