FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                              Washington D.C. 20549

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

For the year ended October 31, 2001

                                       or

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934 (no fee required)

Commission File Number  000-28405

                    MEVC DRAPER FISHER JURVETSON FUND I, INC.
           (Exact name of the registrant as specified in its charter)

            DELAWARE                                        94-3346760
(State or other jurisdiction of                  (I.R.S. Employer Identification
 incorporation or organization)                                No.)

       991 Folsom Street
   San Francisco, California                                94107-1020
    (Address of principal                                   (Zip Code)
       executive offices)

Registrant's telephone number, including area code:  (877) 474-6382

Securities registered pursuant to Section 12(b) of the Act:

      Title of each class                            Name of each exchange on
                                                         which registered
          Common Stock                                New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

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. [ ]

Approximate aggregate market value of common stock held by non-affiliates of the
registrant:  $165,850,547,  computed  on the basis of $10.06 per share,  closing
price of the common  stock on the New York Stock  Exchange on December 18, 2001.
For  purposes of  calculating  this amount only,  all  directors  and  executive
officers  of  the  registrant  have  been  treated  as  affiliates.  There  were
16,500,000 shares of the registrant's common stock, $.01 par value,  outstanding
as of December 18, 2001.  The net asset value of a share at October 31, 2001 was
$15.42.


<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                            (A Delaware Corporation)
                                      Index

Part I                                                                      Page

     Item 1.   Business...................................................     1
     Item 2.   Properties.................................................    13
     Item 3.   Legal Proceedings..........................................    13
     Item 4.   Submission of Matters to a Vote of Security Holders........    13

Part II

     Item 5.   Market for Registrant's Common Equity and Related
                Stockholder Matters.......................................    14
     Item 6.   Selected Financial Data....................................    14
     Item 7.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations........................    15
     Item 7A.  Quantitative and Qualitative Disclosure about
                Market Risk...............................................    18
     Item 8.   Financial Statements and Supplementary Data................    19
     Item 9.   Changes in and Disagreements with Accountants on
               Accounting and Financial Disclosures.......................    40

Part III

     Item 10.  Directors and Executive Officers of the Registrant.........    40
     Item 11.  Executive Compensation.....................................    42
     Item 12.  Security Ownership of Certain Beneficial Owners
                and Management............................................    42
     Item 13.  Certain Relationships and Related Transactions.............    43

Part IV

     Item 14.  Exhibits, Financial Statement Schedules and
                Reports on Form 8-K.......................................    44

SIGNATURE.................................................................    45

<PAGE>

                                     Part I

Item 1. Business

     meVC  Draper  Fisher  Jurvetson  Fund I, Inc.  (the  "Fund")  is a Delaware
Corporation  that seeks to achieve  capital  appreciation  principally by making
investments in equity and  equity-oriented  securities issued by privately-owned
companies in transactions  negotiated  directly with such companies  ("Portfolio
Companies").  The Fund seeks to make venture capital  investments in information
technology companies, primarily in the Internet, e-commerce, telecommunications,
networking, software and information services industries. The Fund's investments
in Portfolio  Companies will consist  principally of equity  securities  such as
common  and  preferred  stock,  but  may  also  include  other   equity-oriented
securities  such as debt  convertible  into  common or  preferred  stock or debt
combined with  warrants,  options or other rights to acquire common or preferred
stock.  Current income is not a significant factor in the selection of Portfolio
Company  investments.  The  Fund  has  elected  to  be  treated  as  a  business
development  company under the Investment  Company Act of 1940, as amended ("the
Investment Company Act").

     The Fund has five  directors.  Three  of the  directors  are  disinterested
individuals (the "Independent  Directors") as defined by the Investment  Company
Act.  The  directors  are  responsible  for  providing   overall   guidance  and
supervision of the Fund,  approving the valuation of the Fund's  investments and
performing various duties imposed on directors of a business development company
by the Investment  Company Act. Among other things,  the  Independent  Directors
supervise the management  arrangements  for the Fund,  the custody  arrangements
with respect to  portfolio  securities,  the  selection  of  independent  public
accountants, fidelity bonding and any transactions with affiliates.

     The Fund has engaged  meVC  Advisers,  Inc.,  a Delaware  Corporation  (the
"Adviser",  "meVC Advisers"),  to provide certain  management and administrative
services  necessary for the operation of the Fund. The Adviser is a wholly-owned
subsidiary of meVC.com, Inc., a Delaware Corporation  ("meVC.com").  The largest
investor in meVC.com is the Draper Fisher Jurvetson Fund VI, L.P.

     Subject to the supervision of the directors,  the Adviser performs services
necessary for the  operations  of the Fund.  Subject to the  supervision  of the
directors, the Adviser has arranged for third parties to perform the management,
administrative,  investment  sub-advisory  and other services  necessary for the
operations of the Fund.  The Adviser has engaged  Draper Fisher  Jurvetson  MeVC
Management  Co.,  LLC,  a  Delaware  Corporation  (the  "Sub-Adviser",   "Draper
Advisers"), to identify, evaluate, structure, monitor, and dispose of the Fund's
investments  in Portfolio  Companies.  The Adviser has engaged Fleet  Investment
Advisors,  Inc. (the "Short-Term Money Manager"),  to manage the Fund's cash and
short-term,  interest-bearing  investments. The Adviser has engaged State Street
Bank and Trust Co, Inc. (the "Fund Administrator",  the "Fund Accounting Agent",
the "Custodian"),  to handle all functions of  administration,  accounting,  and
custodial work  necessary for the  operations of the Fund. The Adviser  provides
the Fund, at the Adviser's expense, with the office space, facilities, equipment
and personnel (whose salaries and benefits are paid by the Adviser) necessary to
enable  the  Fund to  conduct  the  operational  aspects  of its  business.  The
Sub-Adviser  provides the Fund, at the  Sub-Adviser's  expense,  with the office
space, facilities, equipment and personnel (whose salaries and benefits are paid
by the  Sub-Adviser)  necessary  to enable  the Fund to conduct  the  investment
management aspects of its business.

     The Adviser and its officers,  the  Sub-Adviser  and its officers,  and the
officers of the Fund are collectively  referred to herein as  "Management".  The
Fund's  principal  office  is  located  at 991  Folsom  Street,  San  Francisco,
California 94107, and the telephone number is (877) 474-6382.


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<PAGE>

INVESTMENT PRACTICES

     Substantially  all of the  net  assets  of the  Fund  are  invested  or are
intended to be invested in securities of Portfolio Companies.  Substantially all
amounts not  invested in  securities  of  Portfolio  Companies  are  invested in
short-term,   highly  liquid   investments   consisting   of  interest   bearing
certificates  of deposit or  securities  issued or guaranteed as to interest and
principal by the United States or by a person or entity controlled or supervised
by and acting as an  instrumentality of the government of the United States that
have  maturities of less than one year from the date of the  investment or other
short-term,  highly liquid investment  providing,  in the opinion of Management,
appropriate safety of principal.

     The Fund's  investments  in Portfolio  Companies are  structured in private
transactions  negotiated  directly  with the owner or  issuer of the  securities
acquired.

     The Fund is concentrating its investment efforts on companies of a type and
size that, in Management's view, provide  opportunities for significant  capital
appreciation and prudent diversification of risk.

     The  Fund is  attempting  to  reduce  certain  risks  inherent  in  private
equity-oriented investments by investing in a portfolio of companies involved in
different sectors of the Information  Technology industry.  The Fund has limited
its  initial  investment  (whether  in the form of  equity  or debt  securities,
commitments to purchase  securities or debt guaranties) in any Portfolio Company
to no more than 5% of the Fund's net assets.  However, if a follow-on investment
is  available  or  required,  as discussed  below,  the Fund's  investment  in a
particular  Portfolio Company may exceed those initial  investment  limitations.
Also,  investments in certain Portfolio Companies may be in excess of the Fund's
initial   investment   limitations  due  to  increases  in  the  value  of  such
investments.

INVESTMENT CRITERIA

     Prospective  investments  are evaluated by  Management  based upon criteria
that may be modified  from time to time.  The criteria  currently  being used by
Management  in  determining  whether  to make  an  investment  in a  prospective
Portfolio Company include:

     -    The presence or availability of strong management teams;
     -    Favorable industry and competitive dynamics;
     -    Markets characterized by rapid growth and new product adaptation.

CO-INVESTMENTS

     The Fund has coinvested in certain Portfolio  Companies with its affiliates
in the Draper  Fisher  Jurvetson  network (the "Draper  Network").  The Fund and
Management  obtained an order from the Securities and Exchange  Commission  (the
"SEC") exempting the Fund from certain prohibitions  contained in the Investment
Company Act relating to coinvestments by the Fund and the Draper Network.  Under
the terms of the order, Portfolio Companies purchased by the Fund and the Draper
Network  are  required  to be  approved  by the  Independent  Directors  and are
required to satisfy certain conditions established by the SEC.

