SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549

                           FORM 10-QSB
(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE 
    SECURITIES EXCHANGE ACT OF 1934

    For the quarterly period ended     March 31, 1997           
                                     ------------------

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE     
    SECURITIES EXCHANGE ACT OF 1934 

    For the transition period from            to            
                                   ----------    ----------

                   Commission File No.  814-29

                ACORN VENTURE CAPITAL CORPORATION             
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)

            Delaware                        59-2332857           
-------------------------------       -----------------------
(State or other jurisdiction of       (IRS Employer Identifi- 
incorporation or organization)              cation No.)

7020 A.C. Skinner Parkway, Jacksonville, Florida     32256      
-------------------------------------------------------------
(Address of principal executive offices)           (Zip code)


Issuer's telephone number, including area code (904) 296-1760
                                               --------------
                              N/A                                
--------------------------------------------------------------
Former name, former address and former fiscal year, 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 past 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.

          Yes      X          No             
               ----------         ----------
APPLICABLE ONLY TO CORPORATE ISSUERS:  State the number of shares
outstanding of each of the issuer's classes of common equity, as of
the latest practicable date: 5,538,906 shares of common stock, $.01
par value, as of May 14, 1997. 

<PAGE>
                     Acorn Venture Capital Corporation
                                     
                     Condensed Interim Balance Sheets
                                (Unaudited)

     
<TABLE>
<CAPTION>
                                                  March 31,    December 31,
                                                     1997           1996    
                                                ---------------------------
                                                 (Unaudited)    (Note 1)
<S>                                              <C>           <C>

Assets: 
Investments at market or fair value: 
  Investment in Recticon Enterprises, Inc. 
   (100% owned)                                  $13,900,000   $13,900,000 
  Investment in Automotive Industries, Inc. 
   (100% owned)                                    2,450,000     2,900,000 
  Investment in ServiceMax Tire & Auto 
   Centers, Inc. (100.0% owned)                            0             0 
                                                 --------------------------
                                                  16,350,000    16,800,000 

  Other common stock and warrants                     12,981        12,981 
  Certificate of Deposit                             100,000       100,000 
  Investments in U.S. Treasury bills                 718,723       250,341 
                                                 --------------------------
 Total investments (cost $13,594,345 and
  $13,122,865 at March 31, 1997 and 
  December 31, 1996, respectively)                17,181,704    17,163,322 

 Cash and cash equivalents                         1,561,537       951,782 
 Receivables from affiliates                         467,563       458,093 
 Other assets                                          4,148         4,555 
                                                 --------------------------
  Total assets                                    19,214,952    18,577,752 

 Liabilities:
  Accounts payable                                     4,000        36,445 
  Payables to affiliates                             570,000       434,000 
  Deferred income taxes                            2,461,619     1,962,619 
                                                 --------------------------
   Net assets                                    $16,179,333   $16,144,688 
                                                 ==========================



Net Assets:
  Common Stock, par value $.01 per share -
   authorized 20,000,000 shares, issued 
   5,538,906 at March 31, 1997, and              
   5,538,906 at December 31, 1996                $    55,389   $    55,389 
  Additional paid-in capital                      14,090,156    14,090,156 

Accumulated:
  Net operating losses                             1,135,252       274,607 
  Net realized losses on investments                (781,921)     (886,921)
  Net unrealized appreciation of
   investments (net of deferred
   income taxes of $1,906,902 and
   $1,429,000 at March 31, 1997 and
   December 31, 1996)                              1,680,457     2,611,457 
                                                 --------------------------
                                                   2,033,788     1,999,143 
                                                 --------------------------

Net assets applicable to outstanding 
 common shares (equivalent to $2.92 
 per share in 1997 and $2.91 per share 
 in 1996, based on outstanding common 
 shares of 5,538,906 in 1997 and 1996)           $16,179,333   $16,144,688 
                                                 ==========================

</TABLE>
See accompanying notes.

