The Financial Services Agency (FSA) and the Ministry of Economy, Trade and Industry (METI) organized the “Expert Panel on Venture Capital Funds” to boost Japan’s VC sector. Following consultations, they released “Venture Capital: Recommendations and Expectations,” outlining best practices for VC firms to attract institutional investors. The initiative aims to enhance VC as a long-term investment, improve governance standards, and foster a thriving startup ecosystem. The practices emphasize flexible principles rather than strict rules, encouraging open communication between Limited Partners (LPs) and General Partners (GPs) while focusing on fiduciary duties, transparency, and support for portfolio companies.