<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 814-124
TECHNOLOGY FUNDING MEDICAL PARTNERS I, L.P.
-------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-3166762
------------------------------- ---------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2000 Alameda de las Pulgas, Suite 250
San Mateo, California 94403
--------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(650) 345-2200
--------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
--- ---
No active market for the units of limited partnership interests
("Units") exists, and therefore the market value of such Units cannot be
determined.
<PAGE>
I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
--------------
<TABLE>
<CAPTION>
(unaudited)
September 30, December 31,
2000 1999
------------- ------------
<S> <C> <C>
ASSETS
Equity investments, at fair value
(cost basis of $3,360,417 and
$3,336,595 in 2000 and 1999,
respectively) $4,401,378 5,516,024
Cash and cash equivalents 41,645 175,990
Other assets 1,817 1,043
--------- ---------
Total assets $4,444,840 5,693,057
========= =========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and accrued expenses $ 39,943 35,528
Due to related parties 250,000 35,731
Short-term borrowings -- 2,646
--------- ---------
Total liabilities 289,943 73,905
Commitments and contingencies
Partners' capital:
Limited Partners (79,716 Units
outstanding) 4,166,885 5,616,497
General Partners (11,988) 2,655
--------- ---------
Total partners' capital 4,154,897 5,619,152
--------- ---------
Total liabilities and
partners' capital $4,444,840 5,693,057
========= =========
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
STATEMENTS OF OPERATIONS (unaudited)
-----------------------------------
<TABLE>
<CAPTION>
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
----------------------- -----------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Dividend income $ 79 3,989 8,045 11,967
------- ------- --------- -------
Total income 79 3,989 8,045 11,967
Costs and expenses:
Management fees 39,649 39,650 118,947 118,948
Individual General Partners'
compensation 5,717 8,638 22,539 27,187
Operating expenses:
Administrative and investor services 43,217 57,226 110,857 184,023
Investment operations 7,709 2,956 53,339 29,969
Professional fees 20,923 7,163 55,772 36,731
Computer services 11,468 11,423 29,761 32,300
Interest expense 164 5,548 3,936 15,359
------- ------- --------- -------
Total operating expenses 83,481 84,316 253,665 298,382
------- ------- --------- -------
Total costs and expenses 128,847 132,604 395,151 444,517
------- ------- --------- -------
Net operating loss (128,768) (128,615) (387,106) (432,550)
Net realized gain (loss) from sales
of equity investments 62,087 (297,382) 61,319 (479,558)
------- ------- --------- -------
Net realized loss (66,681) (425,997) (325,787) (912,108)
Change in net unrealized fair
value of equity investments 56,852 553,258 (1,138,468) 928,319
------- ------- --------- -------
Net (loss) income $ (9,829) 127,261 (1,464,255) 16,211
======= ======= ========= =======
Net (loss) income per unit $ (0.12) 1.50 (18.18) 0.12
======= ======= ========= =======
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS (unaudited)
-----------------------------------
<TABLE>
<CAPTION>
For the Nine Months
Ended September 30,
---------------------------
2000 1999
------ ------
<S> <C> <C>
Cash flows from operating activities:
Dividend income received $ 8,045 11,967
Cash paid to vendors (116,120) (120,966)
Cash (paid to) advanced by related parties,
net (61,120) 13,768
--------- -------
Net cash used by operating activities (169,195) (95,231)
--------- -------
Cash flows from investing activities:
Proceeds from the sales of equity investments 47,678 --
Distributions from venture capital limited
partnerships 20,864 --
Purchase of equity investments (31,046) --
--------- -------
Net cash provided by investing activities 37,496 --
--------- -------
Cash flows from financing activities:
(Repayments of) proceeds from short-term
borrowings, net (2,646) 95,359
--------- -------
Net cash (used) provided by
financing activities (2,646) 95,359
--------- -------
Net (decrease) increase in cash and cash
equivalents (134,345) 128
Cash and cash equivalents at beginning of year 175,990 387
--------- -------
Cash and cash equivalents at September 30 $ 41,645 515
========= =======
Reconciliation of net (loss) income to
net cash used by operating activities:
Net (loss) income $(1,464,255) 16,211
Adjustments to reconcile net (loss) income to
net cash used by operating activities:
Change in net unrealized fair value of
equity investments 1,138,468 (928,319)
Net realized (gain) loss from sales of
equity investments (61,319) 479,558
Changes in:
Due to related parties 214,269 331,388
Other changes, net 3,642 5,931
--------- -------
Net cash used by operating activities $ (169,195) (95,231)
========= =======
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
----------------------------------------
1. General
-------
Interim Financial Statements
----------------------------
In the opinion of the Managing General Partners, the accompanying interim
financial statements reflect all adjustments necessary for the fair
presentation of the financial position, results of operations, and cash
flows for the interim periods presented. These statements should be read
in conjunction with the Annual Report on Form 10-K for the year ended
December 31, 1999. Allocation of income and loss to Limited and General
Partners is based on cumulative income and loss. Adjustments, if any, are
reflected in the current quarter balances.
