The structure of venture capital funds in the three countries is now basically the same, although there are some unique characteristics in each country. The liquidity of external labor markets and M&A markets influences the risk appetite of entrepreneurs and VCs. Lack of convertible preferred stock resulted in the creation of similar contractual mechanisms to protect VCs as minority stakeholders in Japan and China, Individual venture capitalists in Japanese financial institution backed VCs receive no equity incentive and their LPs are either parent financial institutions or their client companies, which have no incentive to monitor GPs, while LPs of VC funds in the United States are mostly pension funds and university endowments, of which fund managers have a strong incentive to monitor GPs who have strong equity incentive as individuals. Many Chinese LPs are wealthy families and individuals who are more active and eager to participate in management, including investment decisions. Government guidance funds have played an important role.