<PAGE>
                     Acorn Venture Capital Corporation

                Condensed Interim Statements of Operations
                                (Unaudited)

<TABLE>
<CAPTION>
                                                    Three Months Ended  
                                                         March 31, 
                                                   1997             1996
                                                ---------------------------
<S>                                              <C>           <C>

Investment Income: 
 Interest                                        $   18,494    $    4,226
 Dividends from affiliates                          434,000       302,500
 Consulting and management fee 
  income from affiliates                            593,500       150,000
                                                 -----------   ----------
                                                  1,045,994       456,726
                                                 -----------   ----------

Expenses: 
 Consulting fees                                      2,641         4,642
 Compensation                                       104,101       131,653
 Legal and accounting                                42,478        35,004 
 Payroll taxes                                       10,001         9,874
 Registration and exchange                            5,925         5,413
 Director fees                                        5,000         6,500
 Other                                               15,203        28,247
                                                 -----------   ----------
                                                    185,349       221,333
                                                 -----------   ----------

Net investment income                               860,645       235,393 
                                                 -----------   ----------

Realized and unrealized gains (losses)
 on investments:
   Realized gains from sales
    of investments                                  105,000             0
   Net change in unrealized appreciation 
    (depreciation) of investments                  (450,000)            0
                                                 -----------   ----------
Net realized and unrealized gains 
 (losses) on investments                           (345,000)            0
                                                 -----------   ----------
Net increase in net assets 
 resulting from operations before
 income tax provision                               515,645       235,393

Income tax provision                               (481,000)       50,000
                                                 -----------   ----------
Net increase in net assets resulting
 from operations                                 $   34,645    $  285,393 
                                                 ===========   ==========

Per share amounts:
 Net investment income                                $0.15         $0.04
 Net realized gains on investments                    $0.02         $0.00 
 Net unrealized gains (losses) on investments        ($0.08)        $0.00
 Income tax provision                                ($0.08)        $0.01
                                                 -----------   ----------
                                                      $0.01         $0.05
                                                 ===========   ==========

Weighted average number of shares 
 in per share computation                         5,665,253     5,566,427 
                                                 ===========   ==========
</TABLE>
See accompanying notes.
<PAGE>

                   Acorn Venture Capital Corporation
                                   
         Condensed Interim Statements of Changes in Net Assets
                              (Unaudited)

<TABLE>
<CAPTION>
                                                Three Months Ended
                                                     March 31,   
                                                 1997          1996    
                                             ---------------------------
<S>                                          <C>            <C>
Net investment income                        $   860,645    $   235,393 
Net realized gains on investments                105,000              -
Net increase in unrealized appreciation 
 (depreciation) of investments                  (450,000)             -
Income tax provision                            (481,000)        50,000
                                             ------------   ------------

Net increase (decrease) in assets 
 resulting from operations                        34,645        285,393 
Net assets at beginning of period             16,144,688     14,183,554
                                             ------------   ------------
Net assets at end of period                  $16,179,333    $14,468,947
                                             ============   ============
</TABLE>

See accompanying notes.

<PAGE>

                   Acorn Venture Capital Corporation
                                   
              Condensed Interim Statements of Cash Flows
                              (Unaudited)

<TABLE>
<CAPTION>
                                                Three Months Ended
                                                     March 31,    
                                                 1997          1996    
                                             ---------------------------
<S>                                          <C>            <C> 
Net cash provided by operating 
 activities                                  $   511,236    $   227,983 
                                             ------------   ------------
Investing activities:
Investment in Automotive Industries, Inc.              -       (460,330)
Purchase of U.S. Treasury bill                  (471,481)      (197,584)
Redemption of U.S. Treasury bill                       -        200,000
                                             ------------   ------------
Net cash used in investing activities           (471,481)      (457,914)
                                             ------------   ------------
Financing activities:
Proceeds from note payable to 
 Automotive Industries, Inc.                     600,000              -
Payment on note payable to Automotive
 Industries, Inc.                                (30,000)             -
                                             ------------   ------------
Net cash provided by financing activities        570,000              -
                                             ------------   ------------

Increase in cash and cash equivalents            609,755       (229,931)
Cash and cash equivalents at beginning 
 of period                                       951,782        383,563
                                             ------------   ------------
Cash and cash equivalents at end of period   $ 1,561,537    $   153,632
                                             ============   ============

</TABLE>
See accompanying notes.

<PAGE>
                   Acorn Venture Capital Corporation
                                   
                 Notes to Condensed Interim Financial
                        Statements (Unaudited)
                                   
                            March 31, 1997  
                                   
                                   
1. Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310 of
Regulation S-B.  Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.  In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included.  Operating results for the three-month period
ended March 31, 1997, are not necessarily indicative of the results that may
be expected for the year ending December 31, 1997.   For further information,
refer to the financial statements and footnotes thereto included in the
Company's annual report on Form 10-KSB for the year ended December 31, 1996.

