<PAGE>
                              UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  20549

                               FORM 10-K

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
                          EXCHANGE ACT OF 1934

                  For The Year Ended December 31, 1998

                                   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. 0-15766 

                TECHNOLOGY FUNDING SECURED INVESTORS I 
         ------------------------------------------------------
         (Exact name of Registrant as specified in its charter)

          CALIFORNIA                            94-2944800
-------------------------------    ------------------------------------
(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)

Securities registered pursuant to Section 12(b) of the Act:  None
Securities registered pursuant to Section 12(g) of the Act:  Limited
 Partnership Units

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   
                                                               ---   ---

Indicate by check mark if disclosure of delinquent filers pursuant to 
Item 405 of Regulation S-K is not contained herein, and will not be 
contained, to the best of registrant's knowledge, in definitive proxy or 
information statements incorporated by reference in Part III of this Form 
10-K or any amendment to this Form 10-K.                           [ ]

No active market for the units of limited partnership interests ("Units") 
exists, and therefore the market value of such Units cannot be 
determined.

Documents incorporated by reference:  Portions of the Prospectus dated 
May 5, 1986, forming a part of Registration Statement No. 2-96022 under 
the Securities Act of 1933 are incorporated by reference in Parts I and 
III, hereof.  Portions (pages 23 to 25) of the Prospectus of Technology 
Funding Venture Capital Fund VI, LLC, as revised June 4, 1998 (accession 
number 0000950133-98-002220), forming a part of the December 5, 1997, 
Pre-Effective Amendment No. 1 to the Form N-2 Registration Statement No. 
333-23913 dated July 11, 1997, are incorporated by reference in Part III 
hereof.

<PAGE>
                                   PART I

Item 1.  BUSINESS
------   --------

Technology Funding Secured Investors I (hereinafter referred to 
as the "Partnership" or the "Registrant") was formed as a 
California limited partnership on August 31, 1984.  The business 
of the Partnership is to provide secured loans and to acquire 
equity interests in new and developing companies as described in 
the "Summary of the Offering" and "Business of the Partnership" 
sections of the Prospectus dated May 5, 1986, that forms a part 
of Registrant's Form S-1 Registration Statement No. 2-96022, 
which sections are incorporated herein by reference.  Additional 
characteristics of the Partnership's business are discussed in 
the "Risk Factors" and "Conflicts of Interest" sections of the 
Prospectus, which sections are also incorporated herein by 
reference.  The Partnership's Amended and Restated Limited 
Partnership Agreement ("Partnership Agreement") provides that the 
Partnership will continue until December 31, 2004, unless 
dissolved earlier.

Item 2.  PROPERTIES
------   ----------

The Registrant has no material physical properties.

Item 3.  LEGAL PROCEEDINGS
------   -----------------

There are no material pending legal proceedings to which the 
Registrant is party or of which any of its property is the 
subject, other than routine litigation incidental to the 
business of the Partnership.

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------   ---------------------------------------------------

No matter was submitted to a vote of the holders of units of 
limited partnership interests ("Units") during 1998.

                                    PART II

Item 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
------   -------------------------------------------------------------
         MATTERS
         -------

(a)  There is no established public trading market for the 
Units.

(b)  At December 31, 1998, there were 5,778 record holders of 
Units.

(c)  The Registrant, being a partnership, does not pay 
dividends.  Cash distributions, however, may be made to the 
partners in the Partnership pursuant to the Registrant's 
Partnership Agreement.



Item 6.  SELECTED FINANCIAL DATA
------   -----------------------
<TABLE>
<CAPTION>
                                          For the Years Ended and As of December 31,
                                ------------------------------------------------------------
                                 1998         1997          1996         1995          1994
                                ------       ------        ------       ------        ------
<S>                        <C>           <C>           <C>          <C>           <C>
Total income                  $    287        4,710        28,460      188,104       156,925
Net operating loss            (416,929)    (412,216)     (342,248)    (791,505)     (446,132)
Net realized gain from sales
 of equity investments          55,079      142,895        30,189      540,349       355,016
Realized losses from
 investment write-downs        (11,178)          --        (5,000)  (2,988,395)     (514,251)
Recoveries from investments
 previously written off             --        9,497            --           --        45,290
Net realized loss             (373,028)    (259,824)     (317,059)  (3,239,551)     (560,077)
Change in net unrealized
 fair value:
  Equity investments          (191,770)    (179,453)       96,606    2,389,463    (2,127,420)
  Secured notes receivable   1,813,000           --      (185,000)     (20,000)      549,000
Net income (loss)            1,248,202     (439,277)     (405,453)    (870,088)   (2,138,497)
Net realized loss 
 per Unit                           (3)          (2)           (3)         (28)           (5)
Total assets                 2,106,296      653,520     1,047,088    1,900,971     2,270,238

Refer to financial statement notes entitled "Summary of Significant Accounting Policies" and 
"Allocation of Profits and Losses" for a description of the method of calculation for net 
realized income (loss) per Unit.
</TABLE>



Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
------   -----------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------

Liquidity and Capital Resources
-------------------------------

In 1998, net cash used by operating activities totaled $199,416.  
The Partnership reimbursed related parties for operating 
expenses of $139,700.  Other operating expenses of $60,003 were 
paid and interest income of $287 was received.  During 1998, 
proceeds from investment sales totaled $138,368.

Beginning in 1991, the Partnership entered the liquidation stage 
and began to distribute its available cash.  The Partnership has 
distributed a major portion of its available cash and is now at 
the stage in its liquidation process where future distributions 
are primarily dependent on loan repayments and equity investment 
sales.

Cash and cash equivalents at December 31, 1998, were $7,020. 
Repayments of secured notes receivable, proceeds from sales of 
equity investments, and Managing General Partner's support are 
expected to be sufficient to fund Partnership operations through 
the next twelve months.

Results of Operations
---------------------

1998 compared to 1997
---------------------

Net income for 1998 was $1,248,202 as compared to a net loss of 
$439,277 in 1997.  The improvement was primarily a result of a 
$1,813,000 increase in the fair value of secured notes 
receivable, partially offset by an $87,816 decrease in net 
realized gain from sales of equity investments and an $86,883 
increase in operating expenses.

The Partnership recorded a $1,813,000 increase in the fair value 
of secured notes receivable in 1998 which was primarily due to 
an increase in expected loan repayments resulting from the 
improved financial condition of borrowing companies in the 
computer and computer equipment and industrial/business 
automation industries.  There was no change in the fair value of 
secured notes receivable in 1997.

