Taking listed companies on SME Board and GEM in Shenzhen from 2009 to 2019 as research samples, this paper analyzes the impact of CVC parent company reputation on the innovation ability of enterprises, and further tests the regulatory role of the geographical relevance between CVC parent companies and venture enterprises. The results show that the reputation of CVC parent company is helpful to improve the innovation ability of enterprises, and when there is geographical relevance between CVC parent company and venture enterprise, the reputation of CVC parent company can play an active role in enterprise innovation. In addition, the promotion of CVC parent company reputation on enterprise innovation is even greater in enterprises whose founders have operational control and enterprises with higher participation of CVC parent company. Further exploring the internal motivation and economic consequence reveals that the motivation of the high-reputation CVC parent company promoting the invested enterprise innovation is to obtain strategic returns, and the result is to promote the substantial innovation ability of the invested enterprises. Finally, the mechanism test show that the reputation of CVC parent company promotes the invested enterprise innovation by having longer investment term and alleviating the financing constraints of the invested enterprises.