Monday, July 2, 2001
2Q Financial Markets Review
Europe: Just wait 'til 2002
It is notoriously difficult to predict the course of the financial
markets, but with half the year over, European market watchers polled by BioCentury
last December are proving remarkably accurate: 2001 is on track to be the second
best financing year ever for Europe, with particular strength in venture rounds.
But the IPO market is remarkably weak - in fact the weakest since 1995. If the
prognosticators continue to be correct, most of the 20-plus companies hoping
to go public this year will have to wait.
Only four European companies have gone public this year, raising
a mere $80.7 million. While it would be unfair to compare this to the $901.2
million raised by 13 companies in the first half of 2000, in the previous three
years (1997-99), European companies raised an average of $209 million in the
first six months (see "The European Funding Cycle," A8).