<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

[X]     Quarterly  Report pursuant to Section 13 or 15(d) of the Securities
        Exchange  Act  of  1934

        For  the  quarterly  period  ended  SEPTEMBER  30,  2001

[   ]   Transition  Report  pursuant to 13 or 15(d) of the Securities Exchange
        Act  of  1934

        For  the  transition  period to


         Commission  File  Number     000-32011
                                       ---------

                              BALSAM VENTURES, INC.

          -----------------------------------------------------------------
          (Exact name of small Business Issuer as specified in its charter)

     NEVADA                              52-2219056
-----------------------------------      -----------------------------------
(State  or  other  jurisdiction  of      (IRS  Employer Identification  No.)
incorporation  or  organization)

SUITE  12,  5880  HAMPTON  PLACE
VANCOUVER,  BRITISH  COLUMBIA,  CANADA          V6T  2E9
--------------------------------------          -------------
(Address of principal executive offices)        (Zip  Code)

Issuer's telephone number, including area code: (604) 222-2657
                                                ----------------------------

                                 NOT APPLICABLE

          ---------------------------------------------------------------
          (Former  name,  former  address  and  former  fiscal  June  30,
                          if changed since last report)

Check  whether  the issuer (1) 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 issuer was required to file such
reports),  and  (2) has been subject to such filing requirements for the past 90
days  [X]  Yes    [  ]  No

State the number of shares outstanding of each of the issuer's classes of common
stock,  as  of  the latest practicable date:  10,100,000 SHARES OF COMMON STOCK,
$0.001  PAR  VALUE  OUTSTANDING  AS  OF  NOVEMBER  10,  2001  .

                                      1

<PAGE>

                         PART 1 - FINANCIAL INFORMATION

ITEM  1.          FINANCIAL  STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance
with  the  instructions  to Form 10-QSB and Item 310 (b) of Regulation S-B, and,
therefore, do not include all information and footnotes necessary for a complete
presentation  of  financial  position,  results  of  operations, cash flows, and
stockholders'  equity  in  conformity  with  generally  accepted  accounting
principles.  In  the opinion of management, all adjustments considered necessary
for a fair presentation of the results of operations and financial position have
been  included  and  all  such  adjustments  are  of  a normal recurring nature.
Operating  results  for  the  nine  months  ended  September  30,  2001  are not
necessarily  indicative  of the results that can be expected for the year ending
December  31,  2001.

                                      2


<PAGE>






                              BALSAM VENTURES INC.
                          (A DEVELOPMENT STAGE COMPANY)


                              FINANCIAL STATEMENTS


                               SEPTEMBER 30, 2001
                                   (UNAUDITED)
                             (STATED IN U.S DOLLARS)






                                      3

<PAGE>


<TABLE>
<CAPTION>

                              BALSAM  VENTURES  INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                  BALANCE SHEET

                            (STATED IN U.S. DOLLARS)


--------------------------------------------------------------------------------
                                                   SEPTEMBER 30      DECEMBER 31
                                                      2001               2000
                                                    (unaudited)       (audited)
--------------------------------------------------------------------------------

ASSETS
<S>                                                <C>               <C>
CURRENT
  Cash                                             $   28,170        $   38,600

SOFTWARE DEVELOPMENT COSTS                              3,000             3,000
                                                   -----------------------------
                                                   $   31,170        $   41,600
================================================================================

LIABILITIES

CURRENT
  Accounts payable                                 $    3,819        $      868
                                                   -----------------------------


SHAREHOLDER'S EQUITY

SHARE CAPITAL
  Authorized:
    100,000,000 common shares, par value
    with $0.001 per share

  Issued and Outstanding:
    10,100,000 common shares                           10,100            10,100

  Additional paid in capital                           64,900            64,900

DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE      (47,649)          (34,268)
                                                   -----------------------------
                                                       27,351            40,732
                                                   -----------------------------
                                                   $   31,170        $   41,600
================================================================================
</TABLE>

                                      4

<PAGE>

<TABLE>
<CAPTION>

                                                       BALSAM  VENTURES  INC.
                                                  (A  DEVELOPMENT  STAGE  COMPANY)

                                                   STATEMENT OF LOSS AND DEFICIT
                                                            (UNAUDITED)
                                                     (STATED IN U.S. DOLLARS)


