Many firms with high growth potential are not able to raise the capital required to finance their investments, leading societies to miss out on innovation and job creation. To address this issue, governments have implemented policy instruments with the aim of increasing the supply of venture capital (VC). The aim of this dissertation is to extend our knowledge of the factors that influence the effectiveness of direct government intervention initiatives by focusing on the interests of governments, private VC firms, and entrepreneurs. The goal of the first study is to investigate the fundraising outcomes of independent VC firms that manage funds on behalf of both private and governmental investors. The second study investigates the societal impact of government investments in funds depending on the type of VC firm managing the fund. In the third and final study, we focus on the role of entrepreneurs’ growth aspirations and internal and external human capital factors in explaining the wide variance in growth outcomes of VC-backed firms. Overall, the three studies in this dissertation show that the outcomes of direct government intervention initiatives are affected by the interplay between self-interested government officials, fund managers, and entrepreneurs.