INVESTMENT OPERATIONS

     The investment  operations of the Fund consist principally of the following
basic activities:

     IDENTIFYING  INVESTMENTS.  Investment  opportunities are identified for the
Fund by the  members and staff of Draper  Advisers.  Investment  proposals  may,
however, come to the Fund from many other sources, and may


                                       2
<PAGE>

include  unsolicited  proposals  from the public and from  referrals from banks,
lawyers, accountants and other members of the financial community.

     EVALUATING  INVESTMENT  OPPORTUNITIES.  Prior  to  committing  funds  to an
investment  opportunity,  due diligence is conducted to assess the prospects and
risks of the potential investment. See "Investment Criteria" above.

     STRUCTURING  INVESTMENTS.   Portfolio  Company  investments  typically  are
negotiated  directly with the prospective  Portfolio  Company or its affiliates.
Draper  Advisers  structures the terms of a proposed  investment,  including the
purchase price, the type of security to be purchased and the future  involvement
of the  Fund and  affiliates  in the  Portfolio  Company's  business  (including
potential  representation  on its board of directors).  Draper Advisers seeks to
structure the terms of the  investment so as to provide for the capital needs of
the Portfolio Company and at the same time maximize the Fund's opportunities for
capital appreciation in its investments.

     PROVIDING  MANAGEMENT  ASSISTANCE  AND MONITORING OF  INVESTMENTS.  Private
equity investors often assist Portfolio  Companies with various aspects of their
business operations. In some cases, officers of the Fund serve as members of the
board of directors of Portfolio Companies.  The Fund often provides guidance and
management  assistance  to Portfolio  Companies  with respect to such matters as
budgets, profit goals, business and financing strategy,  management additions or
replacements and plans for liquidity events for Portfolio Company investors such
as a merger or initial public offering.

CURRENT PORTFOLIO COMPANIES

     Actelis Networks, Inc.

     Actelis  Networks,   Inc.   ("Actelis"),   Fremont,   California,   enables
telecommunications   carriers  and  service  providers  to  deliver  high-speed,
high-quality broadband services over the existing copper wire infrastructure. At
October 31, 2001,  the Fund's  investment  in Actelis,  valued at  approximately
$5,000,000  with a cost of  approximately  $5,000,000,  consisted  of  1,506,025
shares of Series C Convertible Preferred Stock at $3.32 per share.

     Annuncio Software, Inc.

     Annuncio Software, Inc. ("Annuncio"),  Mountain View, California,  provides
customer  relationship  software that allows  companies to market their products
more effectively to their consumers.  This software enables  companies to manage
their  interactions with customers through email, and their Web site, as well as
more  traditional  channels  and also allows  companies  to  proactively  engage
existing and prospective  customers by delivering them personalized  information
and marketing  offers.  At October 31, 2001, the Fund's  investment in Annuncio,
valued at $3,750,000  with a cost of $5,000,000,  consisted of 625,000 shares of
Series E Convertible Preferred Stock at $6.00 per share.

     AuctionWatch.com, Inc.

     AuctionWatch.com,   Inc.  ("AuctionWatch"),   San  Bruno,  California,  has
developed an e-commerce platform that enables businesses of all sizes to benefit
from dynamic  pricing  environments in addition to typical fixed price channels.
The  company's   services  provide   businesses  with  the  tools  necessary  to
efficiently  distribute  merchandise  and acquire  customers,  while providing a
convenient  service for  customers to locate and  purchase  these  products.  At
October 31, 2001, the Fund's investment in AuctionWatch, valued at approximately
$2,320,000 with a cost of $5,500,000,  consisted of 1,047,619 shares of Series C
Convertible Preferred Stock at $2.2148 per share.


                                       3
<PAGE>

     BlueStar Solutions, Inc. (formerly eOnline, Inc.)

     BlueStar Solutions, Inc. ("BlueStar"), Cupertino, California, is a provider
of applications  outsourcing services. The company designs, manages and delivers
software  solutions  for  its  customers.  BlueStar  also  provides  consulting,
customer support, and maintenance  services using the SAP business  applications
platform.  At October 31, 2001,  the Fund's  investment  in BlueStar,  valued at
approximately $2,500,000 with a cost of approximately $10,000,000,  consisted of
1,360,544  shares of Series C Convertible  Preferred Stock at $1.8375 per share.
The Fund also received  136,054  warrants to purchase 136,054 shares of Series C
Preferred  Stock at a  purchase  price of $7.35  per share  (as  adjusted).  The
warrants expire at the earlier of (i) May 26, 2003 or (ii) BlueStar's  Qualified
Initial Public Offering ("Qualified IPO").

     Cidera, Inc.

     Cidera, Inc. ("Cidera"),  Laurel,  Maryland,  is an international leader in
the  satellite  delivery  of  broadband  content to the  Internet.  Cidera  uses
high-speed  satellite  technology  designed  to  transport  high-bandwidth  data
faster,  more  reliably,  and more  efficiently to ISPs and DSL and Cable access
providers.  At October 31,  2001,  the Fund's  investment  in Cidera,  valued at
approximately $3,750,000 with a cost of approximately  $7,500,000,  consisted of
857,192 shares of Series D Convertible Preferred Stock at $4.3748 per share.

     DataPlay, Inc.

     DataPlay, Inc. ("DataPlay"),  Boulder,  Colorado, is developing new ways of
enabling consumers to record and play digital content.  At October 31, 2001, the
Fund's investment in DataPlay, valued at approximately $7,500,000 with a cost of
approximately $7,500,000,  consisted of 2,500,000 shares of Series D Convertible
Preferred Stock at $3.00 per share.

     Endymion Systems, Inc.

     Endymion Systems ("Endymion Systems"),  Oakland,  California, helps clients
migrate their existing businesses and business systems to the Internet. Endymion
provides  comprehensive  guidance for clients through  services ranging from Web
strategy consulting to Web site design and  implementation.  Their main focus is
on the  back-end,  namely  integrating  a business's  ERP  (enterprise  resource
planning)  systems as well as older  systems  with  Web-based  technologies.  At
October  31,  2001,  the  Fund's  investment  in  Endymion  Systems,  valued  at
approximately $5,250,000 with a cost of approximately  $7,000,000,  consisted of
7,156,760 shares of Series A Convertible Preferred Stock at $.7336 per share.

     EXP Systems, Inc.

     EXP Systems,  Inc. ("EXP"),  Menlo Park,  California,  provides  enterprise
software that helps companies  improve sales and service through their Web sites
by  enabling  buyers to engage with real people in real time who can assist them
in answering questions and making purchase  decisions.  At October 31, 2001, the
Fund's  investment in EXP,  valued at  approximately  $3,750,000  with a cost of
approximately $10,000,000, consisted of 1,748,252 shares of Series C Convertible
Preferred Stock at $2.145 per share.

     FOLIOfn, Inc.

     FOLIOfn, Inc. ("FOLIOfn"), Vienna, Virginia, together with its wholly owned
brokerage subsidiary FOLIOfn  Investments,  Inc., is harnessing the power of the
Internet to enable individual and smaller institutional  investors to invest and
trade better,  smarter,  and easier.  FOLIOfn's first product,  FOLIO Investing,
offers a whole new way to invest and trade, combining many of the best qualities
of mutual funds,  traditional  brokerage  services,  and on-line trading.  FOLIO
Investing, lets investors buy and sell personalized baskets of stocks - known as
"FOLIOs".  At October 31,  2001,  the Fund's  investment  in FOLIOfn,  valued at
$7,500,000 with a cost


                                       4
<PAGE>

of $15,000,000,  consisted of 5,802,259 shares of Series C Convertible Preferred
Stock at $1.2926 per share.  Mr.  Grillos,  the Chief  Executive  Officer of the
Fund, serves as a director of FOLIOfn.

     InfoImage, Inc.

     InfoImage,  Inc. ("InfoImage"),  Phoenix, Arizona, helps companies increase
their decision-making efficiency with intranet/extranet  solutions using Web and
collaborative technologies.  InfoImage's decision portal software product allows
access to structured and unstructured data, advanced personalization,  intuitive
search,  business intelligence and collaboration tools. At October 31, 2001, the
Fund's  initial  investment  in  InfoImage,  valued  at  $0.00  with a  cost  of
$2,004,480,  consisted of 933,120 shares of Common Stock (exchanged from 432,000
shares of Series C  Convertible  Preferred  Stock) at $0.00 per share.  The Fund
also received  259,200  warrants to purchase 259,200 shares of Common Stock. The
warrants expire at the earlier of (i) June 2, 2010 or (ii) InfoImage's Qualified
Initial  Public  Offering  ("Qualified  IPO").  At October 31, 2001,  the Fund's
subsequent investment in InfoImage,  valued at $352,210 with a cost of $352,210,
consisted  of  11,740,340  shares  of  Series  AA  Convertible  Preferred  Stock
(converted from a Convertible  Promissory  Note plus accrued  interest) at $0.03
per share.  The Fund also received  92,663,933  warrants to purchase  92,663,933
shares of Common Stock. The warrants expire on June 14, 2006.

     infoUSA.com, Inc.

     infoUSA.com,  Inc.  ("infoUSA.com"),   Foster  City,  California,  provides
comprehensive and accurate directory information plus targeted mailing lists for
Internet and wireless users.  The infoUSA.com site provides  customizable  sales
leads,  business and consumer  information and database  marketing services that
enable businesses to compete more  effectively.  At October 31, 2001, the Fund's
investment in  infoUSA.com,  valued at  approximately  $6,750,000 with a cost of
approximately $10,000,000, consisted of 2,145,922 shares of Series B Convertible
Preferred Stock at $3.1455 per share.