--------------------------------------------------------------------------------------------------------------------------------
                                                                   THREE       NINE        THREE         NINE       INCEPTION
                                                                  MONTHS      MONTHS       MONTHS       MONTHS      AUGUST 17
                                                                   ENDED       ENDED        ENDED        ENDED       1999 TO
                                                                SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30

                                                                   2001         2001         2000         2000          2001
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>          <C>          <C>          <C>          <C>

EXPENSES
  Consulting services                                           $         -  $         -  $         -  $         -  $   100
  Domain registration                                                     -            -            -            -       70
  Professional fees                                                   2,835       12,242        7,960       24,744   43,783
  Office and sundry                                                     410          944          198          311    1,991
  Filing and stock transfer services                                    195          195          615        1,680    1,705
                                                                --------------------------------------------------------------
NET LOSS FOR THE PERIOD                                               3,440       13,381        8,773       26,735  $47,649
                                                                                                                    ==========

DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE,
  BEGINNING OF PERIOD                                                44,209       34,268       20,888        2,926

                                                                ---------------------------------------------------
DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE,
  END OF PERIOD                                                 $    47,649  $    47,649  $    29,661  $    29,661
===================================================================================================================

NET LOSS PER SHARE                                              $      0.01  $      0.01  $      0.01  $      0.01
===================================================================================================================



WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                    10,100,000   10,100,000   10,100,000   10,100,000
===================================================================================================================

</TABLE>

                                                 5


<PAGE>
<TABLE>
<CAPTION>

                                                     BALSAM  VENTURES  INC.
                                               (A  DEVELOPMENT  STAGE  COMPANY)

                                                   STATEMENT  OF  CASH  FLOWS
                                                          (UNAUDITED)
                                                   (STATED  IN  U.S.  DOLLARS)


--------------------------------------------------------------------------------------------------------------------------------
                                                                   THREE       NINE        THREE         NINE       INCEPTION
                                                                  MONTHS      MONTHS       MONTHS       MONTHS      AUGUST 17
                                                                   ENDED       ENDED        ENDED        ENDED       1999 TO
                                                                SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30

                                                                   2001         2001         2000         2000          2001
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>          <C>          <C>          <C>          <C>

CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss for the period                                       $   (3,440)  $   (13,381) $   (8,773)  $   (26,735) $   (47,649)

ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH
  USED BY OPERATING ACTIVITIES
    Change in accounts payable                                         222         2,951      (5,249)         (435)       3,819
                                                                ----------------------------------------------------------------
                                                                    (3,218)      (10,430)    (14,022)      (27,170)     (43,830)
                                                                ----------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITY
  Software development cost                                            -             -           -          (3,000)      (3,000)
                                                                ----------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Share capital                                                        -             -           -             -         75,000
  Subscriptions receivable                                             -             -           -           2,500          -
                                                                ----------------------------------------------------------------
                                                                       -             -           -           2,500       75,000

INCREASE (DECREASE) IN CASH                                         (3,218)      (10,430)    (14,022)      (27,670)      28,170

CASH, BEGINNING OF PERIOD                                           31,388        38,600      57,224        70,872          -
                                                                ----------------------------------------------------------------

CASH, END OF PERIOD                                             $   28,170   $    28,170  $   43,202   $    43,202  $    28,170
================================================================================================================================
</TABLE>


                                                6

<PAGE>

<TABLE>
<CAPTION>

                                            BALSAM  VENTURES  INC.
                                       (A  DEVELOPMENT  STAGE  COMPANY)

                                      STATEMENT  OF  STOCKHOLDERS'  EQUITY

                                              SEPTEMBER  30,  2001
                                                   (UNAUDITED)
                                           (STATED  IN  U.S.  DOLLARS)



                                          COMMON  STOCK
                                   ============================
                                                     ADDITIONAL     SHARE
                                                      PAID-IN   SUBSCRIPTIONS
                                 SHARES      AMOUNT   CAPITAL   RECEIVABLE    DEFICIT    TOTAL
                                 ------------------------------------------------------------------

Shares issued for cash<S>        <C>         <C>      <C>       <C>           <C>        <C>
  at $0.001                       5,000,000  $ 5,000  $      -  $         -   $      -   $  5,000


Shares issued for cash at
  $0.01                           5,000,000    5,000    45,000            -          -     50,000


