Abstract:When the performance of the venture portfolio is poor, the venture capital investment will choose to continue to increase the investment or timely terminate the investment. Based on the venture capital events in China’s capital market from 2006 to 2015, this paper studies the differences of commitment escalation in investment decisions between cross border venture capital and domestic venture capital. The empirical study finds that cross border venture capital is more inclined to upgrade its commitment when faced with the decision of commitment escalation, while domestic venture capital will timely terminate the investment that they think performs poorly. On this basis, a further study finds that cross border venture capital investment through the establishment of local branches can not effectively reduce the possibility of commitment escalation.