Valuation of Investments
------------------------
Investments are valued at fair value as required by the Investment Company
Act of 1940.
Under the direction and control of the Independent General Partners, the
Managing General Partners are delegated the authority to establish
valuation procedures and periodically apply such procedures to the
Partnership's venture capital investment portfolio. In fulfilling this
responsibility, the Managing General Partners periodically update and
revise the valuation procedures used to determine fair value in order to
reflect new events, changing market conditions, more experience with
investee companies, or additional information, any of which may require the
revision of previous estimating procedures. The valuation procedures were
revised and updated by the Managing General Partners in the quarter ended
June 30, 2000. A change in fair value of $4,392,070 was recognized during
the quarter ended June 30, 2000 to reflect the revisions to the valuation
methodology and is included in the "Change in net unrealized fair value" on
the Statement of Operations.
The fair value of investments in publicly traded securities is considered
to be the amount which the Partnership may reasonably expect to receive if
the investments were sold on the valuation date. Unrestricted securities
are valued at the five-day average closing sales price or bid/ask price
that is available on a national securities exchange or over-the-counter
market. Valuation discounts of 5% to 50% are applied to securities subject
to resale restrictions resulting from Rule 144, contractual lock-ups such
as those commonly associated with underwriting agreements, or knowledge of
material non-public information and also to unrestricted securities when
the number of shares held by the Partnership and its affiliates is
substantial in relation to the average trading volume.
The fair value of all other investments is determined in good faith by the
Managing General Partners under the delegated authority of the Independent
General Partners after consideration of available, relevant information.
There is no ready market for the Partnership's investments in private
companies or unregistered securities of public companies. Fair value is
generally defined as the amount the Partnership could reasonably expect to
receive for an investment in an orderly disposition on a current sale.
Other significant factors considered in the estimation of fair value
include the inherent illiquidity of and lack of marketability associated
with venture capital investments in private companies or unregistered
securities, the investee company's enterprise value established in the last
round of venture financing, changes in market conditions since the last
round of venture financing or since the last reporting period, the value of
a minority interest in the investee company, contractual restrictions on
resale typical of venture financing instruments, the investee company's
financial position and ability to obtain any necessary additional
financing, the investee company's performance as compared to its business
plan, and the investee company's progress towards initial public offering.
The values determined for the Partnership's investments in these securities
are based upon available information at the time the good faith valuations
are made and do not necessarily represent the amount which might ultimately
be realized which could be higher or lower than the reported fair value.
At September 30, 2000 and December 31, 1999, the investment portfolio
included investments totaling $1,963,599 and $3,219,348, respectively,
whose fair values were established in good faith by the Managing General
Partners in the absence of readily ascertainable market values. In
addition, investments in publicly traded securities which have been
subjected to a discount for legal, contractual or practical restrictions as
determined by the Managing General Partners amounted to $2,027,831 and
$1,961,014 at September 30, 2000 and December 31, 1999, respectively.
Because of the inherent uncertainty in the valuation, the values may differ
significantly from the values that would have been used had a ready market
for the securities existed, and the differences could be material.
