Abstract: Using the data of CV Source during the period from 2005 to 2013 and multiple regression model, we examine the effect of knowledge diversification of venture capital firm on exit performance, and we also analyze the important moderating effect of investment stage on the relationship between knowledge diversification and exit performance. The results indicate that (1) there is a significant U-shaped relationship between knowledge diversification of venture capital firm and exit performance;(2) investment stage will moderate the relationship between knowledge diversification and performance, that is, in early stage investments, the U-shaped relationship will be more pronounced than in cases of late stage investments.