<PAGE> 1
Independent Auditor's Report
To the Managing General Partners of
Technology Funding Partners III, L.P.
Technology Funding Venture Partners IV, An Aggressive Growth
Fund, L.P.,
Technology Funding Venture Partners V, An Aggressive Growth
Fund, L.P., and
Technology Funding Medical Partners I, L.P.:
We have examined management's assertion about Technology Funding
Partners III, L.P., Technology Funding Venture Partners IV, An
Aggressive Growth Fund, L.P., Technology Funding Venture Partners
V, An Aggressive Growth Fund, L.P., and Technology Funding Medical
Partners I, L.P. (the "Funds'") compliance with the requirements
of subsections (b) and (c) of Rule 17f-2 under the Investment
Company Act of 1940 ("the Act") as of December 31, 1998, included
in the accompanying Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940.
Management is responsible for the Funds' compliance with those
requirements. Our responsibility is to express an opinion on
management's assertion about the Funds' compliance based on our
examination.
Our examination was made in accordance with standards established
by the American Institute of Certified Public Accountants and,
accordingly, included examining, on a test basis, evidence about
the Funds' compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances.
Included among our procedures were the following tests performed
as of December 31, 1998, and with respect to agreement of security
purchases and sales, for the period from September 30, 1998 (the
date of our last examination) through December 31, 1998:
* Count and inspection of all securities located in the vault of
Silicon Valley Bank in San Mateo, California;
* Confirmation or examination of underlying documentation of all
securities purchased but not received;
* Reconciliation of all securities to the books and records of the
Funds and the Custodian; and
* Testing of a selected sample of security transactions to
determine that they were properly recorded.
We believe that our examination provides a reasonable basis for
our opinion. Our examination does not provide a legal
determination on the Funds' compliance with specified
requirements.
In our opinion, management's assertion that the Funds were in
compliance with the above mentioned provisions of Rule 17f-2 of
the Investment Company Act of 1940 as of December 31, 1998 with
respect to securities reflected in the investment accounts of the
Funds is fairly stated, in all material respects.
This report is intended solely for the information and use of the
Managing General Partners of the Funds and the Securities and
Exchange Commission and should not be used by anyone other than
those specified parties.
KPMG, LLP
Albuquerque, NM
March 4, 1999
<PAGE> 2
U.S. Securities and Exchange commission
Washington, D.C. 20549
<TABLE>
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR.17f-2)
- -----------------------------------------------------------------------------------------
1. Investment company Act File Number: Date examination completed:
814-48 December 31, 1998
- -----------------------------------------------------------------------------------------
2. State Identification Number:
<CAPTION>
- -----------------------------------------------------------------------------------------
<S><C> <C><C> <C><C> <C><C> <C><C> <C><C>
AL 87-327-RC AK 87-01278 AZ S-23025 AR 86-LI828 CA 504 8768 CO
CT S013517 DE DC FL 31472-002/WEE GA 56864620 HI
ID BC-30863 IL 8811465 IN 8708073 IA I-21938 KS 871090 KY 21,719
LA ME 35,149 MD MA 86-2774 MI 102065 MN
MS MO 248619 MT NE 39928 NV RG-88-161 NH
NJ R-1690 NM 87-55996 NY 72392 NC ND A366 OH 62344
OK IA0817-87 OR 86-2712 PA RI SC 30579 SD 15420
TN R88-2563 TX C3086000-01 UT 23212 VT VA WA C-26302
WV I-12197 WI 223615-01 WY 14741 PUERTO RICO S-993
- -----------------------------------------------------------------------------------------
Other (specify):
- -----------------------------------------------------------------------------------------
3. Exact name of investment Company as specified in registration statement:
Technology Funding Partners III, L.P.
- -----------------------------------------------------------------------------------------
4. Address of principal executive office: (number, street, city, state, zip code)
2000 Alameda de las Pulgas, Suite 250, San Mateo, CA 94403
- -----------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
U.S. Securities and Exchange commission
Washington, D.C. 20549
<TABLE>
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR.17f-2)
- -----------------------------------------------------------------------------------------
1. Investment company Act File Number: Date examination completed:
814-55 December 31, 1998
- -----------------------------------------------------------------------------------------
2. State Identification Number:
<CAPTION>
- -----------------------------------------------------------------------------------------
<S><C> <C><C> <C><C> <C><C> <C><C> <C><C>
AL 09511485 AK 88-00983 AZ 025245 AR 87-l1475 CA 505-0411 CO
CT S013240 DE DC FL 23152-004/WEE GA 56873679 HI
ID BC-32684 IL 8916520 IN 87-2346RC IA I-23717 KS 88069 5 KY 23,309
LA ME 44,693 MD MA SKN03876(LD-2) MI 102959 MN R31046
MS MO 173420 MT NE 45261 NV RG-88-162 NH
NJ SR-3464 NM 90-0009-2 NY NC ND D-064 OH 72217
OK I-22674 OR 89-2062 PA 87-12-031C RI SC 36097 SD 17124
TN RS90-1104 TX C33677001-01 UT 7170-02 VT 13680 VA WA C-28487
WV I-14198 WI 246469-02 WY PUERTO RICO
- -----------------------------------------------------------------------------------------
Other (specify):
- -----------------------------------------------------------------------------------------
3. Exact name of investment Company as specified in registration statement:
Technology Funding Venture Partners IV, An Aggressive Growth Fund, L.P.