Shares issued for cash at
  $0.20                             100,000      100    19,900            -          -     20,000

Subscriptions receivable                  -        -         -       (2,500)         -     (2,500)

Net loss for the period                   -        -         -            -     (2,926)    (2,926)
                                 ------------------------------------------------------------------

Balance, December 31, 1999       10,100,000   10,100    64,900       (2,500)    (2,926)    69,574

Subscriptions receivable                  -        -         -        2,500          -      2,500

Net loss for the period                   -        -         -            -    (31,342)   (31,342)
                                 ------------------------------------------------------------------


Balance, December 31, 2000       10,100,000   10,100    64,900            -    (34,268)    40,732

Net loss for the period                   -        -         -            -     (1,936)    (1,936)
                                 ------------------------------------------------------------------

Balance, March 31, 2001          10,100,000   10,100    64,900            -    (36,204)    38,796

Net loss for the period                   -        -         -            -     (8,005)    (8,005)
                                 ------------------------------------------------------------------

Balance, June 30, 2001           10,100,000   10,100    64,900            -    (44,209)    30,791

                                                             7

<PAGE>

Net loss for the period                   -        -         -            -     (3,440)    (3,440)
                                 ------------------------------------------------------------------


Balance, September 30, 2001      10,100,000  $10,100  $ 64,900  $         -   $(47,649)  $ 27,351
                                 ==================================================================
</TABLE>


                                                             8

<PAGE>
                              BALSAM VENTURES INC.
                          (A DEVELOPMENT STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001
                                   (UNAUDITED)
                            (STATED IN U.S. DOLLARS)



1.     BASIS  OF  PRESENTATION

The unaudited financial statements as of September 30, 2001 included herein have
been  prepared  without  audit  pursuant  to  the  rules  and regulations of the
Securities and Exchange Commission. Certain information and footnote disclosures
normally  included  in  financial  statements prepared in accordance with United
States  generally accepted principles have been condensed or omitted pursuant to
such  rules  and  regulations.  In  the  opinion  of management, all adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation  have  been  included.  It  is  suggested  that  these  financial
statements  be  read  in  conjunction  with  December 31, 2000 audited financial
statements  and  notes  thereto.


2.     NATURE  OF  OPERATIONS

a)     Organization

The Company was incorporated in the State of Nevada, U.S.A., on August 17, 1999.

b)     Development  Stage  Activities

The Company plans to launch a free information Website to assist and attract the
people  wanting  information on immigration to the USA. The Company plans to use
the  Website  to  earn income from companies who are prepared to pay to have Web
advertising  in  the  form  of  a button or banners on the Website selling their
products or services. The Company plans to solicit advertisers who are targeting
sales  of  their  products  and  services at people using the Company's website.


3.     SIGNIFICANT  ACCOUNTING  POLICIES

The  financial  statements  of the Company have been prepared in accordance with
generally  accepted  accounting  principles  in  the  United  States.  Because a
precise  determination  of  many assets and liabilities is dependent upon future
events,  the  preparation  of  financial  statements  for  a  period necessarily
involves  the  use  of  estimates  which have been made using careful judgement.

The  financial  statements have, in management's opinion, been properly prepared
within  reasonable  limits  of  materiality  and  within  the  framework  of the
significant  accounting  policies  summarized  below:

                                       9

<PAGE>
                              BALSAM VENTURES INC.
                          (A DEVELOPMENT STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001
                                   (UNAUDITED)
                            (STATED IN U.S. DOLLARS)



3.     SIGNIFICANT  ACCOUNTING  POLICIES  (Continued)

a)     Development  Stage  Company

The  Company  is  a  developed  stage  company  as  defined in the Statements of
Financial  Accounting Standards No. 7. The Company is devoting substantially all
of  its  present  efforts  to  establish  a new business and none of its planned
principal operations have commenced. All losses accumulated since inception have
been  considered  as  part  of  the  Company's  development  stage  activities.

b)     Use  of  Estimates

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities,  and disclosure of
contingent  assets  and liabilities at the date of the financial statements, and
the  reported  amounts of revenues and expenses for the reporting period. Actual
results  could  differ  from  these  estimates.

