The European Commission is launching a pan-European Venture Capital Fund-of-Funds, which is intended to complement other flagship Commission initiatives such as the CMU, with the aim of improving access to capital for start ups. The EU will provide cornerstone investments of up to a maximum budget of €400 million in one or more independently managed VC fund of funds. The fund manager(s) must then raise at least three times as much from private sources, triggering a minimum of €1.6 billion in venture capital funding. The Commission believes that EU involvement will make VC funds more attractive and significantly increase the availability of VC funding for start ups and SMEs in the EU.