Ebb & Flow

Europe may be in danger of following the U.S. into a recession, but investors are still pouring money into venture funds. Two new funds are looking to add more than half a billion dollars to the venture pool.

Germany's TVM Techno Venture Management last week announced the second closing on E100 million ($89 million) for its TVM V Life Science Ventures fund, and plans to complete its fundraising by November.

The fund originally had set a target of E250 million, but, as TVM's Theresia Wermelskirchen told Ebb & Flow, "from the current interest we predict the fund will finish up closer to E400 million ($358 million)."

She added: "There is still a lot of money around and many large investors are looking for new sectors to invest in after the recent information technology and dotcom slump." TVM expects the majority of the money to come from European investors, with remaining investments from the U.S.

Previous TVM investments this year include German functional genomics play DeveloGen; Austrian cancer and infectious diseases vaccine company Intercell Biomedical;German chemical genomics company Morphochem; German oncology company Curacyte; and U.S. genomics and proteomics play Genicon Sciences.

In the U.K., MVM also is anticipating the closing of its International Life Sciences Fund II later this year. The venture capital arm of the Medical Research Council is looking to raise up to £100m ($143m). Investors in the first close of about £40 million will include 3i, Shell Pension Fund, Mitsubishi and Pfizer (PFE).

To date Investments led by MVM include women's health company Ardana Bioscience and vaccine play Oxxon Pharmaccines in the U.K., and U.S. pharmacogenetics company Third Wave(TWTI).

Investment

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