c)     Software  Development  Costs

Software development costs represent capitalized costs of design, configuration,
coding,  installation  and  testing  of  the Company's website up to its initial
implementation.  Upon implementation the asset will be amortized to expense over
its  estimated  useful  life  of  three  years  using  the straight line method.
Ongoing  website  post-implementation costs of operation, including training and
application  maintenance,  will  be  charged  to  expense  as  incurred.

d)     Income  Taxes

The  Company  has  adopted Statement of Financial Accounting Standards No. 109 -
"Accounting  for  Income Taxes" (SFAS 109). This standard requires the use of an
asset  and  liability  approach for financial accounting and reporting on income
taxes.  If it is more likely than not that some portion or all if a deferred tax
asset  will  not  be  realized,  a  valuation  allowance  is  recognized.

e)     Financial  Instruments

The  Company's  financial  instruments  consist  of  cash  and accounts payable.

Unless  otherwise  noted,  it  is  management's opinion that this Company is not
exposed  to  significant  interest  or credit risks arising from these financial
instruments.  The  fair  value  of these financial instruments approximate their
carrying  values,  unless  otherwise  noted.

                                      10

<PAGE>
                              BALSAM VENTURES INC.
                          (A DEVELOPMENT STAGE COMPANY)

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001
                                   (UNAUDITED)
                            (STATED IN U.S. DOLLARS)



3.      SIGNIFICANT  ACCOUNTING  POLICIES  (Continued)

f)     Net  Loss  Per  Share

Net  loss  per  share  is calculated using the weighted average number of common
shares  outstanding  during  the  period.  Fully  diluted  loss per share is not
presented,  as  the  impact  of  the  exercise  of  options  is  anti-dilutive.



                                      11

<PAGE>

Item  2.     Management's  Discussion  and  Analysis  or  Plan  of  Operations

FORWARD  LOOKING  STATEMENTS

This  report  on  Form 10-QSB contains certain forward-looking statements within
the meaning of section 21(e) of the Securities Exchange Act of 1934, as amended,
and  other  applicable securities laws.  All statements other than statements of
historical  fact  are  "forward-looking  statements"  for  purposes  of  these
provisions,  including any projections of earnings, revenues, or other financial
items; any statements of the plans, strategies, and objectives of management for
future  operation; any statements concerning proposed new products, services, or
developments,  any  statements  regarding  future  economic  conditions  or
performance,  statements  of belief, and any statement of assumptions underlying
any  of  the foregoing.  Such forward-looking statements are subject to inherent
risks  and  uncertainties, and actual results could differ materially from those
anticipated  by  the  forward-looking  statements.

OVERVIEW

Our  business  plan  is  to  develop  and  market a free immigration information
service  on  the  Internet from our "" web site.  We will design our web site to
provide  information  on  the  process  of immigrating to the United States from
foreign countries.  Our target users will be persons who are citizens of foreign
countries  seeking  to work in or immigrate to the United States.  Our objective
is  to  become  a leading web site for information on the process of immigrating
into  the  United  States.

We  acquired  our "" domain name through the domain name registration process in
October  1999  at a cost of $70.  The website is currently under development and
is  thus  not  operational  at  this  time.  Once development of our web site is
complete,  we  plan  to  sell advertising.  We plan to solicit advertisers whose
target  market  includes  the  users  of  our  web  site.

Our  web  site  is  still  in a conceptual stage of development and will require
substantial  development before we are able to operate it on a commercial basis.
Accordingly,  our  business  operations  are in a start-up phase and we have not
earned  any  revenues  to  date.

PLAN  OF  OPERATIONS

Our  plan  of  operations  for  the  twelve  months is to complete the following
objectives  within the time period specified, subject to our obtaining financing
for  the  development  and  marketing  of  our  web  site:

(1)     Complete  development  of  the  web  site.  We  anticipate  that  this
development will be completed by December, 2001.  We anticipate that the cost of
this  development  will  be  approximately  $2,500.

(2)     Complete  research  of information on immigration into the United States
for posting on our web site.  We anticipate that this research will be completed
by  December 2001. We anticipate that the costs of this development expense will
be  approximately  $2,500.

(3)     We  plan  to  undertake  an  advertising and marketing campaign once the
development  of  our web site is complete.  We anticipate that the cost of these
marketing  expenses  will  be  approximately  $5,000.