Net realized gain from sale of equity investments totaled 
$55,079 and $142,895 in 1998 and 1997, respectively.  The 1998 
realized gain resulted from the sale of stock in Celeritek, Inc.  
The realized gain in 1997 resulted from sales of stock in 
Celeritek, Inc., Etec Systems, Inc., Photon Dynamics, Inc., and 
3Com Corporation.

Total operating expenses were $410,570 and $323,687 in 1998 and 
1997, respectively.  As disclosed in Note 3 to the financial 
statements, the Managing General Partner re-evaluated 
allocations to the Partnership in 1998 and determined that they 
had not fully recovered allocable operating expenses, primarily 
salary, benefits, and professional fees as permitted by the 
Partnership agreement.  As a result, the Partnership was charged 
$110,142 of additional operating expenses in 1998 of which 
$12,302 and $97,840 related to 1997 and prior years, 
respectively.  If the additional expense had been recorded in 
prior years, total operating expenses would have been $300,428 
and $335,989 for 1998 and 1997, respectively.

Given the inherent risk associated with the business of the 
Partnership, the future performance of portfolio company 
investments may significantly impact future operations.

1997 compared to 1996
---------------------

Net losses for 1997 and 1996 were $439,277 and $405,453, 
respectively.  The increased loss was primarily due to a $91,059 
decrease in the change in fair value of investments and a 
$42,685 increase in operating expenses, partially offset by a 
$112,706 increase in realized gain from sales of equity 
investments.

The Partnership recorded a $179,453 decrease in the fair value 
of investments in 1997 which was primarily due to the sale of 
investments in which the gain was realized.  During 1996, the 
Partnership recorded an increase of $96,606 in equity investment 
fair value primarily due to increases in the medical, 
microelectronics, and telecommunications industries, partially 
offset by decreases in the industrial/business automation 
industry.  In 1996, the Partnership also recorded a decrease in 
secured notes receivable fair value of $185,000 based upon the 
level of loan loss reserves deemed required by the Managing 
General Partner.

Total operating expenses were $323,687 and $281,002 in 1997 and 
1996, respectively.  As disclosed in Note 3 to the financial 
statements, the 1996 operating expenses included expense 
reimbursements of $46,290.  Had the reimbursements not occurred, 
the 1997 and 1996 total operating expenses would have been 
$323,687 and $327,292, respectively.  Included in 1997 operating 
expenses are the costs of the Partnership's relocation of its 
administrative and investor service operations to Santa Fe, New 
Mexico.

The $142,895 net realized gain from sales of equity investments 
in 1997 resulted from the sales of stock in Celeritek, Inc., 
Etec Systems, Inc., Photon Dynamics, Inc., and 3Com Corporation.  
In 1996, the realized gain of $30,189 primarily resulted from 
the sale of Hybridon, Inc. stock.


YEAR 2000
---------

Widespread use of computer programs that use two digits rather 
than four to store, calculate, and display year values in dates 
may cause computer systems to malfunction in the year 2000, 
resulting in significant business delays and disruptions.

The Partnership's State of Readiness
------------------------------------

Computer services are provided to the Partnership by its 
Managing General Partner, Technology Funding Inc. ("TFI".)  For 
several years, TFI has sought to use Year 2000 compliant storage 
formats and algorithms in its internally-developed and 
maintained systems.  TFI has also completed initial evaluations 
of computer systems, software, and embedded technologies.  Those 
evaluations confirmed that certain components of its network 
server hardware and operating systems, voice mail system, e-mail 
system, and accounting software may have Year 2000 compliance 
issues.  These resources and several less-critical components of 
the systems environment were all scheduled as part of normal 
maintenance and replacement cycles to be replaced or upgraded as 
Year 2000 compatible components became available from vendors 
during 1998 and 1999.  That program remains on schedule to 
provide Year 2000 capable systems timely without significant 
expenditures or disruption of Partnership operations.  However, 
the risk remains that TFI may not be able to verify whether Year 
2000 compatibility claims by vendors are accurate, or whether 
changes undertaken to achieve Year 2000 compatibility will 
create other undetected problems in associated systems.  
Therefore, TFI anticipates that Year 2000 compliance testing and 
maintenance of these systems will continue as needed into the 
first quarter of 2000.  

As part of Year 2000 evaluation, TFI has also assembled a 
database listing its significant suppliers to assess the extent 
to which it needs to prepare for any of those parties' potential 
failure to remediate their Year 2000 compliance issues.  TFI is 
reviewing public Year 2000 statements of those suppliers and 
preparing questionnaires to be sent to mission-critical vendors 
whose public statements were not adequate for assessment.  TFI 
will continue to monitor its significant suppliers as part of 
its Year 2000 evaluation.  However, there can be no guarantee 
that the systems of other companies on which TFI relies will be 
timely converted, or that failure to convert will not have a 
material adverse effect on the Partnership and its operations.  
TFI is also working with the Partnership's portfolio companies 
to determine the extent to which their operations are vulnerable 
to Year 2000 issues.  There can be no guarantee that the systems 
of portfolio companies in which the Partnership has invested 
will be timely converted, or that their failure to convert will 
not have a material adverse effect on the Partnership.  


The Cost to Address Year 2000 Issues
------------------------------------

Expenditures in 1998 related to Year 2000 issues were not 
material to the Partnership's financial statements.  TFI expects 
that additional expenditures for Year 2000 compliance will not 
be material to the Partnership.  

The Risks Associated with Year 2000 Issues
------------------------------------------

Any failure by the portfolio companies in which the Partnership 
has invested, or by those portfolio companies' key suppliers or 
customers, to anticipate and avoid Year 2000 related problems at 
reasonable cost could have a material adverse effect on the 
value of and/or the timing of realization of value from the 
Partnership's investments.  If Year 2000 compliance issues are 
not resolved by December 31, 1999, internal system failures or 
miscalculations could cause a temporary inability to process 
transactions, loss of ability to send or receive e-mail and 
voice mail messages, or disruptions in other normal business 
activities.  Additionally, failure of third parties on whom TFI 
relies to remediate their Year 2000 issues timely could result 
in disruptions in the Partnership's relationship with its 
financial institutions, temporary disruptions in processing 
transactions, unanticipated costs, and problems related to the 
Partnership's daily operations.  While TFI continues to address 
its internal Year 2000 issues, until TFI receives and evaluates 
responses from a significant number of its suppliers, the 
overall risks associated with the Year 2000 issue remain 
difficult to describe and quantify.  There can be no guarantee 
that the Year 2000 issue will not have a material adverse effect 
on the Partnership and its operations.