     IQdestination

     IQdestination,  Boulder,  Colorado,  facilitates  IT training for corporate
clients  by  performing  all of the tasks  normally  associated  with  technical
education: locating the training, negotiating the best price, and evaluating the
best ways to achieve  specific  training  goals. At October 31, 2001, the Fund's
initial  investment  in  IQdestination,  valued  at  $816,500  with  a  cost  of
$2,300,000,  consisted of  1,150,000  shares of Series B  Convertible  Preferred
Stock at $0.71 per share. At October 31, 2001, the Fund's subsequent  investment
in  IQdestination,  valued at $920,000  with a cost of  $920,000,  consisted  of
1,295,775 shares of Series C Convertible  Preferred Stock at $0.71 per share. V.
Frank  Mendicino  III,  non-managing  member  of  Draper  Advisers,  serves as a
director of IQdestination.

     Ishoni Networks, Inc.

     Ishoni Networks, Inc. ("Ishoni"),  Santa Clara, California,  is a developer
of  highly  integrated   broadband   platforms  that  allow  Original  Equipment
Manufacturers  (OEMs) and service  providers  to offer secure voice and Internet
services  over  a  single  broadband  connection  to  residential  and  business
customers.  At October 31,  2001,  the Fund's  investment  in Ishoni,  valued at
approximately $7,500,000 with a cost of approximately $10,000,000,  consisted of
2,003,607 shares of Series C Convertible Preferred Stock at $3.7433 per share.

     Lumeta Corporation

     Lumeta  Corporation  ("Lumeta"),  Somerset,  New Jersey,  is a developer of
network  management,  security,  and auditing  solutions.  The company  provides
businesses with a comprehensive  analysis of their network security that reveals
the vulnerabilities and inefficiencies of their corporate intranets. The company
also  facilitates  network  optimization  and IT management  during  integration
processes such as mergers. At October 31, 2001, the Fund's investment in Lumeta,
valued at $250,000 with a cost of $250,000, consisted of 384,615


                                       5
<PAGE>

shares of Series A  Convertible  Preferred  Stock at $0.65  per  share.  Ross H.
Goldstein,  non-managing  member of Draper  Advisers,  serves as a  director  of
Lumeta.

     MediaPrise, Inc.

     MediaPrise,  Inc.  ("MediaPrise"),  Austin, Texas, facilitates the complete
integration of brand and product marketing  information for corporations via the
Internet.  MediaPrise brings structure to the information  distribution  process
through the creation of a consistent branding and product-marketing platform for
its clients. At October 31, 2001, the Fund's investment in MediaPrise, valued at
approximately $2,000,000 with a cost of approximately  $2,000,000,  consisted of
2,196,193  shares of Series A Convertible  Preferred Stock at $0.9107 per share.
John E. Campion, non-managing member of Draper Advisers, serves as a director of
MediaPrise.

     Pagoo, Inc.

     Pagoo, Inc. ("Pagoo"), San Francisco,  California, is a leading provider of
comprehensive  Internet  Protocol  (IP)-based voice solutions.  The applications
that Pagoo has developed and patented are the first to make voice-over-IP a true
alternative to voice over traditional  telephone networks.  At October 31, 2001,
the Fund's  initial  investment in Pagoo,  valued at  $7,542,661  with a cost of
approximately $10,000,000, consisted of 3,412,969 shares of Series C Convertible
Preferred Stock at $2.21 per share.  At October 31, 2001, the Fund's  subsequent
investment  in  Pagoo,  valued  at  $4,000,000  with  a  cost  of  approximately
$4,000,000,  consisted of  2,098,636  shares of Series D  Convertible  Preferred
Stock at $1.906 per share. Nino Marakovic, Partner of Draper Advisers, serves as
a director of Pagoo.

     Personic Software, Inc.

     Personic  Software,  Inc.  ("Personic"),   Brisbane,  California,  provides
marketplace  and  ebusiness   solutions  which  afford  the  communications  and
transaction  infrastructure  to enable  organizations  and staffing  agencies to
attract, qualify, hire and retain a superior workforce. At October 31, 2001, the
Fund's  initial  investment  in  Personic,  valued  at  $0.00  with  a  cost  of
approximately  $10,000,000,  consisted of 512,296 shares of Series F Convertible
Preferred  Stock at  $0.00  per  share.  The  Fund's  subsequent  investment  in
Personic,  valued at $0.00 with a cost of approximately  $760,460,  consisted of
38,958 shares of Series G1 Convertible  Preferred Stock at $0.00 per share.  The
Fund also received  973,950 warrants to purchase 973,950 shares of Common Stock.
The warrants expire on October 31, 2005.

     ProcessClaims

     ProcessClaims   ("ProcessClaims"),   Redondo  Beach,  California,  provides
Web-based  solutions and value added  services that  streamline  the  automobile
claims process for the insurance industry and its partners. At October 31, 2001,
the Fund's investment in ProcessClaims,  valued at approximately $2,000,000 with
a cost of  approximately  $2,000,000,  consisted of 6,250,000 shares of Series C
Convertible Preferred Stock at $0.32 per share. Peter Freudenthal, Vice-Chairman
and President of the Fund, serves as Chairman of the Board of ProcessClaims.

     SafeStone Technologies PLC

     SafeStone Technologies PLC ("SafeStone"),  Old Amersham, UK, provides their
corporate  clients with network security  solutions.  SafeStone's  comprehensive
suite of  auditing,  data and  system  management  software  products  allows an
enterprise  to monitor  and  protect  its  network  while  identifying  areas of
security  exposure.  At October 31, 2001,  the Fund's  investment  in SafeStone,
valued at  approximately  $2,624,000  with a cost of  approximately  $3,500,000,
consisted of 650,401  shares of Series A Convertible  Preferred  Stock at $4.035
per share.


                                       6
<PAGE>

     ShopEaze Systems, Inc.

     ShopEaze Systems, Inc. ("ShopEaze"),  Sunnyvale,  California, partners with
established  retailers to help them build online  businesses to complement their
existing brick-and-mortar businesses. ShopEaze's suite of comprehensive services
helps  its  partners'  customers  to enjoy the  experience  and  convenience  of
shopping online with their local,  trusted  retailers.  At October 31, 2001, the
Fund's  investment in ShopEaze,  valued at $2,250,000 with a cost of $6,000,000,
consisted of 2,097,902 shares of Series B Convertible Preferred Stock at $1.0725
per share.

     Sonexis, Inc. (formerly eYak, Inc.)

     Sonexis,  Inc.  ("Sonexis"),  Boston,  Massachusetts,  is a leading  global
provider of voice solutions for enterprise  customers and service providers that
enable anytime,  anywhere  transactions and information  access. Its product and
services  reduce the cost,  time-to-market,  and complexity of developing  these
solutions,  which  currently  include  enterprise  and consumer  voice  portals,
enhanced  self-service,  voice commerce, and voice-enabled Customer Relationship
Management.  At October 31, 2001,  the Fund's  investment in Sonexis,  valued at
approximately $10,000,000 with a cost of approximately $10,000,000, consisted of
2,590,674 shares of Series C Convertible Preferred Stock at $3.86 per share.

     Yaga, Inc.

     Yaga, Inc. ("Yaga"),  Foster City, California, is developer of peer-to-peer
networking   technology.   This  technology  provides  the  infrastructure  that
companies of all sizes need to acquire and communicate with their customers in a
secure and efficient environment.  At October 31, 2001, the Fund's investment in
Yaga,  valued at approximately  $600,000 with a cost of approximately  $300,000,
consisted of 300,000 shares of Series A Convertible Preferred Stock at $2.00 per
share. At October 31, 2001, the Fund's subsequent  investment in Yaga, valued at
approximately $2,000,000 with a cost of approximately  $2,000,000,  consisted of
1,000,000 shares of Series B Convertible  Preferred Stock at $2.00 per share and
100,000 warrants valued at $0.00 per share. The warrants expire on June 8, 2004.

TEMPORARY INVESTMENTS

     Pending investment in Portfolio  Companies,  the Fund invests its available
funds in  interest-bearing  bank  accounts,  money  market  mutual  funds,  U.S.
Treasury  securities and/or certificates of deposit with maturities of less than
one year (collectively, "Temporary Investments"). Temporary Investments may also
include commercial paper and other short-term securities.  Temporary Investments
constituting  cash,  cash items,  securities  issued or  guaranteed  by the U.S.
Treasury  or  U.S.   Government   agencies  and  high  quality  debt  securities
(commercial  paper rated in the  highest  rating  category  by Moody's  Investor
Services,  Inc. or Standard and Poor's  Corporation) will qualify in determining
whether the Fund has 70% of its total assets  invested in Managed  Companies (as
hereafter  defined) or in qualified  Temporary  Investments  for purposes of the
business  development  company  provisions  of the  Investment  Company Act. See
"Regulation" below.