2. Financing of Partnership Operations
-----------------------------------
The Managing General Partners expect cash received from the future
liquidation of Partnership investments and short-term borrowings will
provide the necessary liquidity to fund Partnership operations. The
Partnership may be dependent upon the financial support of the Managing
General Partners to fund operations if future proceeds are not received
timely. The Managing General Partners have committed to support the
Partnership's working capital requirements through short-term advances as
necessary.
3. Related Party Transactions
--------------------------
Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs for the nine months ended
September 30, 2000 and 1999, were as follows:
<TABLE>
<CAPTION>
2000 1999
------ ------
<S> <C> <C>
Management fees $118,947 118,948
Individual General Partners' compensation 22,539 27,187
Reimbursable operating expenses 133,903 171,485
</TABLE>
Certain reimbursable expenses have been accrued based upon interim
estimates prepared by the Managing General Partners and are adjusted to
actual costs periodically. Amounts due to related parties for such
expenses were $170,702 and $22,515 at September 30, 2000 and at December
31, 1999, respectively.
Pursuant to the Partnership Agreement, the Partnership shall reimburse the
Managing General Partners for operational costs incurred by the Managing
General Partners in conjunction with the business of the Partnership.
Initially the Partnership could not reimburse the Managing General Partners
for operational costs that totaled more than 3% of total Limited Partner
capital contributions of the Partnership in each year through the first
five years of operations after the termination of unit sales and 1.5% in
any year thereafter. The limitation decreased from 3% to 1.5% on May 3,
2000. For purposes of this limitation, the Partnership's operating year
begins May 3rd. During the quarters ended September 30, 2000 and 1999, no
operational expenses were absorbed by the General Partners.
Management fees payable were $79,298 and $13,216 at September 30, 2000 and
December 31, 1999. Management fees are equal to 2% of the total Limited
Partner capital contributions for the first year of Partnership operations
through the sixth year. Beginning in the seventh year (May 2001),
management fees will decline by 10% per year from the initial 2%.
Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of portfolio
companies. It is the Managing General Partners' policy that all such
compensation be transferred to the investing partnerships. If the options
are non-transferable, they are not recorded as an asset of the Partnership.
Any profit from the exercise of such options will be transferred if and
when the options are exercised and the underlying stock is sold by the
officers. Any such profit is allocated amongst the Partnership and
affiliated partnerships based on their proportionate investments in the
portfolio company. At September 30, 2000, the Partnership and affiliated
partnerships had an indirect interest in non-transferable Endocare, Inc.
options with a fair value of $223,789.
<PAGE>
4. Equity Investments
------------------
<TABLE>
At September 30, 2000, equity investments consisted of:
September 30, 2000
Principal ----------------------
Amount or
Industry (1)/ Investment Shares as of Cost Fair
Company Position Date September 30, 2000 Basis Value
------------- -------- ---------- ------------------ --------- ---------
<S> <C> <C> <C> <C> <C>
Medical/Biotechnology -- 43.2%
------------------------------
Acusphere, Preferred 1995-
Inc. (a) shares 1997 215,635 $ 706,251 970,810
Biex, Inc. (a) (b) Preferred
shares 1997 120,000 300,000 60,000
ConjuChem Inc. Preferred
(a) share
warrant at
exercise aggregate
price TBD; purchase
expiring price
2001 1996 $24,291 0 0
CV Therapeutics, Inc. Common
shares 2000 720 14,408 53,842
Prolinx, Inc. Preferred 1995-
(a) shares 1998 592,308 688,461 710,770
--------- ---------
1,709,120 1,795,422
--------- ---------
Medical/Diagnostic Equipment -- 50.5%
-------------------------------------
Endocare, Common 1996-
Inc. (b) shares 1997 152,400 466,000 1,420,216
Endocare, Common share
Inc. (b) warrant at $3.00;
