Biotechnology companies raised 44% less money in 1998 than in 1997, according to a report from the private merchant bank Burrill & Co. (San Francisco, CA). At the close of 1998, only $4 billion had been raised, compared to $7.1 billion the year before. Additionally, there were only 14 initial public offerings in 1998 (raising $371 million) compared with 27 in 1997, which raised $709 million. The report blames the poor capital markets in the last half of 1998 for the collapse in funding, and predicts a gloomy 1999 for small biotechnology companies without product revenues, as investors turn to lower risk enterprises, such as those linked to the Internet.