FOLLOW-ON INVESTMENTS

     Following its initial  investment in a Portfolio  Company,  the Fund may be
requested to make follow-on  investments in the company.  Follow-on  investments
may be made to take advantage of warrants or other  preferential  rights granted
to the Fund or  otherwise to increase  the Fund's  position in a  successful  or
promising  Portfolio  Company.  The  Fund  may also be  called  upon to  provide
additional  equity or loans needed by a Portfolio Company to fully implement its
business  plans, to develop a new line of business or to recover from unexpected
business problems.


                                       7
<PAGE>

DISPOSITION OF INVESTMENTS

     The  method  and  timing  of  the  disposition  of  the  Fund's   portfolio
investments is critical to the  realization of capital  appreciation  and to the
minimization of any capital losses. The Fund expects to dispose of its portfolio
securities  through a variety  of  transactions,  including  sales of  portfolio
securities in underwritten public offerings, public sales of such securities and
negotiated  private sales of such securities to other investors.  The Fund bears
the costs of  disposing  of  investments  to the extent not paid by a  Portfolio
Company.

OPERATING EXPENSES

     The  Adviser,  at  its  expense,  provides  the  Fund  with  office  space,
facilities, equipment and personnel (whose salaries and benefits are paid by the
Adviser) necessary to conduct the Fund's business. The Adviser has agreed to pay
certain expenses relating to the Fund's operations,  including fees and expenses
of the Independent Directors;  fees of unaffiliated transfer agents,  registrars
and  disbursing  agents;  legal and accounting  expenses;  costs of printing and
mailing proxy  materials and reports to  shareholders;  New York Stock  Exchange
fees;  custodian  fees;  litigation  costs;  costs of disposing  of  investments
including   brokerage  fees  and   commissions;   and  other   extraordinary  or
nonrecurring  expenses and other expenses  properly payable by the Adviser.  The
Fund is responsible for paying the Management Fee to the Adviser.

VALUATION

     Investments  in Portfolio  Companies are carried at fair value with the net
change in unrealized  appreciation or depreciation included in the determination
of net assets. Cost is used to approximate fair value of these investments until
significant  developments  affecting an  investment  provide a basis for valuing
such investment at a number other than cost.

     The fair value of investments  for which no market exists and for which our
Board of Directors has determined that the original cost of the investment is no
longer an  appropriate  valuation  will be determined on the basis of procedures
established  in good faith by the Board of Directors.  Valuations  will be based
upon such factors as the financial and/or  operating  results of the most recent
fiscal   period,   the   performance   of  the   company   relative  to  planned
budgets/forecasts,  the issuer's financial condition and the markets in which it
does business, the prices of any recent transactions or offerings regarding such
securities or any proxy  securities,  any available  analysis,  media,  or other
reports or information regarding the issuer, or the markets or industry in which
it operates, the nature of any restrictions on disposition of the securities and
other analytical data. In the case of unsuccessful operations, the valuation may
be based upon anticipated liquidation proceeds.

     Because  of  the  inherent   uncertainty  of  the  valuation  of  portfolio
securities  which do not have readily  ascertainable  market values,  the Fund's
estimate of fair value may significantly  differ from the fair market value that
would have been used had a ready market  existed for the  securities.  Appraised
values do not reflect  brokers'  fees or other normal  selling costs which might
become payable on disposition of such investments.

     Investments in companies whose securities are publicly traded are valued at
their quoted market price,  less a discount to reflect the estimated  effects of
restrictions  on  the  sale  of  such  securities  ("Valuation  Discount"),   if
applicable.

     Short-term  investments  having maturities of 60 days or less are stated at
amortized cost, which approximates fair value. Other fixed income securities are
stated at fair value.  Fair value of these  securities is determined at the most
recent  bid  or  yield  equivalent  from  dealers  that  make  markets  in  such
securities.


                                       8
<PAGE>

     The directors  review the valuation  policies on a quarterly  basis or more
frequently if deemed necessary to determine their  appropriateness  and may also
hire  independent  firms to review the Adviser's  methodology of valuation or to
conduct an independent valuation.

CUSTODIAN

     The Fund has entered  into an  agreement  with State  Street Bank and Trust
Company  to  act  as the  custodian  with  respect  to  the  safekeeping  of its
securities.  The  principal  business  office of the  custodian  is 225 Franklin
Street, Boston, Massachusetts, 02110.

TRANSFER AGENT AND DISBURSING AGENT

     The Fund employs EquiServe as its transfer agent to record transfers of the
shares,  maintain  proxy  records and to process  distributions.  The  principal
business  office of such company is 150 Royall  Street,  Canton,  Massachusetts,
02021.

FACTORS THAT MAY AFFECT FUTURE  RESULTS,  THE MARKET PRICE OF COMMON STOCK,  AND
THE ACCURACY OF FORWARD-LOOKING STATEMENTS

     In the normal  course of its  business,  the Fund, in an effort to keep its
stockholders  and the public informed about the Fund's  operations and portfolio
of  investments,  may from  time-to-time  issue  certain  statements,  either in
writing or orally,  that  contain or may  contain  forward-looking  information.
Generally,  these statements  relate to business plans or strategies of the Fund
or Portfolio Companies in which it invests, projected or anticipated benefits or
consequences of such plans or strategies,  projected or anticipated  benefits of
new or follow-on  investments  made by or to be made by the Fund, or projections
involving  anticipated  purchases or sales of securities or other aspects of the
Fund's  operating  results.  Forward-looking  statements  are not  guarantees of
future  performance and are subject to risks and uncertainties  that could cause
actual  results to differ  materially.  As noted  elsewhere in this report,  the
Fund's  operations  and  portfolio  of  investments  are  subject to a number of
uncertainties,  risks,  and  other  influences,  many of which are  outside  the
control of the Fund,  and any one of which,  or a  combination  of which,  could
materially  affect the results of the Fund's  operations or net asset value, the
market price of its common stock, and whether forward-looking statements made by
the Fund ultimately prove to be accurate.

     The following  discussion outlines certain factors that in the future could
affect  the  Fund's  results  for 2001  and  beyond  and  cause  them to  differ
materially  from  those that may be set forth in any  forward-looking  statement
made by or on behalf of the Fund:

     LONG-TERM  OBJECTIVE.  The Fund is intended for investors seeking long-term
capital growth. The Fund is not meant to provide a vehicle for those who wish to
play short-term swings in the stock market. The Portfolio  Companies acquired by
the Fund generally require several or many years to reach maturity and generally
are  illiquid.  An  investment  in shares of the Fund should not be considered a
complete investment program. Each prospective purchaser should take into account
their investment  objectives as well as their other investments when considering
the purchase of shares of the Fund.

     NON-DIVERSIFIED STATUS; NUMBER OF INVESTMENTS.  The Fund is classified as a
"non-diversified"  investment  company under the  Investment  Company Act, which
means  the Fund is not  limited  in the  proportion  of its  assets  that may be
invested in the  securities  of a single  issuer.  Generally,  the Fund does not
intend to  initially  invest  more  than 5% of the value of its net  assets in a
single Portfolio Company.  However,  follow-on investments or a disproportionate
increase in the value of one Portfolio  Company may result in greater than 5% of
the Fund's net assets being invested in a single Portfolio Company.  While these
restrictions  limit  the  exposure  of the  capital  of the  Fund in any  single
investment,  to the extent the Fund takes large positions in the securities


                                       9
<PAGE>

of a small number of issuers, the Fund will be exposed to a greater risk of loss
and the Fund's  net asset  value and the  market  price of its common  stock may
fluctuate as a result of changes in the financial condition, the stock price of,
or in the  market's  assessment  of any  single  Portfolio  Company to a greater
extent  than  would  be the  case if it  were a  "diversified"  company  holding
numerous  investments.  The  Fund  currently  has  investments  in 22  Portfolio
Companies, of which none exceed 5% of the net asset value.

     LACK OF LIQUIDITY OF PORTFOLIO  INVESTMENTS.  The portfolio  investments of
the Fund consist  principally of securities  that are subject to restrictions on
sale  because  they  were  acquired  from  the  issuer  in  "private  placement"
transactions  or because  the Fund is deemed to be an  affiliate  of the issuer.
Generally,  the Fund will not be able to sell these securities  publicly without
the expense and time required to register the  securities  under the  Securities
Act  and  applicable   state  securities  law  unless  an  exemption  from  such
registration  requirements is available.  In addition,  contractual or practical
limitations  may restrict  the Fund's  ability to liquidate  its  securities  in
Portfolio Companies since in many cases the securities of such companies will be
privately  held  and the  Fund  may own a  relatively  large  percentage  of the
issuer's outstanding securities.  Sales may also be limited by securities market
conditions,  which may be  unfavorable  for sales of  securities  of  particular
issuers or issuers in particular industries.  The above limitations on liquidity
of the  Fund's  securities  could  preclude  or delay  any  disposition  of such
securities or reduce the amount of proceeds that might otherwise be realized.

