Graffinity, the German biotech company, has raised €31m ($27.4m) of venture capital in its last round of financing ahead of its initial public offering, which is scheduled for 2003.

Merlin Biosciences, a venture capitalist specialising in the biotechnology sector, was the biggest single investor in this financing round. Graffinity brought in three other new investors - GIMV, Oxford Bioscience Partners and The Dow Chemical Company.