Using a unique and detailed dataset of Korean venture capital funds liquidated from 1993 to 2008, this paper investigates the performance of venture capital funds which takes account of systematic risks in venture capital funds. With the help of an informative dataset, we make accurate analyses on the performance, performance persistence, and cash flows of venture capital funds based on our novel performance measures. Previous studies overstate the performance of private equity funds since they assume the beta of a private equity fund is one. We find that government participation negatively affects the performance of venture capital funds but positively affects the cash inflows of a following fund. We also find that sequence number of a fund has a positive influence on performance. In terms of the persistence of fund performance, we show that the performance of the second previous fund positively affect the performance of the current fund stronger than the first pervious fund performance, due to the time lag of distribution of performance information of venture capital funds to investors. Moreover, we show the evidence that the previous performance of public markets have a positive influence on the probability of raising a following venture capital fund.