                                      12

<PAGE>


(4)     We  anticipate  spending  approximately  $6,000 on ongoing operating and
administrative  expenses.  We anticipate that our monthly operating costs of our
Web  site  will  be  approximately  $500 per month.  We also anticipate spending
approximately  $500  per  month  on  maintaining the accuracy of the immigration
information  on  our  web  site.

RESULTS  OF  OPERATIONS

We did not earn any revenues during the period ending September 30, 2001.  We do
not  anticipate  earning  revenues until such time as the development of our web
site is completed and we commence sales of advertising.  We are presently in the
development  stage and we can provide no assurance that we will be successful in
completing  development  of  our  web site or earning revenues from our web site
once  development  is  complete.

We  incurred  operating  expenses  in  the amount of $13,381 for the nine months
ended  September  30,  2001  as  compared  to  $26,735 for the nine months ended
September  30,  2000.  For  the period ended September 30, 2001, these operating
expenses were comprised primarily of professional fees in the amount of $12,242.
We  also  incurred  office and sundry expenses in the amount of $944 during this
period.

We incurred a loss of $13,381 for the nine months ended September 30, 2001.  Our
net  loss  was  attributable  entirely  to  our  operating  expenses.

FINANCIAL  CONDITION

LIQUIDITY  AND  FINANCIAL  CONDITION

We  had  cash  of  $28,170  as  of  September  30,  2001.

PLAN  OF  OPERATIONS

We  anticipate  that we will be spending approximately $22,000 over twelve month
period  following September 30, 2001 pursuing our stated plan of operations.  Of
these  anticipated  expenditures, we anticipate that $5,000 will be spent on our
plan  of  operations  over  the  six  months  following  September  30,  2001.

We  anticipate that our present cash reserves are sufficient for us to carry out
our  plan  of  operations  without additional financing for approximately twelve
months  following  September  30,  2001.  We  anticipate  that  we  may  require
additional  financing  in order to pursue our business plan if: (a) the costs of
implementing  our  business  plan  are  greater  than anticipated; or (b) we are
unsuccessful  in earning sufficient revenues after commencement of operations in
order  to  sustain  continued  operations.  We  anticipate that if we pursue any
additional  financing,  the  financing  would  be  an  equity financing achieved
through  the  sale of our common stock.  We do not have any arrangement in place
for  any debt or equity financing.  If we are successful in completing an equity
financing,  existing  shareholders will experience dilution of their interest in
our  company.  In  the  event  we are not successful in obtaining such financing
when  necessary,  we  may  not  be  able  to  proceed  with  our  business plan.

Our  actual expenditures and business plan may differ from the one stated above.
Our  board of directors may decide not to pursue this plan.  In addition, we may
modify  the  plan  based  on  available  financing.

                                      13

<PAGE>

We  anticipate  continuing  operating losses in the foreseeable future.  We base
this  expectation  in  part on the fact that we will incur substantial operating
expenses  in  completing  our  stated plan of operations before we will have the
opportunity  to  earn revenues.  Our future financial results are also uncertain
due to a number of factors, many of which are outside our control. These factors
include,  but  are  not  limited  to:

(1)     our  ability to develop a commercially marketable Internet web site with
information  and  features  sought  by  Internet  users  desiring information on
immigration  to  the  United  States;
(2)     our  ability to successfully market our web site to our potential users;
(3)     our  ability  to successfully market our web site to advertisers who are
prepared  to  pay  for  advertising  on  our  site;
(4)     the  introduction  of  competing  web  sites  and  services.

                                      14


<PAGE>


PART  II  -  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

     None

ITEM  2.  CHANGES  IN  SECURITIES

     None

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

     None

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

     None

ITEM  5.  OTHER  INFORMATION

     None

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

EXHIBITS

     99.1     Risk  Factors

REPORTS  ON  FORM  8-K

     None


                                      15

<PAGE>



                                   SIGNATURES

In  accordance with the requirements of the Securities and Exchange Act of 1934,
the  Registrant  has  duly  caused this report to be signed on its behalf by the
undersigned,  thereunto  duly  authorised.

BALSAM  VENTURES,  INC.

Date:     NOVEMBER  8,  2001


By:  /s/ Robert Smith
     ----------------------------------
     ROBERT  SMITH,
     PRESIDENT, SECRETARY AND TREASURER