Multilevel converters are well suited for high-power and high-quality power conversion. This paper presents a new seven-level V-clamp multilevel converter (VMC) with reduced clamping devices. All phases of the VMC share common DC-link capacitors and realize bidirectional power conversion without flying capacitors. Each branch of the VMC sustains only a single-level voltage of the DC-link capacitors during its commutation process. Hence, the series switches can be controlled as simple as one switch and the dynamic voltage unbalancing issue is avoided. In this paper, the operation principle and the modulation method of the VMC are analyzed in detail. In addition, compensation control for non-ideal factors is designed to improve the output performance. The output fundamental distortion is compensated and the harmonics are reduced. Finally, a laboratory prototype of the seven-level VMC is set up to verify the feasibility of the presented topology and analysis.