expiring 2001 1996 30,000 0 234,570
LifeCell Preferred 1996-
Corporation shares (2) 2000 2,705 247,500 337,491
LifeCell Common share
Corporation warrant at $4.13;
expiring 2001 1996 56,451 2,500 20,153
R2 Technology, Preferred 1994-
Inc. (a) shares 1996 117,134 134,268 85,721
R2 Technology, Preferred
Inc. (a) share warrant
at $2.00;
expiring
2000 1995 2,417 0 732
--------- ---------
850,268 2,098,883
--------- ---------
Health Information System -- 1.8%
---------------------------------
ADESSO Specialty
Services Preferred 1997-
Organization Inc.(a) shares 2000 13,753 131,048 57,763
Simione Central
Holdings, Inc. Common
(a) shares 1999 6,312 94,899 15,401
--------- ---------
225,947 73,164
--------- ---------
Pharmaceuticals -- 3.3%
-----------------------
Axys
Pharmaceuticals, Common
Inc. shares 1995 9,464 125,000 61,223
Periodontix, Preferred 1993-
Inc. (a) shares 1996 167,000 234,000 75,150
--------- ---------
359,000 136,373
--------- ---------
Environmental -- 0.1%
---------------------
Triangle
Biomedical
Sciences, Common
Inc. (a) shares 1999 366 10,248 2,562
Triangle Common
Biomedical share
Sciences, warrant
Inc. (a) at $28.00;
expiring
2009 1999 366 366 92
--------- ---------
10,614 2,654
--------- ---------
Venture Capital Limited Partnership Investments -- 7.1%
-------------------------------------------------------
Medical Science Limited
Partners II, L.P. Partnership
(a) Interests various $250,000 205,468 294,882
--------- ---------
205,468 294,882
--------- ---------
Total equity investments-106.0% $3,360,417 4,401,378
========= =========
Legend and footnotes:
-- No investment held at end of period.
0 Investment active with a carrying value or fair value of zero.
(a) Equity security acquired in a private placement transaction; resale may be subject to
certain selling restrictions.
(b) Portfolio company is an affiliate of the Partnership; resale may be subject to certain
selling restrictions.
(1) Represents the total fair value of a particular industry segment as a percentage of
Partners' Capital at 9/30/00.
(2) The Partnership has no income-producing equity investments except for LifeCell
Corporation Preferred shares.
</TABLE>
All investments are valued at fair value as determined in good faith by the
Managing General Partners. See Note 1--Valuation of Investments.
Significant purchases and sales of investments during the nine months ended
September 30, 2000 are as follows:
Acusphere, Inc.
---------------
In April 2000, the company completed a new round of financing at a higher
valuation. The Partnership did not participate in the round.
ADESSO Specialty Services Organization, Inc.
--------------------------------------------
In March 2000, the Partnership purchased 1,848 Series E Preferred shares
for $31,046.
CV Therapeutics, Inc.
--------------------
In September 2000, the Partnership net exercised a common share warrant for
1,920 shares at $20.00 each and received 1,316 common shares with a cost
basis of $26,329. The Partnership realized a gain of $26,329 on the warrant
exercise.
In September 2000, the Partnership sold 596 common shares for proceeds of
$47,678 and realized a gain of $35,758.
In October 2000, the Partnership sold the remaining 720 common shares for
proceeds of $57,598 and realized a gain of $43,190.
Prolinx, Inc.
-------------
In June 2000, the company completed a new round of financing at a higher
valuation. The Partnership did not participate in the round.
Venture Capital Limited Partnership Investment
----------------------------------------------
The Partnership received a cash distribution of $20,864 and recorded a
$28,688 increase in fair value as a result of a net increase in the fair
value of the underlying investments of the partnership.
Marketable Equity Securities
----------------------------
Marketable equity securities had aggregate costs of $389,409 and aggregate
fair values of $418,867 at September 30, 2000. The net unrealized gain at
September 30, 2000, included gross gains of $107,644.
Subsequent Events
-----------------
Subsequent to Sept 30, 2000, the fair value of the Partnership's investment
in Endocare, Inc. decreased by $411,586 as a result of a decrease in the
publicly traded market price on November 9, 2000.