     NEED FOR FOLLOW-ON  INVESTMENTS IN PORTFOLIO  COMPANIES.  After its initial
investment in a Portfolio Company, the Fund may be called upon from time to time
to provide  additional funds to such company or have the opportunity to increase
its  investment in a successful  situation,  e.g.,  the exercise of a warrant to
purchase  common stock.  There is no assurance  that the Fund will make, or have
sufficient funds to make, follow-on investments. Any decision by the Fund not to
make a  follow-on  investment  or any  inability  on its  part to  make  such an
investment may have a negative impact on a Portfolio  Company in need of such an
investment  or may result in a missed  opportunity  for the Fund to increase its
participation  in a  successful  operation  and may  dilute  the  Fund's  equity
interest in or reduce the expected yield on its investment.

     COMPETITION FOR  INVESTMENTS.  The Fund encounters  competition  from other
persons or  entities  with  similar  investment  objectives.  These  competitors
include venture capital partnerships,  investment partnerships and corporations,
small business  investment  companies,  large industrial and financial companies
investing directly or through affiliates,  other business development companies,
foreign  investors of various types and individuals.  Many of these  competitors
have greater  financial  resources and more  personnel  than the Fund and may be
subject to different and frequently less stringent regulation.

     LOSS OF CONDUIT  TAX  TREATMENT.  The Fund may cease to qualify for conduit
tax  treatment if it is unable to comply with the  diversification  requirements
contained in Subchapter M of the Code.  Subchapter M requires that at the end of
each quarter (i) at least 50% of the value of the Fund's  assets must consist of
cash,  government  securities and other securities of any one issuer that do not
represent  more than 5% of the value of the Fund's  total  assets and 10% of the
outstanding  voting securities of such issuer,  and (ii) no more than 25% of the
value of the Fund's  assets may be invested in the  securities of any one issuer
(other than United States government securities), or of two or more issuers that
are  controlled  by the Fund and are  engaged  in the same or similar or related
trades  or  businesses.  If the  Fund  fails  to  satisfy  such  diversification
requirements  and ceases to qualify for conduit tax treatment,  the Fund will be
subject to income tax on its income and gains and  stockholders  will be subject
to income tax on  distributions.  The Fund may also cease to qualify for conduit
tax  treatment,  or be subject to a 4% excise tax, if it fails to  distribute  a
sufficient portion of its net investment income and net realized capital gains.

     MARKET VALUE AND NET ASSET VALUE. The shares of the Fund's common stock are
listed on the NYSE.  Investors  desiring  liquidity  may trade  their  shares of
common stock on the NYSE at current market value, which may differ from the then
current net asset value (Shareholders'  Equity). Shares of closed-end investment
companies   frequently   trade  at  a  discount  from  net  asset  value.   This
characteristic  of shares of a closed-end  fund


                                       10
<PAGE>

is a risk  separate and  distinct  from the risk that the Fund's net asset value
will  decrease.  The risk of purchasing  shares of a closed-end  fund that might
trade at a discount  is more  pronounced  for  investors  who wish to sell their
shares in a  relatively  short  period  of time  because  for  those  investors,
realization  of a gain  or  loss  on  their  investments  is  likely  to be more
dependent  upon the  existence  of a premium  or  discount  than upon  portfolio
performance.  The Fund's  shares  have traded at a  significant  discount to net
asset value since they began  trading.  For  information  concerning the trading
history of the Fund's  shares see  "Market  for  Registrant's  Common  Stock and
Related Stockholder Matters."

     VALUATION OF INVESTMENTS.  The Fund's net asset value is based on the value
assigned to its portfolio investments. Investments in companies whose securities
are publicly traded are valued at their quoted market price,  less a discount to
reflect the estimated effects of restrictions on the sale of such securities, if
applicable. The Fund adjusts its net asset value for changes in the value of its
publicly  held  securities,  if any, on a daily  basis.  The value of the Fund's
investments  in  securities  for which market  quotations  are not  available is
determined  as of the end of each  fiscal  quarter but  monitored  daily in case
there is a  significant  event  requiring a change in  valuation in the interim.
Cost is used to approximate  fair value of such  investments  until  significant
developments  affecting  an  investment  provide a basis for use of an appraisal
valuation.  Thereafter,  such  portfolio  investments  are carried at  appraised
values as determined at least quarterly.  Due to the inherent uncertainty of the
valuation of portfolio securities which do not have readily ascertainable market
values, the Fund's estimate of fair value may significantly differ from the fair
value that would have been used had a ready market  existed for the  securities.
At October 31, 2001, 100% of the preferred stocks in Portfolio Companies held by
the Fund, representing  approximately 35.73% of the Fund's net asset value, were
invested in securities for which market  quotations were not readily  available.
See "Valuation".

     POSSIBLE  VOLATILITY OF STOCK PRICE.  The market price of the Fund's common
stock could be subject to significant  fluctuations in response to variations in
the net asset value of the Fund,  its  quarterly  operating  results,  and other
factors.  The market price of the common stock may be significantly  affected by
such factors as the  announcement  of new or follow-on  investments in Portfolio
Companies,  the sale or proposed sale of a portfolio investment,  the results of
operations or  fluctuations  in the market  prices or appraised  value of one or
more of the Fund's Portfolio Companies,  changes in earnings estimates by market
analysts,  speculation  in the press or analyst  community  and  general  market
conditions or market conditions specific to particular industries.  From time to
time in recent years, the securities markets have experienced  significant price
and volume  fluctuations that have often been unrelated or  disproportionate  to
the operating performance of particular companies.  These broad fluctuations may
adversely affect the market price of the common stock. In addition,  the Fund is
subject to the risk of the securities markets in which the portfolio  securities
of the Fund are traded.  Securities  markets are  cyclical and the prices of the
securities traded in such markets rise and fall at various times. These cyclical
periods may extend over significant periods of time.

REGULATION

     The Investment  Advisers Act generally  prohibits  investment advisers from
entering into  investment  advisory  contracts  with an investment  company that
provides for  compensation to the investment  adviser on the basis of a share of
capital  gains or  capital  appreciation  of the  portfolio  investments  or any
portion of the funds of the  investment  company or pursuant  to a stock  option
plan.  The  Investment  Advisers  Act,  however,  does  permit  the  payment  of
compensation  based on capital gains or the issuance of incentive  stock options
to management in an investment  advisory contract between an investment  adviser
and a  business  development  company.  The Fund has  elected to be treated as a
business development company under the Investment Company Act.  Accordingly,  it
has  provided for  incentive  compensation  to the Adviser  based on the capital
appreciation of the Fund's investments.

     The  Fund  may not  withdraw  its  election  to be  treated  as a  business
development  company  without  first  obtaining  the  approval  of a majority in
interest of its shareholders.  The following brief description of the


                                       11
<PAGE>

Investment  Company Act is  qualified  in its  entirety by reference to the full
text of the Investment Company Act and the rules thereunder.

     A  business  development  company  must  be  operated  for the  purpose  of
investing in the securities of certain  present and former  "eligible  Portfolio
Companies" or certain  bankrupt or insolvent  companies and must make  available
significant managerial assistance to Portfolio Companies.  An eligible Portfolio
Company  generally is a company that (i) is organized under the laws of, and has
its  principal  place  of  business  in,  any  state or  states,  (ii) is not an
investment  company and (iii)(a) does not have a class of securities  registered
on an  exchange or included  in the  Federal  Reserve  Board's  over-the-counter
margin list,  (b) is actively  controlled  by the business  development  company
acting  either alone or as part of a group  acting  together and an affiliate of
the business development company is a member of the Portfolio Company's board of
directors  or (c) meets such other  criteria as may be  established  by the SEC.
Control is presumed to exist where the  business  development  company owns more
than 25% of the outstanding voting securities of a Portfolio Company.

     "Making available significant  managerial  assistance" is defined under the
Investment  Company  Act  to  mean  (i)  any  arrangement   whereby  a  business
development  company,  through its directors,  officers or employees,  offers to
provide  and,  if  accepted,  does  provide  significant  guidance  and  counsel
concerning the  management,  operations or business  objectives or policies of a
Portfolio  Company or (ii) the  exercise  of a  controlling  influence  over the
management  or  policies  of a  Portfolio  Company by the  business  development
company  acting  individually  or as part  of a  group  of  which  the  business
development  company is a member  acting  together  which  controls such company
("Managed Company"). A business development company may satisfy the requirements
of clause (i) with respect to a Portfolio  Company by  purchasing  securities of
such a company as part of a group of investors  acting together if one person in
such group  provides the type of assistance  described in such clause.  However,
the business  development  company will not satisfy the general  requirement  of
making  available  significant  managerial  assistance  if it only provides such
assistance  indirectly through an investor group. A business development company
need only extend  significant  managerial  assistance  with respect to Portfolio
Companies  which are treated as  Qualifying  Assets (as  defined  below) for the
purpose of satisfying the 70% test discussed below.

