Building on the rationales of behavioral theory, we investigate how Venture Capital (VC) adjust their fund investment strategy in response to performance feedback from multiple reference levels. We develop a two-dimensional theoretical framework that accounts for both information sources for setting reference levels and contextual concerns that impinge on decisions. We find that VC funds increase investments in early-stage startups—deemed riskier bets—when performance falls below the aspirational levels but reduce investments in risky bets when fund performance falls below basal levels. In addition, performance feedback from historical reference levels, compared to social reference levels, is particularly salient for VCs.