This paper presents exploratory and qualitative research into the evolving decision-making processes of venture capital (VC) investors in China based on field research interviews with 40 VC investors between February 2003 and February 2004. It examines underlying decision-making processes that VC investors have adopted to operate in the Chinese market and to what extent these have been influenced by internal and external factors. A VC investment decision-making process based on the Western VC experience acts as the baseline process to examine the specific context of Chinese decision-making processes, and examines if hypotheses derived from Western VC decision-making hold true in China, a market characterized by high uncertainty, risk, and institutional barriers. Rather than concentrate on one specific part of the VC decision-making in China, this paper view decision-making as an integrated process with inter-linked challenges. This paper highlights key success factors and emerging trends that will shape the future of VC in China.