TFI's Contingency Plan
----------------------

As part of its normal efforts to assure business continuation in 
the event of natural disasters, systems failures, or other 
disruptions, TFI has prepared contingency plans including an 
extensive Year 2000 contingency plan.  Taken together with TFI's 
Year 2000 remediation plan, it identifies potential points of 
failure, approaches to correcting known Year 2000 problems, 
dates by which the preferred corrections are anticipated to be 
made and tested, and alternative approaches if the corrections 
are not completed timely or are later found to be inadequate.  
Although backup systems and contingency approaches have been 
identified for most mission-critical systems and vendor 
dependencies, there remain some systems for which no good 
alternative exists, and there may be some problems that prove 
more intractable than currently anticipated.  


Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
------   -------------------------------------------

The financial statements of the Registrant are set forth in Item 
14.

Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
------   -----------------------------------------------------------
AND FINANCIAL DISCLOSURE
------------------------

None

                                    PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
-------  --------------------------------------------------

As a partnership, the Registrant has no directors or executive 
officers.  Technology Funding Ltd., a California limited 
partnership ("TFL"), and Technology Funding Inc., a California 
corporation ("TFI"), and wholly owned subsidiary of TFL, are the 
General Partners of the Partnership.  TFI is the Managing 
General Partner.  Information concerning the ownership of TFL 
and the business experience of the key officers of TFI and the 
partners of TFL is incorporated by reference from the sections 
entitled "Management of the Partnership - The General Partners" 
and "Management of the Partnership - Key Personnel" in the 
Prospectus, which are incorporated herein by reference.  Changes 
in this information that have occurred since the date of the 
Prospectus are included on pages 23 to 25 in the Technology 
Funding Venture Capital Fund VI, LLC Prospectus, as revised June 
4, 1998 (accession number 0000950133-98-002220), forming a part 
of the December 5, 1997, Pre-Effective Amendment No. 1 to the 
Form N-2 Registration Statement No. 333-23913, dated July 11, 
1997, which is incorporated herein by reference.

Item 11. EXECUTIVE COMPENSATION
-------  ----------------------

As a partnership, the Registrant has no officers or directors.  
In 1998, the Partnership incurred $6,646 in management fees.  
The management fees are designed to compensate the General 
Partners for General Partner Overhead incurred in performing 
management duties for the Partnership through December 31, 1998.  
General Partner Overhead includes the General Partners' share of 
rent and utilities, and certain salaries and benefits paid by 
the General Partners in performing their obligations to the 
Partnership.


Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
-------  --------------------------------------------------------------

Not applicable.  No Limited Partner beneficially holds more than 
5% of the aggregate number of Units held by all Limited 
Partners, and neither the General Partners nor any of their 
officers, directors or partners own any Units.  The General 
Partners control the affairs of the Partnership pursuant to the 
Partnership Agreement.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
-------  ----------------------------------------------

The Registrant, or its investee companies, have engaged in no 
transactions with the General Partners or their officers and 
partners other than as described above, in the notes to the 
financial statements, or in the Prospectus.

                                    PART IV

Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON 
-------  -------------------------------------------------------
FORM 8-K
--------

(a) List of Documents filed as part of this Annual Report on   
Form 10-K

(1) Financial Statements - the following financial 
statements are filed as a part of this Report:

Independent Auditors' Report                          
Balance Sheets as of December 31, 1998 and 1997       
Statements of Operations for the years ended 
December 31, 1998, 1997 and 1996                     
Statements of Partners' Capital for the years ended
December 31, 1998, 1997 and 1996                     
Statements of Cash Flows for the years ended
December 31, 1998, 1997 and 1996                 
Notes to Financial Statements                      

(2) Financial Statement Schedules

All schedules have been omitted because they are not 
applicable or the required information is included in 
the financial statements or the notes thereto.

(3) Exhibits

Registrant's Amended and Restated Limited Partnership 
Agreement (incorporated by reference to Exhibit A to 
Registrant's Prospectus dated May 5, 1986, included in 
Registration Statement No. 2-96022 filed pursuant to 
Rule 424(b) of the General Rules and Regulations under 
the Securities Act of 1933).

(b)  Reports on Form 8-K

No reports on Form 8-K were filed by the Registrant during 
the year ended December 31, 1998.

(c)  Financial Data Schedule for the year ended and as of 
December 31, 1998 (Exhibit 27).


<PAGE>


                     INDEPENDENT AUDITORS' REPORT
                     ----------------------------


The Partners
Technology Funding Secured Investors I:


We have audited the accompanying balance sheets of Technology Funding 
Secured Investors I (a California limited partnership) as of December 31, 
1998 and 1997, and the related statements of operations, partners' 
capital, and cash flows for each of the years in the three-year period 
ended December 31, 1998.  These financial statements are the 
responsibility of the Partnership's management.  Our responsibility is to 
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards.  Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are 
free of material misstatement.  An audit includes examining, on a test 
basis, evidence supporting the amounts and disclosures in the financial 
statements.  Our procedures included confirmation of certain loans and 
securities owned, by correspondence with the individual borrowing and 
investee companies, and a physical examination of securities held by a 
safeguarding agent as of December 31, 1998 and 1997.  An audit also 
includes assessing the accounting principles used and significant 
estimates made by management, as well as evaluating the overall financial 
statement presentation.  We believe that our audits provide a reasonable 
basis for our opinion.

In our opinion, the financial statements referred to above present 
fairly, in all material respects, the financial position of Technology 
Funding Secured Investors I as of December 31, 1998 and 1997, and the 
results of its operations and its cash flows for each of the years in the 
three-year period ended December 31, 1998, in conformity with generally 
accepted accounting principles.



