As smaller biotech companies look to fund product development they have a number of options to raise money, including debt financing and equity financing. One relatively new model - which is gaining acceptance among biotech companies - is product-specific royalty financing. In this type of agreement investors 'buy' some, or all, of the future royalties associated with a product. This article follows an interview with Dr Ken Macleod of Paul Capital Partners in which the merits of royalty financing as an alternative to traditional financing were discussed; a number of notable Paul Capital royalty financing deals are examined.