     The  Investment  Company Act prohibits or restricts the Fund from investing
in certain types of companies,  such as brokerage  firms,  insurance  companies,
investment  banking firms and  investment  companies.  Moreover,  the Investment
Company Act limits the type of assets  that the Fund may acquire to  "Qualifying
Assets"  and  certain  assets  necessary  for its  operations  (such  as  office
furniture,  equipment and facilities) if, at the time of the  acquisition,  less
than 70% of the value of the Fund's total assets consists of qualifying  assets.
Qualifying  Assets  include  (i)  securities  of  companies  that were  eligible
Portfolio  Companies at the time that the Fund acquired their  securities;  (ii)
securities  of  companies  that  are  actively  controlled  by the  Fund;  (iii)
securities of bankrupt or insolvent  companies  that are not otherwise  eligible
Portfolio  Companies;  (iv)  securities  acquired as  follow-on  investments  in
companies  that were  eligible  Portfolio  Companies  at the time of the  Fund's
initial  acquisition of their  securities but are no longer  eligible  Portfolio
Companies,  provided that the Fund has  maintained a substantial  portion of its
initial investment in such companies; (v) securities received in exchange for or
distributed  on or with  respect to any of the  foregoing;  and (vi) cash items,
government securities and high-quality,  short-term debt. The Investment Company
Act also places restrictions on the nature of the transactions in which, and the
persons from whom,  securities can be purchased in order for such  securities to
be considered Qualifying Assets. As a general matter, Qualifying Assets may only
be purchased from the issuer or an affiliate in a transaction not constituting a
public offering.  The Fund may not purchase any security on margin,  except such
short-term credits as are necessary for the clearance of portfolio transactions,
or engage in short sales of securities.

     The Fund is  permitted  by the  Investment  Company  Act,  under  specified
conditions,  to issue  multiple  classes  of senior  debt and a single  class of
preferred stock senior to the common stock if its asset coverage,  as defined in
the  Investment  Company Act, is at least 200% after the issuance of the debt or
the senior  stockholders'  interests.


                                       12
<PAGE>

In  addition,  provisions  must be made to prohibit any  distribution  to common
shareholders  or the repurchase of any shares unless the asset coverage ratio is
at least 200% at the time of the distribution or repurchase.

     The Fund  generally  may sell its  securities  at a price that is below the
prevailing  net asset  value per share only upon the  approval  of the policy by
shareholders  holding a majority of the shares  issued by the Fund,  including a
majority  of  shares  held by  nonaffiliated  shareholders.  The  Fund  may,  in
accordance with certain conditions established by the SEC, sell shares below net
asset  value  in  connection  with  the  distribution  of  rights  to all of its
stockholders.  The Fund may also  issue  shares at less than net asset  value in
payment of dividends to existing shareholders.

     Since the Fund is a closed-end business development  company,  stockholders
have no right to present  their shares to the Fund for  redemption.  Recognizing
the possibility  that the Fund's shares might trade at a discount,  the Board of
Directors of the Fund has  determined  that it would be in the best  interest of
stockholders  for the Fund to be  authorized to attempt to reduce or eliminate a
market value discount from net asset value.  Accordingly,  the Fund from time to
time may, but is not required to,  repurchase its shares  (including by means of
tender offers) to attempt to reduce or eliminate any discount or to increase the
net asset value of its shares, or both.

     Many of the transactions  involving the Fund and its affiliates (as well as
affiliates of such  affiliates)  require the prior approval of a majority of the
Independent  Directors  and a majority of the  Independent  Directors  having no
financial interest in the transactions.  However, certain transactions involving
closely affiliated persons of the Fund, including the Adviser, would require the
prior approval of the SEC. In general (a) any person who owns, controls or holds
with power to vote more than 5% of the outstanding  shares,  (b) any director or
executive  officer and (c) any person who directly or  indirectly  controls,  is
controlled by or is under common control with such person, must obtain the prior
approval of a majority of the Independent Directors and, in some situations, the
prior approval of the SEC, before engaging in certain transactions involving the
Fund or any company  controlled by the Fund. In accordance  with the  Investment
Company Act, a majority of the directors must be persons who are not "interested
persons" as defined in such act. Except for certain  transactions  which must be
approved by the Independent Directors, the Investment Company Act generally does
not restrict transactions between the Fund and its Portfolio Companies.


Item 2. Properties

     The Fund does not have any interest in any physical properties.

Item 3. Legal Proceedings

     Certain Portfolio Companies of the Fund are involved in asserted claims and
have the possibility for unasserted  claims which may ultimately  affect the net
asset value of the Fund or the fair value of the Fund's portfolio investments.

Item 4. Submission of Matters to a Vote of Security Holders

     On April 12, 2001, the Fund held its Annual Meeting of Shareholders. Of the
16,500,000 shares outstanding and entitled to vote, 13,435,125 were represented
at the meeting by proxy or in person. At the meeting the shareholders were asked
to re-elect John Grillos and Peter Freudenthal to serve on the Fund's Board of
Directors for three-year terms. For John Grillos, 12,797,723 shares voted for
his reelection, with 637,401 share votes


                                       13
<PAGE>

withheld.  For Peter  Freudenthal,  12,778,793  shares voted for his reelection,
with 656,331 share votes withheld.  Both of the directors received a majority of
the votes cast and were  subsequently  reelected  as directors of the Fund until
2004.

                                     Part II


Item 5. Market for Registrant's Common Equity and Related Stockholder Matters

     The  Fund's  shares of common  stock  began to trade on the New York  Stock
Exchange on June 26, 2000,  under the symbol "MVC".  The Fund had  approximately
17,000  shareholders  at October 31, 2001.  The net asset value per share of the
Fund's common stock at October 31, 2001, was $15.42.

     The following  table  reflects the high and low closing prices per share of
the Fund's common stock on the New York Stock Exchange for the fiscal year ended
October 31, 2001, by quarter.

                  QUARTER
                  ENDED             HIGH             LOW
                  --------          -------          --------
                  01/31/01          $12.875          $ 9.9375
                  04/30/01          $12.49           $10.16
                  07/31/01          $12.20           $10.70
                  10/31/01          $11.05           $ 9.20

     As a regulated  investment company under Subchapter M of the Code, the Fund
is required to distribute to its shareholders,  in a timely manner, at least 90%
of its taxable net investment  income each year. If the Fund  distributes,  in a
timely  manner,  98% of its taxable net capital gains and 98% of its taxable net
investment  income  each  year  (as well as any  portion  of the  respective  2%
balances not distributed in the previous year), it will not be subject to the 4%
non-deductible  federal excise tax on certain  undistributed income of regulated
investment  companies.  Under  the  Investment  Company  Act,  the  Fund  is not
permitted  to pay  dividends  to  shareholders  unless  it meets  certain  asset
coverage requirements.

     The Fund is investing in companies  that it believes have a high  potential
for capital  appreciation,  and the Fund  intends to realize the majority of its
profits upon the sale of its investments in Portfolio  Companies.  Consequently,
it is likely that few or none of the  companies  in which the Fund  invests will
have established policies of paying annual dividends.

     The Fund reserves the right to retain net long-term capital gains in excess
of net short-term  capital losses for reinvestment or to pay  contingencies  and
expenses.  Such  retained  amounts,  if any,  will  be  taxable  to the  Fund as
long-term   capital  gains  and  shareholders   will  be  able  to  claim  their
proportionate  share of the federal  income taxes paid by the Fund on such gains
as a credit against their own federal income tax liabilities.  Stockholders will
also be entitled to increase  the adjusted tax basis of their Fund shares by the
difference between their undistributed capital gains and their tax credit.


Item 6. Selected Financial Data

     The information set forth under Item 8 is incorporated herein by reference.


                                       14
<PAGE>

Item 7. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

     This  report  contains  certain  statements  of  a  forward-looking  nature
relating to future events or the future financial performance of the Company and
its investment in Portfolio  Companies.  Words such as "may," "will,"  "expect,"
"believe,"  "anticipate,"  "intend," "could," "estimate," "might," or "continue"
or the  negative  or other  variations  thereof or  comparable  terminology  are
intended to identify forward-looking statements.  Forward-looking statements are
included in this report  pursuant to the "Safe Harbor"  provision of the Private
Securities  Litigation  Reform Act of 1995. Such statements are only predictions
and the  actual  events  or  results  may  differ  materially  from the  results
discussed  in the  forward-looking  statements.  Factors  that  could  cause  or
contribute to such differences  include,  but are not limited to, those relating
to investment capital demand, pricing, market acceptance, the effect of economic
conditions,  litigation  and the effect of regulatory  proceedings,  competitive
forces, the results of financing and investing efforts,  the ability to complete
transactions and other risks  identified below or in the Company's  filings with
the  Commission.  Readers are  cautioned  not to place  undue  reliance on these
forward-looking statements,  which speak only as of the date hereof. The Company
undertakes no obligation to publicly revise these forward-looking  statements to
reflect events or  circumstances  occurring  after the date hereof or to reflect
the occurrence of unanticipated  events. The following analysis of the financial
condition and results of operation of the Company  should be read in conjunction
with the  Financial  Statements,  the  Notes  thereto  and the  other  financial
information included elsewhere in this report.