Albuquerque, New Mexico
March 26, 1999                                               /S/KPMG LLP


<PAGE>
BALANCE SHEETS
--------------
<TABLE>
<CAPTION>
                                                        December 31,
                                               ---------------------------
                                                  1998             1997
                                                 ------           ------
<S>                                         <C>                 <C>
ASSETS

Investments:
 Secured notes receivable, net (cost
  basis of $725,224 in 1998 and 1997)        $2,098,224           285,224
 Equity investments (cost basis of
  $166,729 and $261,196 in 1998 and 
  1997, respectively)                                 0           286,237
                                              ---------           -------
     Total investments                        2,098,224           571,461

Cash and cash equivalents                         7,020            68,068

Other assets                                      1,052            13,991
                                              ---------           -------
     Total assets                            $2,106,296           653,520
                                              =========           =======

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses        $   37,614            28,302

Due to related parties                          307,403           111,334

Other liabilities                                   244             1,051
                                              ---------           -------
     Total liabilities                          345,261           140,687

Commitments, contingencies, and subsequent
 event (Notes 3, 5, and 10)

Partners' capital:
 Limited Partners
  (Units outstanding of 106,990 in 1998
  and 1997)                                     607,110           976,408
 General Partners                               (52,346)          (48,616)
 Net unrealized fair value increase
 (decrease) from cost:
   Secured notes receivable                   1,373,000          (440,000)
   Equity investments                          (166,729)           25,041
                                              ---------           -------
     Total partners' capital                  1,761,035           512,833
                                              ---------           -------
    Total liabilities and partners' capital  $2,106,296           653,520
                                              =========           =======
</TABLE>
See accompanying notes to financial statements

<PAGE>
STATEMENTS OF OPERATIONS 
------------------------
<TABLE>
<CAPTION>
                                        For the Years Ended December 31,
                                      -----------------------------------
                                        1998         1997          1996
                                       ------       ------        ------
<S>                               <C>           <C>           <C> 
Income:
 Short-term investment interest    $      287        4,710        24,610
 Secured notes receivable
  interest                                 --           --         3,850
                                    ---------      -------       -------
     Total income                         287        4,710        28,460

Costs and expenses:
 Management fees                        6,646       16,334        25,365
 Other investment expenses                 --       76,905        64,341
 Operating expenses:
   Administrative and investor
    services                          288,569      200,813       170,359
   Lending operations and
    investment management              37,453       32,109         9,298
   Computer services                   25,311       48,220        62,872
   Professional fees                   59,237       42,545        38,473
                                    ---------      -------       -------
     Total operating expenses         410,570      323,687       281,002
                                    ---------      -------       -------

     Total costs and expenses         417,216      416,926       370,708
                                    ---------      -------       -------
Net operating loss                   (416,929)    (412,216)     (342,248)

 Net realized gain from sales of
  equity investments                   55,079      142,895        30,189
 Realized losses from
  investment write-downs              (11,178)          --        (5,000)
 Recoveries from investments
  previously written off                   --        9,497            --
                                    ---------      -------       -------
Net realized loss                    (373,028)    (259,824)     (317,059)

 Change in net unrealized fair
  value:
   Equity investments                (191,770)    (179,453)       96,606
   Secured notes receivable         1,813,000           --      (185,000)
                                    ---------      -------       -------

Net income (loss)                  $1,248,202     (439,277)     (405,453)
                                    =========      =======       =======
Net realized loss
   per Unit                        $       (3)          (2)           (3)
                                    =========      =======       =======
</TABLE>
See accompanying notes to financial statements.

<PAGE>
STATEMENTS OF PARTNERS' CAPITAL 
-------------------------------
<TABLE>
<CAPTION>
For the years ended December 31, 1998, 1997 and 1996:
                                                             Net Unrealized Fair
                                                               Value Increase
                                                            (Decrease) From Cost
                                                           -----------------------
                                   Limited      General      Equity   Secured Notes
                                  Partners     Partners    Investments  Receivable    Total
                                  --------     --------    -----------  ----------    -----
<S>                              <C>          <C>        <C>         <C>          <C>

Partners' capital,
 December 31, 1995                $1,580,542   (42,847)     107,888    (255,000)   1,390,583

Repurchase of limited  
 partnership interests               (12,418)       --           --          --      (12,418)

Net realized loss                   (313,888)   (3,171)          --          --     (317,059)

Change in net unrealized fair 
 value:
  Equity investments                      --        --       96,606          --       96,606
  Secured notes receivable                --        --           --    (185,000)    (185,000)
                                   ---------    ------      -------   ---------    ---------

Partners' capital,
 December 31, 1996                 1,254,236   (46,018)     204,494    (440,000)     972,712

Repurchase of limited  
 partnership interests               (20,602)       --           --          --      (20,602)

Net realized loss                   (257,226)   (2,598)          --          --     (259,824)

Change in net unrealized fair 
 value:
  Equity investments                      --        --     (179,453)         --     (179,453)
  Secured notes receivable                --        --           --          --           --
                                   ---------    ------      -------   ---------    ---------
Partners' capital,
 December 31, 1997                   976,408   (48,616)      25,041    (440,000)     512,833

Net realized loss                   (369,298)   (3,730)          --          --     (373,028)

Change in net unrealized fair 
 value:
  Equity investments                      --        --     (191,770)         --     (191,770)
  Secured notes receivable                --        --           --   1,813,000    1,813,000
                                   ---------    ------      -------   ---------    ---------
Partners' capital,
 December 31, 1998                $  607,110   (52,346)    (166,729)  1,373,000    1,761,035
                                   =========    ======      =======   =========    =========

</TABLE>
See accompanying notes to financial statements.

<PAGE>

STATEMENTS OF CASH FLOWS
------------------------
<TABLE>
<CAPTION>
                                      For the Years Ended December 31,
                                    -----------------------------------
                                      1998         1997          1996
                                     ------       ------        ------
<S>                               <C>            <C>          <C>
Cash flows from operating
  activities:
 Interest received                  $    287        4,710       28,460
 Cash paid to vendors                (60,003)    (188,906)    (191,554)
 Cash paid to related parties       (139,700)    (172,619)    (665,289)
 Cash received from affiliated
  partnerships                            --        4,340        3,977
 Reimbursements of collection
  expenses from portfolio
  companies                               --           --       46,290
                                     -------      -------      -------
  Net cash used by
   operating activities             (199,416)    (352,475)    (778,116)
                                     -------      -------      -------

Cash flows from investing
  activities:
 Secured notes receivable issued          --       (4,500)     (50,902)
 Repayments of secured notes 
  receivable                              --           --      162,764
 Proceeds from sales of equity
  investments                        138,368      175,196       31,439
 Recoveries from investments 
  previously written off                  --        9,497           --
 Purchase of equity investments           --      (30,500)      (3,300)
                                     -------      -------      -------

  Net cash provided by investing
   activities                        138,368      149,693      140,001
                                     -------      -------      -------

Cash flows from financing 
  activities:
 Repurchase of limited 
  partnership interests                   --      (20,602)     (12,418)
                                     -------      -------      -------

  Net cash used by financing
   activities                             --      (20,602)     (12,418)
                                     -------      -------      -------
Net decrease in cash and cash
 equivalents                         (61,048)    (223,384)    (650,533)


STATEMENTS OF CASH FLOWS (continued)
-----------------------------------

</TABLE>
<TABLE>
<CAPTION>
                                      For the Years Ended December 31,
                                    -----------------------------------
                                      1998         1997          1996
                                     ------       ------        ------
<S>                               <C>            <C>          <C>
Cash and cash equivalents at 
 beginning of year                    68,068      291,452      941,985
                                   ---------      -------      -------