- -----------------------------------------------------------------------------------------
4. Address of principal executive office: (number, street, city, state, zip code)
2000 Alameda de las Pulgas, Suite 250, San Mateo, CA 94403
- -----------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
U.S. Securities and Exchange commission
Washington, D.C. 20549
<TABLE>
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR.17f-2)
- -----------------------------------------------------------------------------------------
1. Investment company Act File Number: Date examination completed:
814-82 December 31, 1998
- -----------------------------------------------------------------------------------------
2. State Identification Number:
<CAPTION>
- -----------------------------------------------------------------------------------------
<S><C> <C><C> <C><C> <C><C> <C><C> <C><C>
AL RC0290000 AK 90-00364 AZ S-28092- AR 89-L744 CA 505-3070 CO 91-03-074
10-000145 QUAL
CT S018328 DE DC FL 34131-0031GEC GA 56891497 HI
ID BC-36434 IL 9222997 IN 92-0283RC IA KS 905000021 KY
LA ME MD SR910194 MA 92-2024CR MI 103217 MN R33651
MS FI-8909019 MO 205030 MT 25137 NE 50053 NV R92-155 NH
NJ SR-5242 NM P-921412 NY NC 451 ND E899 OH 79452
OK OR 89-0907 PA 89-9-50C RI SC 41064 SD 17917
TN RM92-2125 TX UT 000689020 VT #4/13/92-21 VA WA C-31295
WV I-15508 WI 246024-01 WY PUERTO RICO
- -----------------------------------------------------------------------------------------
Other (specify):
- -----------------------------------------------------------------------------------------
3. Exact name of investment Company as specified in registration statement:
Technology Funding Venture Partners V, An Aggressive Growth Fund, L.P.
- -----------------------------------------------------------------------------------------
4. Address of principal executive office: (number, street, city, state, zip code)
2000 Alameda de las Pulgas, Suite 250, San Mateo, CA 94403
- -----------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
U.S. Securities and Exchange commission
Washington, D.C. 20549
<TABLE>
FORM N-17f-2
Certificate of Accounting of Securities and Similar Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 (17 CFR.17f-2)
- -----------------------------------------------------------------------------------------
1. Investment company Act File Number: Date examination completed:
814-124 December 31, 1998
- -----------------------------------------------------------------------------------------
2. State Identification Number:
<CAPTION>
- -----------------------------------------------------------------------------------------
<S><C> <C><C> <C><C> <C><C> <C><C> <C><C>
AL RC29300025 AK 93-00839 AZ S-0032159- AR 92-L604 CA 505-6486 CO RF-93-05-
QUAL 308
CT S021143 DE DC FL 39148-001 GA 56891497 HI
ID 42609 IL 9428215 IN 92-0676 IA I-29639 KS 905000021 KY 28716
LA 28195 ME 93-1606 MD SR920480 MA 94-3355 MI 103217 MN R36213
MS FI-92-11-001 MO 1992-01099 MT NE NV R92-155 NH
NJ SR-7107 NM P942354 NY NC 776 ND E899 OH 87100
OK I-37863 OR 92-1029 PA 92-11-8C RI SC 41064 SD 19285
TN RM94-3287 TX C41440-000-01 UT A23677-06 VT 11/17/92-04 VA WA C-35256
WV I-17491 WI 270232-01 WY PUERTO RICO
- -----------------------------------------------------------------------------------------
Other (specify):
- -----------------------------------------------------------------------------------------
3. Exact name of investment Company as specified in registration statement:
Technology Funding Medical Partners I, L.P.
- -----------------------------------------------------------------------------------------
4. Address of principal executive office: (number, street, city, state, zip code)
2000 Alameda de las Pulgas, Suite 250, San Mateo, CA 94403
- -----------------------------------------------------------------------------------------
</TABLE>