2. Investments in and Advances to Majority Owned Companies

The Company's wholly owned investments are valued at fair value by the Board
of Directors as these investments are not readily marketable.  In determining
fair value, the Board of Directors considers a number of factors which
influence the value of the Company's investments, including current and
expected future operating performance, industry and general market and
economic trends, the competitive marketplace and other factors.  A summary of
the Company's wholly owned investments at March 31, 1997 is as follows: 

Number 
of                                               
Shares    Type of Issue and Name of User            Cost        Value
-----------------------------------------------------------------------------
100    Common stock, Recticon Enterprises, Inc. 
         100% owned.                             $3,195,750   $13,900,000

Recticon, located in Pottstown, Pennsylvania, manufactures two, three and
four-inch monocrystalline silicon wafers, which are made from silicon crystals
and are the basic substrate from which integrated circuits and other
semiconductor devices are fabricated.  Recticon's wafers are used by
university research departments and microelectronic manufacturers, and are
best suited for use in electronics devices employed in avionics,
telecommunications and computers. 

As of March 31, 1997, the Board of Directors maintained the valuation of
Recticon at $13,900,000.

During the quarter ended March 31, 1997, Recticon paid the Company
management fees totaling $118,500, and payroll expense paid to the Chairman of
the Company of $30,000. 

The following selected financial data of Recticon has been derived from
unaudited financial statements provided by Recticon.  The financial
information is of March 31, 1997 and March 31, 1996.

<TABLE>
<CAPTION>
                                             Three months ended    
                                                  March 31,         
Income Statement Data:                       1997         1996      
                                        --------------------------
                                                (Unaudited)         

<S>                                      <C>           <C>         
Net Sales                                $1,990,805    $2,438,045  
Cost of goods sold                        1,387,818     1,488,258
                                         ----------    ----------  
Gross margin                                602,987       949,787

Operating Expense                           236,059       240,224
                                         ----------    ----------  
Net income before management 
  fees and income tax                    $  366,928    $  709,563  
                                         ==========    ==========  
</TABLE>

Note:  Above figures do not include management fees of $148,500 and income tax
provision of $87,889 for the quarter ended March 31, 1997, and management fees
of $105,000 and income tax provision of $201,778 for the quarter ended March
31, 1996.

<TABLE>
<CAPTION>

                                           As of March 31, 
 Balance Sheet Data:                      1997        1996
                                        ---------------------
                                            (Unaudited)
<S>                                     <C>         <C>
Total assets                            $5,937,178  $7,602,747
                                        ==========  ==========
Total liabilities                        3,473,354   5,694,022
Stockholders equity                      2,463,824   1,908,725
                                        ----------  ----------
                                        $5,937,178  $7,602,747
                                        ==========  ==========
</TABLE>


Number 
of                                       
Shares  Type of Issue and Name of User     Cost        Value
----------------------------------------------------------------------

142    Common stock, Automotive
       Industries, Inc., 100% owned.
                                        $3,577,335   $2,450,000

Automotive, a wholly-owned Delaware corporation, located in Jacksonville,
Florida, operates 28 full-service automotive retail centers principally in
Florida and Georgia under the names of Jim Martin Tire, Wall Tire Distributors
and Mott Tire.

The Company has guaranteed the repayment by Automotive of a $900,000 loan to
Automotive pursuant to loan agreement and supply agreement with a tire
distributor.

During the quarter ended March 31, 1997, the Company received $1,075,000 from
Automotive, which amount was comprised of $475,000 in management fees and a
$600,000 note payable to Automotive.  In addition, a dividend of $434,000 was
declared to the Company to eliminate an Income Tax Benefit receivable. 

As of March 31, 1997, the Board of Directors has reduced the valuation of
Automotive to $2,450,000 due to the dividend received of $434,000 referred to
above. 

The following selected financial data of Automotive has been derived from
unaudited financial statements as of March 31, 1997 and March 31, 1996.

<TABLE>
<CAPTION>
                                                 Three months ended    
                                                      March 31,    
Income Statement Data:                            1997         1996      
                                              --------------------------
                                                      (Unaudited)         

<S>                                           <C>           <C>         
Net Sales                                     $4,560,293    $4,896,162  
Cost of goods sold                             2,004,124     2,179,507
                                              -----------   ----------- 
Gross margin                                  $2,536,169    $2,716,655

Operating expense                             $2,598,327    $2,763,272
                                              -----------   ----------- 
Net loss before management fee                ($  62,158)   ($  46,617)
                                              ===========   =========== 
</TABLE>

Note:     Above figures do not include a management fee of $475,000 for the
          quarter ended March 31, 1997.