Cash and cash equivalents at 
 end of year                      $    7,020       68,068      291,452
                                   =========      =======      =======

Reconciliation of net income 
 (loss) to net cash used by
 operating activities:

Net income (loss)                 $1,248,202     (439,277)    (405,453)

Adjustments to reconcile net
  income (loss) to net cash
  used by operating activities:
  Net realized gain from sales of 
   equity investments                (55,079)    (142,895)     (30,189)
  Realized losses from investment
   write-downs                        11,178           --        5,000
  Recoveries from investments
   previously written off                 --       (9,497)          --
  Change in net unrealized 
   fair value:
    Equity investments               191,770      179,453      (96,606)
    Secured notes receivable      (1,813,000)          --      185,000
Changes in:
  Due to/from related parties        196,069       79,344     (388,517)
  Other liabilities                     (807)      (5,335)     (52,795)
  Other, net                          22,251      (14,268)       5,444
                                   ---------      -------      -------
Net cash used by
  by operating activities         $ (199,416)    (352,475)    (778,116)
                                   =========      =======      =======

Non-cash financing activities:

Non-cash exercise of warrants     $       --           --        8,497
                                   =========      =======      =======

</TABLE>
See accompanying notes to financial statements.



<PAGE>

NOTES TO FINANCIAL STATEMENTS
-----------------------------

1.     Summary of Significant Accounting Policies
       ------------------------------------------

Organization
------------

Technology Funding Secured Investors I (the "Partnership") is a limited 
partnership organized under the laws of the State of California on August 
31, 1984.  The purpose of the Partnership is to provide secured loans to 
new and developing companies and to acquire, hold, sell, trade, exchange 
or otherwise dispose of warrants and/or capital stock acquired by the 
Partnership in conjunction with these loans.  The General Partners are 
Technology Funding Ltd. ("TFL") and Technology Funding Inc. ("TFI"), a 
wholly owned subsidiary of TFL.  TFI is the Managing General Partner.

The registration statement of the Partnership, filed with the Securities 
and Exchange Commission, became effective and the Partnership commenced 
selling units of limited partnership interest ("Units") on May 31, 1985.  
On September 9, 1985, the minimum number of Units required to form the 
Partnership (4,800) were sold.  On May 31, 1987, the offering terminated 
with 117,496 Units sold, generating $29,372,475 in cash from Limited 
Partners and $29,399 from the General Partners.  The Partnership 
Agreement provides that the Partnership will continue until December 31, 
2004, unless terminated sooner.

Preparation of Financial Statements and 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 amounts reported in the financial statements 
and accompanying notes. Actual results could differ from those estimates.  
Estimates are used when accounting for investments, change in unrealized 
fair value of investments, liabilities and contingencies.  Because of the 
inherent uncertainty of valuation, the estimated fair value of 
investments may differ significantly from the values that would have been 
used had a ready market for investments existed, and the differences 
could be material.  

Investments:
-----------

     Secured Notes Receivable, Net
     -----------------------------

The Partnership's method of accounting for secured notes receivable, in 
accordance with generally accepted accounting principles, is the fair 
value basis used for investment companies.  

The fair value of secured notes receivable is their initial cost basis 
adjusted for unrealized gains and losses.  The cost basis is comprised of 
note principal plus accrued interest, less any discount related to 
warrants.  The net unrealized gain or loss is reviewed quarterly by the 
Managing General Partner and is adjusted upward or downward to reflect 
the change in the fair market value of the notes.  Fair value may change 
due to an increase or decrease in the allowance for loan losses, or when 
the current expected loan proceeds exceed the cost basis.  Adjustments to 
fair value are reflected as "Change in net unrealized fair value of 
secured notes receivable".  Notes receivable are placed on nonaccrual 
status when, in the opinion of the Managing General Partner, the future 
collectibility of interest or principal is in doubt.

Where, in the opinion of the Managing General Partner, events indicate 
there has been an other than temporary decline in value below the cost 
basis of the note, an appropriate reduction in the cost basis is 
recognized as "Realized losses from investment write-downs" on the 
Statements of Operations. "Recoveries from investments previously written 
off" represent realized gains when payment is received on such notes.  

In conjunction with certain secured notes, upon note issuance or 
restructure, the Partnership has received warrants to purchase certain 
types of capital stock or capital stock of the borrowing company.  The 
cost basis of such warrants and the resulting discount has generally been 
estimated by the Managing General Partner to be 1% of the principal 
balance of the original notes made to the borrowing company.  The cost 
basis of capital stock and the resulting discount are generally based on 
the valuation set at the latest round of financing.  The discount is 
amortized to interest income on a straight-line basis over the term of 
the loan.  These warrants and capital stock are included in the equity 
investment portfolio.

     Equity Investments
     ------------------

The Partnership's method of accounting for investments, in accordance 
with generally accepted accounting principles, is the fair value basis 
used for investment companies.  The fair value of Partnership equity 
investments is their initial cost basis with changes as noted below:

The fair value for publicly traded equity investments (marketable equity 
securities) is based upon the five-day-average closing sales price or 
bid/ask price that is available on a national securities exchange or 
over-the-counter market.  Certain publicly traded equity investments may 
not be marketable due to selling restrictions and for those securities, 
an illiquidity discount of up to 33% is applied when determining the fair 
value; the actual discount percentage is based on the type and length of 
the restrictions.  Investments valued under this method were $0 and 
$165,029 at December 31, 1998 and 1997, respectively.

All investments which are not publicly traded are valued at fair market 
value as determined by the Managing General Partner in the absence of 
readily ascertainable market values.  Equity investments valued under 
this method were $0 and $121,208 at December 31, 1998 and 1997, 
respectively.  Generally, investments in privately held companies are 
valued at original cost unless there is clear evidence of a change in 
fair value, such as a recent round of third-party financings or events 
that, in the opinion of the Managing General Partners, indicate a change 
in value. 

Convertible and subordinated notes receivable are stated at cost plus 
accrued interest, which is equivalent to fair value, and are included in 
equity investments as repayment of these notes generally occurs through 
conversion into equity investments.