5. Cash and Cash Equivalents
-------------------------
Cash and cash equivalents at September 30, 2000, and December 31, 1999,
consisted of:
<TABLE>
<CAPTION>
2000 1999
------ ------
<S> <C> <C>
Demand accounts $41,574 175,922
Money-market accounts 71 68
------ -------
Total $41,645 175,990
====== =======
</TABLE>
6. Subsequent Events
-----------------
On November 8, 2000, a proxy statement and ballot were mailed to the
Limited Partners of record on the close of business October 31, 2000 along
with a notice of a special meeting of Limited Partners to be held on
December 8, 2000. Items to be voted upon include the following:
(1) The election of three Individual General Partners;
(2) The election of two Managing General Partners;
(3) Ratification of the Individual General Partners' appointment of Arthur
Andersen LLP as independent certified public accountants of the
Partnership;
(4) The amendment of Article 2, Section (m) of the Partnership Agreement
to delete references to "Controlling Person" in the definition of
"General Partner Overhead" so that the salary and fringe benefits of a
Controlling Person of a Managing General Partner directly involved in
carrying out the business of the Partnership are expenses of the
Partnership;
(5) The amendment of Article 4.01(c) of the Partnership Agreement to
remove the limit on reimbursement of operational costs to the
Managing General Partners or their affiliates;
(6) The amendment of Article 1.03 of the Partnership Agreement to clarify
the Partnership's investment objective;
(7) The amendment of Article 5.04 of the Partnership Agreement to clarify
the Limited Partners' right to vote under the Investment Company Act
of 1940, as amended (the "Act");
(8) Such other matters as may properly come before the Meeting or any
adjournment thereof.
If approved, the changes proposed in Items 4 and 5 would become effective
as of January 1, 2000 and would result in additional expense to the
Partnership of approximately $6,785 and $0, respectively, for the year
ending December 31, 2000.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Financial Condition, Liquidity and Capital Resources
----------------------------------------------------
The Partnership operates as a business development company under the
Investment Company Act of 1940 and makes venture capital investments in new
and developing companies. The Partnership's financial condition is
dependent upon on the success of the portfolio companies. There is no
ready market for many of the Partnership's investments. It is possible
that some of its venture capital investments may be a complete loss or may
be unprofitable and that others will appear likely to become successful,
but may never realize their potential. The valuation of the Partnership's
investments in securities for which there are no available market quotes is
subject to the estimate of the Managing General Partners in accordance with
the valuation guidance described in Note 1 to the financial statements. In
the absence of readily obtainable market values, the estimated fair value
of the Partnership's investments may differ significantly from the values
that would have been used had a ready market existed.
During the nine months ended September 30, 2000, net cash used by operating
activities totaled $169,195. The Partnership paid management fees of
$52,865 to the Managing General Partners and received advances from the
Managing General Partners totaling $14,284 to fund its operations. In
addition, $22,539 was paid to the Individual General Partners as
compensation for their services. The Partnership paid other operating
expenses of $112,184 and interest on borrowings of $3,936. Dividend income
of $8,045 was received.
During the nine months ended September 30, 2000, the Partnership funded an
equity investment of $31,046 to a portfolio company in the health
information system industry. Proceeds from equity investment sales were
$47,678 and cash distributions of $20,864 were received from venture
capital limited partnership investments. Net repayments of short-term
borrowings were $2,646.
Cash and cash equivalents at September 30, 2000, were $41,645. Future
proceeds from investment sales, short-term borrowings and operating cash
reserves along with Managing General Partners' support are expected to be
adequate to fund Partnership operations through the next twelve months.
Results of Operations
---------------------
Current quarter compared to corresponding quarter in the preceding year
-----------------------------------------------------------------------
Net loss was $9,829 for the quarter ended September 30, 2000, compared to
net income of $127,261 for the same period in 1999. The change was
primarily due to a $496,406 decrease in the change in net unrealized fair
value of equity investments, partially offset by a $359,469 increase in
realized gains from equity investment sales.
