The government guidance fund supports the entrepreneurship and technological innovation of small and medium-sized science and technology enterprises in the initial stage by guiding the venture capital behavior. The purpose of government-guided funds is to exert the leverage amplification effect of financial funds, increase the supply of venture capital, and overcome the market failure problem of allocating venture capital only through the market. In particular, by encouraging venture capital enterprises to invest in early enterprises such as seed stage and start-up stage, we can make up for the shortage of ordinary venture capital enterprises mainly investing in enterprises in growth stage, maturity stage and reconstruction stage. The operating principles of guiding funds are government guidance, market operation, scientific decision-making and risk prevention.