Where, in the opinion of the Managing General Partner, events indicate 
that the fair value of equity investments and  convertible and 
subordinated notes receivable may not be recoverable, a write-down to 
estimated fair value is recorded.  Temporary changes in fair value result 
in increases or decreases to the unrealized fair value of equity 
investments. Adjustments to fair value basis are reflected as "Change in 
net unrealized fair value of equity investments. "  In the case of an 
other than temporary decline in value below cost basis, an appropriate 
reduction in the cost basis is recognized as a realized loss with the 
fair value being adjusted to match the new cost basis. Cost basis 
adjustments are reflected as "Realized losses from investment write-
downs" on the Statements of Operations. 

Sales of equity investments are recorded on the trade date.  The basis on 
which cost is determined in computing realized gains or losses is 
specific identification.

Cash and Cash Equivalents
-------------------------

Cash and cash equivalents are principally comprised of cash invested in 
demand accounts, accounts maintained with brokers and money market 
instruments and are stated at cost plus accrued interest.  The 
Partnership considers all money market and short-term investments with an 
original maturity of three months or less to be cash equivalents.

Net Realized Income (Loss) Per Unit
-----------------------------------

Net realized income (loss) per Unit is calculated by dividing the 
weighted average number of Units outstanding for the years ended December 
31, 1998, 1997 and 1996, of 106,990, 109,661 and 110,802, respectively, 
into the total net realized income (loss) allocated to the Limited 
Partners.  The General Partners contributed an amount equal to 0.1% of 
the total Limited Partner capital contributions and did not receive any 
Partnership Units.

Provision for Income Taxes
--------------------------

No provision for income taxes has been made by the Partnership, as the 
Partnership is not directly subject to taxation.  The partners are to 
report their respective shares of Partnership income or loss on their 
individual tax returns.

The accompanying financial statements are prepared using generally 
accepted accounting principles which may not equate to tax accounting. 
The Partnership's total tax basis in investments was higher than the 
reported total cost basis of $891,953 by $3,536,341 as of December 31, 
1998.

Distributions
-------------

Distributions made to the Limited Partners are made among such partners 
in the proportion their respective capital accounts bear to the total of 
all capital accounts of the group.  Future distributions will be 
dependent upon available cash from loan repayments and equity investment 
sales. After a reasonable amount of time, unnegotiated distribution 
checks, if any, are recorded as other liabilities on the Balance Sheets.

2.     Financing Partnership Operations
       --------------------------------

The Managing General Partner expects that cash received from liquidation 
of Partnership investments will provide the necessary liquidity to fund 
Partnership operations.  Until such future proceeds are received, the 
Partnership will be dependent upon the financial support of the Managing 
General Partner to fund operations.  The Managing General Partner has 
committed to this support in the form of short-term cash advances.

3.     Related Party Transactions
       --------------------------

Included in costs and expenses are related party costs as follows:
<TABLE>
<CAPTION>
                                      For the Years Ended December 31,
                                   -------------------------------------
                                     1998          1997           1996
                                    ------        ------         ------
<S>                               <C>            <C>           <C>
Management fees                   $  6,646        16,334         25,365
Reimbursable operating expenses:
 Administrative and investor 
  services                         269,234       160,586        146,997
 Lending operations and 
  investment management             34,578        30,776         41,538
 Computer services                  25,311        39,927         62,872
</TABLE>

Management fees, payable quarterly, are equal to one-half of one percent 
of Partnership assets under management.  Management fees compensate the 
Managing General Partner solely for General Partner Overhead (as defined 
in the Partnership Agreement) incurred in supervising the operation, 
management, and progress of Partnership loans to borrowing companies and 
its portfolio of warrants and capital stock of borrowing companies, as 
well as for the general administration of the Partnership.  Currently, 
management fees are only paid to the extent that the aggregate amount of 
all proceeds (including warrants exercised without cash) received by the 
Partnership from the sale or other disposition of borrowing company 
equities, plus the aggregate fair market value of any equity securities 
distributed to the partners, exceeds the total management fee payable.  
Management fees payable were $12,712 and $6,066 at December 31, 1998 and 
1997, respectively.

The Partnership reimburses the Managing General Partner and affiliates 
for operating expenses incurred in connection with the business of the 
partnership.  Reimbursable operating expenses include expenses (other 
than Organizational and Offering and General Partner Overhead) such as 
investment operations, administrative and investor services, and computer 
services.  At December 31, 1998 and 1997, due to related parties for such 
expenses were $290,351 and $100,928, respectively.

The Managing General Partner allocates operating expenses incurred in 
connection with the business of the Partnership based on employee hours 
incurred.  In 1998, operating cost allocations to the Partnership were 
re-evaluated.  The Managing General Partner determined that they had not 
fully recovered allocable operating expenses, primarily salary, benefits, 
and professional fees, as permitted by the Partnership Agreement.  As a 
result, the Partnership was charged additional operating expenses of 
$110,142, consisting of $12,302, $17,238, and $80,602 for 1997, 1996, and 
prior years, respectively.  Had the additional expenses been recorded in 
prior years, operating expenses would have been $300,428, $335,989, and 
$298,240 for 1998, 1997 and 1996, respectively.

During 1996, the Partnership received reimbursements of $46,290 from 
portfolio companies primarily for legal, consulting, and other costs 
incurred in prior periods in the defense of the Partnership's secured 
note rights through bankruptcy court.  The reimbursements were recorded 
as a reduction to lending operations and investment management expense.

Effective November 1, 1997, TFL assigned its California office lease to 
Technology Funding Property Management LLC (TFPM), an entity that is 
affiliated to the Managing General Partner.  Under the terms of a rent 
agreement, TFPM charges the Partnership for its share of office rent and 
related overhead costs.  These amounts are included in administrative and 
investor service costs.

Under the terms of a computer service agreement, Technology 
Administrative Management, a division of TFI, charges the Partnership for 
its share of computer support costs.  These amounts are included in 
computer services expenses.

Within the normal course of business, the Partnership participates in 
secured notes receivable granted to non-affiliated borrowing companies by 
affiliated partnerships which are also managed by the General Partners. 
The Partnership may also reparticipate such secured notes receivable 
amongst affiliated partnerships to meet business needs.  At December 31, 
1998 and 1997, $4,340 of such amounts were due to affiliated 
partnerships.

The Partnership owns approximately 80% of MARCorp, a portfolio company. 
In addition, the Partnership and affiliated partnerships have secured 
notes receivable from MARCorp.

The Partnership together with affiliated entities own a 66% interest in 
Cyclean, Inc., a portfolio company.  In addition, the Partnership and 
affiliated partnerships wholly own Cyclean of Los Angeles, LLC ("CLA"), a 
portfolio company.  The Partnership has secured notes receivable from 
Cyclean, Inc. and affiliated entities have secured notes receivable from 
both Cyclean, Inc. and CLA.