GENERAL INVESTMENT CLIMATE

     Over  the  course  of  the  reporting   year,  we  witnessed  a  pronounced
contraction in both the public and private equity markets. The public technology
sector  was hit  particularly  hard as it  became  clear to  investors  that the
"irrational  exuberance"  which  reached  its  peak in early  2000  had  created
considerably  over-inflated  valuations  for  technology  stocks.  The resulting
correction,  which began in the second  quarter of 2000,  continued its downward
drift  through the third  quarter of 2001 as corporate  profits  sank,  business
activity slowed, and the availability of capital quickly dried up.

     Just as the technology  sector had spearheaded the boom of the late 1990's,
its  deterioration  significantly  contributed  to the  erosion  of the  overall
economy. The declining demand from businesses and consumers for new products and
services  resulted  in  grossly  overstocked   inventories  and  an  overcrowded
technology market.  Despite the Fed's aggressive  attempts to dampen the effects
of an inevitable consolidation, as well as President Bush's supportive tax cuts,
the economy continued to skid into what is now recognized as a mild recession.

     The  private  technology  market,  though  typically  more  insulated  from
systematic market risk, was clearly not immune to the public market and economic
downturn.  The  difficult  environment  in which  private  technology  companies
continued  to operate  was  reflected  by the Fund  writing  down the value of a
number of its investments during the reporting period, primarily those companies
funded in 2000.  Notwithstanding the reduced  valuations,  the Fund continued to
finance and support its existing Portfolio Companies, focusing extensive efforts
on those that it feels will weather the storm and emerge leaner,  stronger,  and
poised to take advantage of improved market conditions.

     With respect to the Fund's  current  investment  environment,  the deflated
market  capitalizations  of public technology  companies and the lack of IPO and
profitable merger and acquisition  opportunities presented so far this year have
created conditions that we believe may significantly benefit shareholders in the
long run. The reduced valuations of private information technology companies are
considerably more reasonable,  and the liquidation preferences and anti-dilution
provisions  that the Fund is able to  negotiate  into the terms of each new deal
have improved substantially.  In addition, a large number of venture capitalists
have been  spending  a  majority  of their time  supporting  existing  Portfolio
Companies.  This decreased  competition for new deals has allowed liquid venture
capital funds,  such as ours, more time to diligently  research and scrupulously
invest in new companies.


                                       15
<PAGE>

     Looking forward,  although corporate earnings for technology companies will
likely  continue to reflect  diminished  business  activity in the near term, we
believe that much of the  correction in this sector,  as well as for the overall
economy,  has already been  absorbed.  Furthermore,  it is likely that the Fed's
continuing  monetary  stimulus,  as well as the fiscal response to the events of
September 11, will provide a strong  foundation  for economic  recovery.  With a
significant cash position  remaining to be invested,  and an existing  portfolio
containing  promising young companies,  we feel that the Fund is in an excellent
position to generate  strong,  long-term  gains for  shareholders as information
technology  once  again  becomes a  driving  force  behind a return to  economic
growth.

LIQUIDITY AND CAPITAL RESOURCES

     At October 31, 2001, the Fund had  $90,926,328 of its net assets (the value
of total assets less total  liabilities) of  $254,471,556  invested in Portfolio
Companies  of 22  companies  and  $163,726,799  of its net  assets  invested  in
temporary investments  consisting of Certificates of Deposit,  commercial paper,
money market funds, and U.S.  government and agency securities.  Current balance
sheet resources are believed to be sufficient to finance any future commitments.

     Net cash used for operating  activities was  $97,762,094 for the year ended
October 31, 2001.

     Net  investment  income and net realized  gains from the sales of portfolio
investments  are  intended  to be  distributed  at  least  annually.  Management
believes  that  its  cash  reserves  and  the  ability  to  sell  its  temporary
investments in publicly  traded  securities are adequate to provide  payment for
any expenses and contingencies of the Fund.

     The Fund reserves the right to retain net long-term capital gains in excess
of net short-term  capital losses for reinvestment or to pay  contingencies  and
expenses.  Such  retained  amounts,  if any,  will  be  taxable  to the  Fund as
long-term   capital  gains,  and  shareholders  will  be  able  to  claim  their
proportionate  share of the federal  income taxes paid by the Fund on such gains
as a credit against their own federal income-tax liabilities.  Shareholders will
also be entitled to increase  the adjusted tax basis of their Fund shares by the
difference between their undistributed capital gains and their tax credit.

RESULTS OF OPERATIONS

INVESTMENT INCOME AND EXPENSE

     Net investment  income after all operating  expenses amounted to $1,658,465
for the year ended October 31, 2001.

     The Adviser  receives  management fee compensation at an annual rate of 2.5
percent of the average  weekly net assets of the Fund,  paid monthly in arrears.
Such fees amounted to $7,388,061 for the year ended October 31, 2001.

REALIZED GAINS AND LOSSES ON SALES OF PORTFOLIO SECURITIES

     The Fund  realized a net capital gain of $5,123 from the sale of short-term
securities during the year ended October 31, 2001.


                                       16
<PAGE>

UNREALIZED APPRECIATION AND DEPRECIATION OF PORTFOLIO SECURITIES

     For the  year  ended  October  31,  2001,  the  Fund  had a net  unrealized
depreciation of $52,994,121. Such depreciation resulted mainly from the Board of
Directors' decision to mark down the value of the Fund's investments in Annuncio
Software, Inc.; AuctionWatch.com,  Inc.; BlueStar Solutions, Inc.; Cidera, Inc.;
Endymion Systems,  Inc.; EXP Systems,  Inc.;  FOLIOfn,  Inc.;  InfoImage,  Inc.;
infoUSA.com,  Inc.;  IQdesination;   Ishoni  Networks,  Inc.;  Pagoo.com,  Inc.;
Personic Software, Inc.; SafeStone Technologies PLC; and ShopEaze Systems, Inc.

DIVIDENDS

     On December 5, 2000, the Fund announced an ordinary income cash dividend of
$0.34210 per share, payable on January 3, 2001, to stockholders of record at the
close of business on December 8, 2000. The Fund went  ex-dividend on December 6,
2000. Distributions can be made payable by the Fund in the form of either a cash
distribution or a stock dividend.  On the Fund's  ex-dividend date, the Fund was
trading on the New York Stock  Exchange  (the "NYSE") at a discount to net asset
value.  In  accordance  with  the  Dividend   Reinvestment  Plan,  the  Dividend
Distribution  Agent  purchased  shares on the open  market of the NYSE for those
shareholders  electing  to  take  their  distributions  in  the  form  of  stock
dividends.

PORTFOLIO INVESTMENTS

     At  October  31,  2001,  the  cost of  equity  and  equity-linked  security
investments  made by the  Fund to date was  $148,886,310,  and  their  aggregate
market  value was  estimated  to be  $90,926,328.  While the  current  values of
certain Portfolio Companies have been reduced,  Management believes that many of
the companies identified have upside potential for long-term growth in sales and
earnings. The Sub-Adviser  continuously evaluates  opportunities to maximize the
valuation of its investments.  In that regard the Sub-Adviser will  periodically
evaluate  potential  acquisitions,   financing   transactions,   initial  public
offerings,  strategic  alliances  and sale  opportunities  involving  the Fund's
Portfolio  Companies.  These  transactions  and  activities  are  generally  not
disclosed to the Fund's shareholders and the investing public until such time as
the  transactions are publicly  announced or completed,  as the case may be. Any
such pending transaction could have an impact on the valuation of an investment,
however,  which  may be  adjusted  prior  to the  transaction's  being  publicly
announced or completed.

SUBSEQUENT EVENTS

     On November 29, 2001, the Fund entered into an investment of  approximately
$4,000,000  of Series E  Preferred  Stock of 0-In  Design  Automation,  Inc.

     On December 4, 2001 the Fund  declared an ordinary  income cash dividend of
$0.044163 per share,  payable on January 3, 2002, to  stockholders  of record at
the close of  business  on  December  10,  2001.  The Fund went  ex-dividend  on
December 6, 2001.


                                       17
<PAGE>

Item 7A. Quantitative and Qualitative Disclosure about Market Risk

     The Fund is  subject  to  financial  market  risks,  including  changes  in
interest  rates with respect to its  investments  in debt  securities as well as
changes in marketable  equity security prices.  The Fund does not use derivative
financial  instruments to mitigate any of these risks.  The return on the Fund's
investments is generally not affected by foreign-currency fluctuations.

     The Fund's investment in portfolio  securities  consists of some fixed rate
debt securities. Since the debt securities are generally priced at a fixed rate,
changes in interest rates do not directly  impact  interest  income.  The Fund's
debt  securities  are  generally  held to  maturity  and their  fair  values are
determined  on the basis of the  terms of the debt  security  and the  financial
condition of the issuer.

     Concentrations  of market  and credit  risk exist with  respect to debt and
equity investments in Portfolio  Companies which are subject to significant risk
usual to companies in various stages of start-up.  Generally,  there is no ready
market for the Fund's  investments,  as they are  closely  held,  generally  not
publicly traded or, in circumstances where an investment is publicly traded, the
Fund may be subject to certain trading  restrictions  for a specified  period of
time.


