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Based on literature review, firstly, the work analyzed the necessity and main features of venture capital promoting green innovation of entity industry. Greenization of venture capital was the key to promote green innovation of entity industry. Secondly, the mechanism that venture capital promoted green innovation of entity industry was analyzed through model construction. The results showed that construction of ecological civilization as well as market competition and regulations were preconditions of transforming ordinary venture capital into green venture capital; they were also the precondition of venture capital promoting green innovation of entity industry. Thirdly, theoretical and empirical studies were conducted on effects of venture capital for green innovation of entity industry. Recommendations were proposed for venture capital to promote green innovation of entity industry. Empirical studies showed that venture capital could more effectively enhance the green innovation capacity of Chinese entity industry than bank loans. To exert the role of venture capital in green innovation of entity industry, the development of venture capital should be accelerated in a larger scale. Meanwhile, Chinese venture capital industry should be promoted for green transformation, thus more venture capital can be transformed into green venture capital.