In 1996, a portfolio company of the Partnership and affiliated 
partnerships entered into a joint venture with the General Partners to 
perform investment recovery efforts in order to increase the future 
investment returns to the Partnership.  The General Partners agreed to 
waive any "post-conversion" profit interest in the Partnership 
attributable to any such recoveries for a share of the joint venture net 
profits.  The post-conversion profit is pursuant to, and as defined in, 
the profit and loss provisions of the Partnership Agreement.  Through 
December 31, 1998, the Partnership has realized no recoveries, and the 
General Partners had not realized any profit from the joint venture.

4.     Allocation of Profits and Losses
       --------------------------------

Net realized loss of the Partnership is allocated 99% to the Limited 
Partners as a group and 1% to the General Partners as a group.

Net realized profit of the Partnership is allocated based on the 
beginning-of-year partners' capital balances as follows:

      (A)  99% to the Limited Partners as a group and 1% to the General
           Partners until conversion, which is defined as such time 
           when:

           (i)  the amount of cash plus the value of any securities 
                distributed to the Limited Partners equals the
                aggregate initial capital contributions of all the
                Limited Partners; and

           (ii) an 8% per annum cumulative, compounded return on the
                adjusted capital contributions (i.e., initial capital
                contributions less all amounts distributed) of all
                Limited Partners has been achieved.

      (B)  Thereafter (post conversion), 80% to the Limited Partners as
           a group and 20% to the General Partners as a group, except
           as provided below.

The Partnership Agreement defines adjusted capital contribution, with 
respect to any Limited Partner, as the capital contribution as reduced, 
but not below zero, by (i) all prior tax distributions of cash to such 
Limited Partner and (ii) the aggregate value (determined at the time of 
distribution) of any securities distributed to such Limited Partner.

Limited Partners that subscribed to the first 60,000 Units accepted by 
the Partnership will be allocated all of the General Partners' post-
conversion profits in excess of a 1% minimum allocation until such time 
as each such Limited Partner has received total distributions from the 
Partnership equal to their capital contribution plus a specified annual 
priority return, ranging between 9% and 18%, on their adjusted capital 
contribution.  Once the lowest priority return is met, the profits will 
be allocated to those Limited Partners who have not yet received their 
priority returns.  Thereafter, the General Partners will receive their 
full post-conversion profits.

5.     Secured Notes Receivable, Net
       -----------------------------

At December 31, 1998 and 1997, secured notes receivable consisted of:

<TABLE>
<CAPTION>

                                                      December 31, 1998        December 31, 1997
                                                     -------------------       -----------------
                    Investment                        Cost        Fair         Cost        Fair
Industry/Company       Date        Position           Basis       Value        Basis       Value
----------------    ----------     --------           -----       -----        -----       -----
<S>                  <C>         <C>               <C>          <C>         <C>        <C>

Industrial/Business Automation
------------------------------
Cyclean, Inc.        09/87-      Secured notes
                     09/94       receivable, plus
                                 interest, totaling
                                 $978,192            $443,572     589,063      443,572     65,572

Computers and Computer Equipment
--------------------------------
MARCorp              12/89-      Secured notes
                     02/93       receivable, plus
                                 interest, totaling
                                 $9,291,591           406,523   1,634,032      406,523    344,523
                                                      -------   ---------      -------    -------
Total                                                 850,095   2,223,095      850,095    410,095

Unamortized discount (all related to Cyclean, Inc.)  (124,871)   (124,871)    (124,871)  (124,871)
                                                      -------   ---------      -------    -------
Total secured notes receivable                       $725,224   2,098,224      725,224    285,224
                                                      =======   =========      =======    =======

</TABLE>


Cyclean, Inc.
-------------

The Partnership has valued its secured notes receivable investment in the 
company at its estimated share of proceeds that could result from a current 
sale or liquidation.  Because the company is an on going operation and not 
currently pursuing sale or liquidation, there are inherent uncertainties 
involved in estimating these proceeds.  The estimated fair value of 
$464,192 at December 31, 1998 may differ significantly from a value that 
would have been used had the ultimate realization of the investment been 
known, and the differences could be material.

MARCorp
-------

In 1998, the Company entered into an agreement to sell the majority of its 
assets to the management of one of its subsidiaries.  The Partnership has 
valued its secured notes receivable investment in the company at its 
expected share of the proceeds from this sale.  The fair market value of 
these proceeds at December 31, 1998 was $1,634,032.  In February 1999, the 
Partnership received $364,385 of these proceeds, the remainder of which are 
due to be received no later than August 2000.

Changes in the net unrealized fair value of secured notes receivable were 
as follows:

<TABLE>
<CAPTION>
                                            1998      1997        1996
                                           ------    ------      ------ 
<S>                                            <C>             <C>
Net unrealized fair value decrease
 from cost at beginning of year        $ (440,000) (440,000)   (255,000)

Change in net unrealized fair value
 of secured notes receivable            1,813,000        --    (185,000)
                                        ---------   -------     -------
Net unrealized fair value increase
 (decrease) from cost at end of year   $1,373,000  (440,000)   (440,000)
                                        =========   =======     =======
</TABLE>

The notes are secured by specific assets of the borrowing companies, and 
interest rates at December 31, 1998, ranged from 12% to 13%.  Scheduled 
principal repayments are $443,573 and $406,522 for 1999 and 2000, 
respectively.  Secured notes receivable which are due on demand are 
included as principal repayments in 1999.  In addition, the Managing 
General Partner may at times need to restructure notes by either extending 
maturity dates or converting notes into equity investments to increase the 
ultimate collectibility of the Partnership's investments.

The secured notes receivable portfolio at December 31, 1998 and 1997, was 
on nonaccrual status due to uncertainty of the borrowers' financial 
conditions.  The Managing General Partner continues to monitor the progress 
of these companies and intends to manage these investments to maximize the 
Partnership's net realizable value.

