The European Commission establishes a European Strategic Investments Fund in June 2016 which is expected to trigger EUR 315 billion investments and to create 1.3 million new jobs in young ventures and SMEs. The decision to implement this fund is based on the desire to mimic the success of the North American capital market for start-ups and SMEs which has proven to help building the currently most important multinational corporations. Policy makers acknowledge that investment shortfalls (in Europe) are caused by both supply and demand factors and that some European Union countries might not be sufficiently competitive. However, these countries also cut public spending and this requires action on the European level to increase the supply of risk capital in Europe.