The relationship between venture capital and technological innovation is a topic that the theoretical and practice fields pay common attention to. At present, related researches have made many achievements worthy of attention, but the diverse types of the relationship between venture capital and technological innovation cannot provide strong theoretical guidance for practice. This paper systematically reviews the research outcomes between venture capital and technological innovation, and induces the factors affecting the relationship. On this basis, it tries to build a theoretical framework of the relationship between venture capital and technological innovation, and places emphasis on the exploration of the function process of the impact of venture capital on technological innovation. Finally, based on a thorough analysis of the existing shortcomings of existent research, this paper points out future research directions.