6.     Equity Investments
       ------------------

At December 31, 1998, and December 31, 1997, equity investments consisted of:

<TABLE>
<CAPTION>
                                                      December 31, 1998        December 31, 1997
                                                     -------------------       -----------------
                    Investment                        Cost        Fair         Cost        Fair
Industry/Company       Date        Position           Basis       Value        Basis       Value
----------------    ----------     --------           -----       -----        -----       -----
<S>                  <C>         <C>               <C>          <C>         <C>        <C>
WARRANTS:

Industrial/Business Automation
------------------------------
Cyclean, Inc.        09/87-      Common share
                     09/94       warrants for
                                 233,444 shares (1)  $    0           0           0          0

                                                    -------     -------     -------    -------
Total warrants                                            0           0           0          0
                                                    -------     -------     -------    -------

STOCKS:

Computers and Computer Equipment
--------------------------------
Censtor Corp.        05/95       21,178 Common
                                 shares                   0           0      11,178          0
MARCorp              12/89-      1,545,557 Series A
                     02/93       Preferred shares         0           0           0          0
MARCorp              05/92       Convertible 
                                 subordinated
                                 debenture,
                                 $2,813,898
                                 principal amount         0           0           0          0

Industrial/Business Automation
------------------------------
Cyclean, Inc.        09/94-      51,024 Series D
                     04/96       Preferred shares   124,790           0     124,790          0
Cyclean of           03/95       Class A LLC Unit 
 Los Angeles, LLC                11% ownership        2,816           0       2,816          0

Medical
-------
HemoCleanse, Inc.    03/95-      60,604 Common
                     01/97       shares              39,123           0      39,123    121,208
Resonex Holding      02/94       22,804 Common
 Corporation                     shares                   0           0           0          0

Microelectronics
----------------
Celeritek, Inc.       5/94-      11,847 Common
                     12/97       shares                  --          --      83,289    165,029
                                                    -------     -------     -------    -------
                                      
Total stocks                                        166,729           0     261,196    286,237
                                                    -------     -------     -------    -------

Total equity investments                           $166,729           0     261,196    286,237
                                                    =======     =======     =======    =======

--  No investment held at end of period.
 0  Investment active with a carrying value or fair value of zero.
(1)  Cyclean, Inc. common share warrants are exercisable at prices ranging from $2.74 to $3.10
    per share and expire on dates ranging from 03/99 to 07/02.
</TABLE>



Marketable Equity Securities
----------------------------

At December 31, 1997, marketable equity securities had aggregate costs of 
$83,287 and aggregate market values of $165,029.  The unrealized gain at 
December 31, 1997, did not include any gross losses.  All of the 
Partnership's marketable equity securities were sold in 1998.

Celeritek, Inc.
---------------

In 1998, the Partnership sold its remaining investment in the company for 
total proceeds of $138,368 and realized a gain of $55,079.

Censtor Corp.
-------------

In December 1998, the Partnership wrote off the cost basis of its 
investment and realized a loss off $11,178.  This was based on recent 
sales of the company's securities by an entity affiliated with the 
Managing General Partner which indicate that the Partnership's shares 
have no realizable value.

HemoCleanse, Inc.
-----------------

In September 1998, the Partnership wrote off the fair value of its 
investment based on the opinion of the Managing General Partner that the 
current operating status of the company indicated a decline in fair 
value.



7.     Change in Net Unrealized Fair Value of Equity Investments
       ---------------------------------------------------------

In accordance with the Partnership's accounting policy as stated in Note 
1, the Statements of Operations include a line item entitled "Change in 
net unrealized fair value of equity investments. "  The table below 
discloses details of the changes:

<TABLE>
<CAPTION>
                                       For the Years Ended December 31,
                                     -----------------------------------
                                       1998         1997          1996
                                      ------       ------        ------
<S>                                 <C>          <C>          <C>
Increase in fair value from cost
 of marketable equity securities   $      --       81,742       156,162

(Decrease) increase in fair value
 from cost of non-marketable 
 equity securities                  (166,729)     (56,701)       48,332
                                     -------      -------       -------

Net unrealized fair value
 (decrease) increase from cost
 at end of year                     (166,729)      25,041       204,494

Net unrealized fair value 
 increase from cost at 
 beginning of year                    25,041      204,494       107,888
                                     -------      -------       -------

Change in net unrealized
 fair value of equity
 investments                       $(191,770)    (179,453)       96,606
                                     =======      =======       =======
</TABLE>

8.     Litigation and Other Investment Expenses
       -----------------------------------------

In March 1996, affiliated partnerships filed a lawsuit in the United 
States District Court, Northern District of California, against Cyclean, 
Inc., ("Cyclean"), Ecopave, L.P. ("Ecopave"), Ecopave Corp. and Stephen 
M. Vance ("Vance").  The Partnership participated in secured notes 
investments to Cyclean with the affiliated partnerships.  In January 
1997, a counterclaim was filed by Ecopave and Vance.  

As a result of a settlement conference, these lawsuits were resolved 
effective April 1, 1997.  The affiliated partnerships purchased Ecopave 
Corp. and Vance's ownership interest in Ecopave for $5.5 million.  The 
Partnership did not participate in the purchase.  The Managing General 
Partner believes the settlement was the most cost-effective resolution of 
this dispute, and it has improved the Partnership's ability to recover 
its secured notes receivable.

Other investment expenses in 1997 and 1996 of $76,905 and $64,341, 
respectively, reflect the participated cost of this legal action.  

9.     Cash and Cash Equivalents
       -------------------------

At December 31, 1998 and 1997, cash and cash equivalents consisted of:
<TABLE>
<CAPTION>
                                                    1998          1997
                                                   ------        ------
<S>                                              <C>           <C>
Demand and brokerage accounts                      $6,608         9,195
Money-market accounts                                 412        58,873
                                                    -----        ------
     Total                                         $7,020        68,068
                                                    =====        ======
</TABLE>

10.    Repurchase of Limited Partnership Interests
       -------------------------------------------

Each June, subject to the limitations of the Partnership agreement, 
Limited Partners may tender their Units for repurchase by the 
Partnership.  The price paid for any Units tendered is based on the June 
30 estimated fair value of the Partnership.  Units repurchased and the 
amounts paid were 2,914 Units for $20,602 in 1997 and 1,197 Units for 
$12,418 in 1996.  The Partnership did not repurchase Units in 1998.



<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 SECURED INVESTORS I

                           By:  TECHNOLOGY FUNDING INC.
                                Managing General Partner




Date:  March 29, 1999      By:       /s/Michael Brenner
                                -----------------------------
                                        Michael Brenner
                                        Controller

Pursuant to the requirements of the Securities Exchange Act of 1934, this 
Report has been signed below by the following persons on behalf of the 
Registrant and in the capacities and on the dates indicated:

          Signature           Capacity                   Date
          ---------           --------                   ----

  /s/Charles R. Kokesh        President, Chief       March 29, 1999
------------------------      Executive Officer,
     Charles R. Kokesh        Chief Financial Officer,
                              and Chairman of
                              Technology Funding Inc.
                              and Managing General
                              Partner of Technology
                              Funding Ltd.



The above represents the Board of Directors of Technology Funding Inc. 
and the General Partners of Technology Funding Ltd.