There are three different theories and evidences regarding whether venture capital(VC) adds valueto firm through non financial service: value-added, ex-an screening and value destruction. VC adds valueto firm through value-added service provision mechanism, governance mechanism and signal transmissionmechanism, VC does not definitely add value to firm, it is moderated by such factors as: characteristics of VCand it's manager, characteristics of firm and team of management, as well as the relationship between VC andmanagement team of firm. The differentiation with other financial intermediary make VC generally plays signaltransmission role, whether non financial service provided by VC meet demand by firm is precondition of value-added, and relation fit between VC and firm is both fundamental to governance mechanism but prerequisite tovalue- added service provision mechanism. Supply and demand fit for non financial service, as well as relation fitbetween VC and firm have implications both for VC's involvement in firm and the selection of VC by firm.