Comparation on investment efficiency of government venture capital funds in 28 provinces of China

• The investment efficiency of the Chinese government venture capital funds is influenced by the province. • In provinces with underdeveloped venture capital, the investment efficiency of such funds is higher. • Economic level, educational attainment, and labor resource affect the investment efficiency significantly. • Provinces with high economic levels have lower economic growth rates, which cause low investment efficiency. Government venture capital (GVC) funds are regarded as an important policy-oriented financial instrument in many countries, especially in China. This study aims to evaluate the interprovincial investment efficiency of Chinese GVC funds through the data envelope analysis (DEA), and examine the factors that may influence investment efficiency. Based on data from 28 provinces in China, we find that the investment efficiency of GVC funds in China is generally low and needs to be further improved. Provinces with more developed venture capital (VC) sectors demonstrate relatively lower investment efficiency of GVC funds compared to others. The economic level, educational attainment, and labor resource have a significant influence on investment efficiency to varying degrees. The slower economic growth rate in developed regions of VC results in weaker investment efficiency. Policymakers should make great efforts to improve the investment efficiency of GVC funds and mitigate the economic disparities based on the specific conditions of each province.