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This paper is aimed at proposing KMPI (Knowledge Management Performance Index) for evaluating the knowledge management performance of venture businesses. In the aftermath of the frenzy about using the Internet technology in management, knowledge management became a popular management technique because knowledge circulation process (KCP) within an organization, which is believed to support work process positively and contribute to creating corporate memory, can be facilitated much more smoothly and fast with the Internet technology being actively adopted as a main telecommunication vehicle. KMPI depends on the quality of knowledge circulation process which typically consists of five steps such as knowledge creation, knowledge accumulation, knowledge sharing, knowledge utilization, and knowledge internalization. Especially, venture business is known as active in its knowledge circulation process. However, literature about studying KMPI for evaluating knowledge management performance of venture businesses does not exist. In this sense, we propose KMPI in a statistically sound way. Questionnaire survey was conducted extensively among a lot of venture businesses listed in KOSDAQ. Statistical results were suggested proving that the proposed KMPI has a significant relationship with typical financial performance measures.