How the Fund-Raising Game Works in Europe

Despite barely-twitching public markets and few signs of an upturn, some European biotechs are raising money (see Exhibit 1). Not that the sums are great: many smaller European firms who can't find new investors have resorted to internal, "bridging" rounds, such as that of France's genOway SA[See Deal]. CellFactors PLC, unable to convince institutional investors of their worth, has had to make do for now with the £2.5 million ($4 million) provided by retail/private investors [See Deal].

But European biotech fundraising in 2003 isn't all confined to single digits. In March 2003, German drug discovery group Cellzome AG raised €30 million ($32 million) in a Series...