OXFORD - Developments in European biotechnology over the last two years have altered the scene for investors, with more companies in more advanced stages of development. To meet the greater financing needs of these companies, the third fund put together by U.K. venture capital firm Merlin Biosciences will follow a different investment strategy than the firm's first two funds.

According to Merlin Chairman Chris Evans, the new fund ideally will invest in companies heading for an IPO, with a management team in place, and a technology platform that has generated products that are either in the clinic or will be entering the clinic within a year. However, these companies will have