<TABLE>
<CAPTION>
 
 Balance Sheet Data:                                      As of March 31,
                                                         1997        1996
                                                      ---------------------
                                                           (Unaudited)
<S>                                                  <C>           <C>
Total assets                                         $ 6,040,023   $ 7,316,068
                                                     ===========   ===========

Total current liabilities                            $ 2,976,574   $ 3,083,128
Total long term debt                                   2,170,025     1,250,000
Stockholders' equity                                     893,424     2,982,940
                                                     -----------   -----------
                                                     $ 6,040,023   $ 7,316,068
                                                     ===========   ===========
</TABLE>


Investments in Common Stock, Warrants, and Notes Receivable

Number 
of                                               
Shares  Type of Issue and Name of User         Cost        Value
--------------------------------------------------------------------
          Common stocks - Restricted:

 49,565   Amerinex Artificial
          Intelligence, Inc.                 $ 12,040      $  9,913

     24   Cardiac Control
          Systems, Inc.                            68            68

          Common stock warrants - Restricted:

 30,000   Aqua Care Systems,
          Inc., each entitling
          the holder to purchase
          one (1) common share 
          at $3 per share, exer-
          cisable through April 17,
          1997.                                 3,000          3,000


                                             --------       --------
                                             $ 15,108       $ 12,981 
                                             ========       ========


Face                                    
Value  Type of Issue and Name of Issuer        Cost           Value    
-------------------------------------------------------------------------

           Notes receivable - Restricted

$500,000   Note receivable from
           Digital Products Cor-
           poration, 10%, sub-
           ordinated convertible
           note, principal due on
           November 22, 1996;
           interest due semi-
           annually commencing
           May 22, 1994.                     $500,000      $      0
                                             --------      --------
                                             $500,000      $      0
                                             ========      ========
3.   Earnings Per Share

Per share amounts for the three months ended March 31, 1997 and 1996, are
based on the weighted average number of common and common equivalent shares
(stock options) outstanding in each period and is computed in accordance with
APB Opinion No. 15.

In February 1997, The Financial Accounting Standards Board issued Statement
No. 128, "Earnings per Share".  Statement No. 128 will replace APB Opinion No.
15 and is effective for periods ending after December 15, 1997.  Earlier
application is not permitted.  When effective, Statement No. 128 requires
restatement of all prior period earnings per share ("EPS") data presented.

Statement No. 128 replaces the current EPS presentation with dual presentation
of basic and diluted EPS for entities with complex capital structures, such as
the Company.  Basic EPS includes no dilution and is computed by dividing
income by the weighted average number of common shares outstanding during the
period.  Diluted EPS reflects the potential dilution of securities, such as
stock options, that could share in the earnings of an entity.  If Statement
No. 128 had been applied for the periods ended March 31, 1997 and 1996, there
would have been no change from the EPS presented in the condensed Interim
Statement of Operations and Basic EPS and diluted EPS.  

<PAGE>

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     As of March 31, 1997, the Company had cash and cash equivalents of
$1,561,537, a Certificate of Deposit for $100,000, and United States Treasury
Bills of $718,723, as compared to cash and cash equivalents of $951,782, a
Certificate of Deposit for $100,000, and United States Treasury Bills of
$250,341 at December 31, 1996.  The increase in capital resources of
$1,078,137 from December 31, 1996, was primarily the result of a loan from an
affiliate, and management fee income from affiliates.  As of March 31, 1997,
the Company had liabilities of $3,035,619 as compared to liabilities of
$2,433,064 at December 31, 1996.  


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (b)  Reports on Form 8-K:

          There were no reports on Form 8-K filed by the Company during the
quarter ended March 31, 1997.

                         SIGNATURES


     Pursuant to the requirements 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.


                         ACORN VENTURE CAPITAL CORPORATION



Date: May 15, 1997       Larry V. Unterbrink
                         ----------------------------------       
                         Larry V. Unterbrink, Treasurer
                         (Principal Financial and
                         Accounting Officer)


                         Stephen A. Ollendorff  
                         ----------------------------------      
                         Stephen A. Ollendorff,
                         Chairman, Chief Executive Officer, 
                           and Secretary