This study examines the effects of several features of government-managed, sponsored venture capital (VC), and private VC funds on overall VC investments in new technology-based firms (NTBFs) during two developmental stages (i.e., growth and restructuring) in South Korean VC market and suggests hints for designing effective government VC programs. Our results from data on 463 funds in the period 1995–2005 indicate the factors bearing a positive effect on VC investments targeted to NTBFs. Such factors are the fund specialization focusing on certain industrial sectors, performance-sensitive compensation for venture capitalists in private and government VC funds.