Abstract: In recent years, with the rapid development of M&A market and the diversification of exit channels of equity investment, the number of M&A decision-making events involving venture capital increased significantly. This paper takes the M&A events completed by the listed companies on the GEM as the research sample, and systematically studies the impact of venture capital on the frequency of M&A, the way of M&A payment and the diversified M&A behavior and its mechanism. The results show that venture capital can reduce the frequent M&A behavior of M&A parties by restraining the overconfidence of management;thanks to the mitigation of information asymmetry in M&A by venture capital, the target side is more likely to accept the non cash way as the consideration of M&A payment from enterprises with venture capital background; in addition, by improving the effectiveness of internal control of enterprises, venture capital makes enterprises with venture capital background prefer to carry out M&A in the same industry, so as to optimize the target selection of M&A and realize enterprises scale effect.

Key words: Key words：venture capital;M&A frequency, payment method, diversified M&A