The Partnership recorded increases in equity investment fair value of
$56,852 and $553,258 for the quarters ended September 30, 2000 and 1999,
respectively. The 2000 increase was primarily due to increases in
portfolio companies in the biotechnology industry offset by decreases in
the medical/diagnostic equipment industry. The 1999 increase was primarily
due to increases in the medical/diagnostic equipment and pharmaceutical
industries.
Net realized gains from sales of equity investments were $62,087 for the
quarter ended September 30, 2000, compared to a net loss of $297,382 for
the same period in 1999. The 2000 gain resulted from the warrant net
exercise and sale of CV Therapeutics, Inc. The 1999 loss is due to the
sale of Naiad Technologies, Inc.
Total operating expenses were $83,481 for the quarter ended September 30,
2000, compared to $84,316 for the same period in 1999. In the second
quarter of 2000, the Managing General Partners billed the Partnership an
additional $36,071 for investment management expenses incurred by the
General Partners in 1998 and 1999, but not previously billed to the
Partnership. If these expenses had been billed in prior years, operating
expenses for the three months ended September 30, 2000 and 1999 would have
been $83,481 and $86,835, respectively.
Given the inherent risk associated with the business of the Partnership,
the future performance of the portfolio company investments may
significantly impact future operations.
Current nine months compared to corresponding nine months in the
--------------------------------------------------------------
preceding year
--------------
Net loss was $1,464,255 for the nine months ended September 30, 2000,
compared to net income of $16,211 during the same period in 1999. The
decrease was primarily due to a $2,066,787 decrease in the change in net
unrealized fair value of equity investments, partially offset by a $540,877
increase in realized gains from equity investment sales and a $44,717
decrease in total operating expenses.
During the nine months ended September 30, 2000, the Partnership recorded a
decrease in fair value of equity investments of $1,138,468 compared to an
increase of $928,319 for the corresponding period of 1999. The 2000
decrease was primarily due to a decrease in fair value of $4,392,070 for
the change in valuation methodology discussed in Note 1 to the financial
statements. This change was partially offset by increases in portfolio
companies in the biotechnology and medical/diagnostic equipment industries.
The 1999 increase was primarily due to increases in the medical/diagnostic
equipment industry, partially offset by decreases in the environmental
industry.
Realized gains from equity investment sales totaled $61,319 for the nine
months ended September 30, 2000 compared to losses of $479,558 for the
corresponding period in 1999. The 2000 gain primarily resulted from the
warrant net exercise and sale of CV Therapeutics, Inc. The 1999 loss is
due to the sales of Naiad Technologies, Inc. and CareCentric Solutions,
Inc.
Total operating expenses were $253,665 and $298,382 for the nine months
ended September 30, 2000 and 1999, respectively. In the second quarter of
2000, the Managing General Partners billed the Partnership an additional
$36,071 for investment management expenses incurred by the General Partners
in 1998 and 1999, but not previously billed to the Partnership. If these
expenses had been billed in prior years, operating expenses for the nine
months ended September 30, 2000 and 1999 would have been $217,594 and
$308,083, respectively. The decrease is attributable to decreased
investment activity and the related administrative costs.
II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) A Form 8-K was filed by the Partnership on September 12, 2000 to
report the resignation of KPMG LLP as the Partnership 's independent
accountants. A Form 8-K/A was filed by the Partnership on September
25, 2000 with KPMG LLP's letter in response to the Form 8-K.
A Form 8-K was filed by the Partnership on November 13, 2000 to
report the appointment of Arthur Andersen LLP as the Partnership's
independent public accountants.
(b) Financial Data Schedule for the nine months ended and as of September
30, 2000 (Exhibit 27)
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
TECHNOLOGY FUNDING MEDICAL PARTNERS I, L.P.
By: TECHNOLOGY FUNDING INC.
TECHNOLOGY FUNDING LTD.
Managing General Partners
Date: November 14, 2000 By: /s/Charles R. Kokesh
-----------------------------------
Charles R. Kokesh
President, Chief Executive
Officer, Chief Financial
Officer and Chairman of
Technology Funding Inc. and
Managing General Partner of
Technology Funding Limited