                                       18
<PAGE>

Item 8. Financial Statements and Supplementary Data


                              FINANCIAL STATEMENTS


                    meVC Draper Fisher Jurvetson Fund I, Inc.
                                 Balance Sheets
                                    <TABLE>
<CAPTION>

                                                                             October 31,            October 31,
ASSETS                                                                           2001                  2000
<S>                                                                          <C>                    <C>
     Investments in preferred stocks, at fair value
     (cost $148,886,310 and $112,554,476, respectively), (Note 2).......   $  90,926,328          $ 107,554,476
     Investments in short-term securities, at market value
     (cost $151,320,526 and $88,073,112, respectively), (Note 2) .......     151,373,377             88,159,616
     Cash and cash equivalents
     (cost $12,353,422 and $115,759,680, respectively), (Note 2) .......      12,353,422            115,760,166
     Interest receivable ...............................................         396,656                640,620
                                                                           -------------          -------------
     Total Assets ......................................................     255,049,783            312,114,878
                                                                           =============          =============

     LIABILITIES AND SHAREHOLDERS' EQUITY

     Liabilities:
     Management fee payable, (Notes 3, 5) ..............................         578,227                668,139
                                                                           -------------          -------------

     Shareholders' Equity:
         Common Stock, $0.01 par value; 150,000,000 shares
              authorized and 16,500,000 outstanding ....................         165,000                165,000
         Additional paid in capital ....................................     311,485,000            311,485,000
         Retained deficit ..............................................     (57,178,444)              (203,261)
                                                                           -------------          -------------
     Total Shareholders' Equity ........................................     254,471,556            311,446,739
                                                                           -------------          -------------

     Total Liabilities and Shareholders' Equity ........................   $ 255,049,783          $ 312,114,878
                                                                           =============          =============

     Net Asset Value Per Share .........................................   $       15.42          $       18.88
                                                                           =============          =============
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       19
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                            Statements of Operations

<TABLE>
<CAPTION>
                                                                                                  For the Period
                                                                        For the Year Ended       March 31, 2000*
                                                                         October 31, 2001       to October 31, 2000
<S>                                                                        <C>                       <C>
Investment Income:
              Interest income ..........................................   $  9,046,526              $ 9,325,822

     Operating Expenses:
              Management fees (Notes 3, 5) .............................      7,388,061                4,615,284
                                                                           ------------              -----------

     Net investment income .............................................      1,658,465                4,710,538
                                                                           ------------              -----------

     Net Realized and Unrealized Gain (Loss) on
     Investment Transactions:

     Net realized gain (loss) on
              investment transactions ..................................          5,123                     (789)

     Net unrealized depreciation on
              investment transactions ..................................    (52,994,121)              (4,913,010)
                                                                           ------------              -----------

     Net realized and unrealized loss on
              investment transactions ..................................    (52,988,998)              (4,913,799)
                                                                           ------------              -----------


     Net decrease in net assets resulting
     from operations ...................................................   $(51,330,533)             $  (203,161)
                                                                           ============              ===========

     Net decrease in net assets resulting
     from operations per share .........................................   $      (3.12)             $     (0.01)
                                                                           ============              ===========

     Dividends declared per Share ......................................   $       0.34              $        --
                                                                           ============              ===========
</TABLE>


* Commencement of operations


   The accompanying notes are an integral part of these financial statements.


                                       20
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                            Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                                  For the period
                                                                        For the Year Ended        March 31, 2000*
                                                                         October 31, 2001       to October 31, 2000
<S>                                                                        <C>                    <C>
Cash Flows from Operating Activities:
    Net (decrease) increase in net assets resulting from operations ....   $ (51,330,533)         $      (203,261)
    Adjustments to reconcile net cash provided by operations:
         Realized (gain) loss ..........................................          (5,123)                     789
         Net unrealized depreciation ...................................      52,994,121                4,913,010
         Changes in assets and liabilities:
              Management fee payable ...................................         (89,912)                 668,139
              Interest receivable ......................................         243,964                 (640,620)
         Purchases of preferred stock ..................................     (36,331,834)            (112,554,476)
         Purchases of short-term investments ...........................    (218,380,747)            (102,055,901)
         Purchases of cash equivalents .................................    (955,884,612)          (2,508,601,655)
         Sales/Maturities of short-term investments ....................     185,569,861               14,983,808
         Sales/Maturities of cash equivalents ..........................     925,452,721            2,507,600,333
                                                                           -------------          ---------------
         Net cash provided by (used for) operating activities ..........     (97,762,094)            (195,889,834)
                                                                           -------------          ---------------

Cash Flows from Financing Activities:
         Gross proceeds from initial public offering ...................              --              330,000,000
         Sales load ....................................................              --              (16,500,000)
         Advisory fee, Prudential Securities Incorporated ..............              --               (1,500,000)
         Deferred offering costs (Note 2) ..............................              --                 (350,000)
         Redemption of seed money ......................................              --                   (5,000)
         Distributions .................................................      (5,644,650)                      --
                                                                           -------------          ---------------
         Net cash used for financing activities ........................      (5,644,650)             311,645,000
                                                                           -------------          ---------------
Net change in cash and cash equivalents for the period .................    (103,406,744)             115,755,166
                                                                           -------------          ---------------
Cash and cash equivalents, beginning of period .........................     115,760,166                    5,000
                                                                           -------------          ---------------
Cash and cash equivalents, end of the period ...........................   $  12,353,422          $   115,760,166
                                                                           =============          ===============
</TABLE>


* Commencement of operations.


   The accompanying notes are an integral part of these financial statements.


                                       21
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                        Statement of Shareholders' Equity

<TABLE>
<CAPTION>
                                                                       Additional                             Total
                                                        Common          Paid in            Retained        Shareholders'
                                                         Stock          Capital             Deficit           Equity
                                                        ------         ----------          --------        -------------
<S>                                                   <C>            <C>                <C>               <C>
Balance at March 31, 2000*                             $       3      $       4,997      $         --      $       5,000

Issuance of 16,500,000 shares through
   Initial public offering (Net of Offering Costs)       165,000        311,485,000                --        311,650,000
Redemption of seed shares                                     (3)            (4,997)               --             (5,000)
Net decrease in net assets from operations                    --                 --          (203,261)          (203,261)
                                                       ---------      -------------      ------------      -------------
Balance at October 31, 2000                            $ 165,000      $ 311,485,000      $   (203,261)     $ 311,446,739
                                                       ---------      -------------      ------------      -------------

Distributions from net investment income                      --                 --        (5,644,650)        (5,644,650)
Net decrease in net assets from operations                    --                 --       (51,330,533)       (51,330,533)
                                                       ---------      -------------      ------------      -------------
Balance at October 31, 2001                            $ 165,000      $ 311,485,000      $(57,178,444)     $ 254,471,556
                                                       =========      =============      ============      =============
</TABLE>


* Commencement of operations.


   The accompanying notes are an integral part of these financial statements.


                                       22
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                       Selected Per Share Data and Ratios

<TABLE>
<CAPTION>
                                                   For the Year Ended      For the Period
                                                        10/31/01        3/31/00* - 10/31/00
<S>                                                   <C>                  <C>
 Net asset value, beginning of period .............   $    18.88           $    18.89  (a)
 Income (loss) from investment operations:
    Net investment income .........................         0.10                 0.29
    Net realized and unrealized loss on investments        (3.22)               (0.30)
                                                      ----------           ----------
    Total from investment operations ..............        (3.12)               (0.01)
                                                      ----------           ----------
 Less distributions from:
    Net investment income .........................        (0.34)                  --
                                                      ----------           ----------
    Total distributions ...........................        (0.34)                  --
                                                      ----------           ----------
 Net asset value, end of period ...................   $    15.42           $    18.88
                                                      ==========           ==========
 Market Value, end of period ......................   $     9.25           $    11.50
                                                      ==========           ==========

Total Return - At NAV (b) .........................       (15.99)%              (0.05)%
Total Return - At Market (b) ......................       (17.26)%             (42.50)%(c)

Ratios and Supplemental Data:
Net assets, end of period (in thousands) ..........   $  254,472           $  311,447
Ratios to average net assets:
 Expenses (d) (Note 3) ............................         2.50%                2.50%
 Net investment income ............................         0.56%                1.49% (d)

</TABLE>

* Commencement of operations.

(a)  Initial  public  offering,  net of initial  sales  load,  underwriting  and
     offering costs of $1.11 per share.

(b)  Total   return  is   historical   and  assumes   changes  in  share  price,
     reinvestments  of all  dividends  and  distributions,  and no sales charge.
     Total return for periods of less than one year is not annualized.

(c)  For the  period  June 26,  2000  (commencement  of  trading on the NYSE) to
     October 31, 2000.

(d)  Annualized.


   The accompanying notes are an integral part of these financial statements.


                                       23
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                             Schedule of Investments
                                October 31, 2001

<TABLE>
<CAPTION>
                                                                                       Date of
                                                                                       Initial
Description                                                          Shares/Principal Investment       Cost        Value
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>         <C>         <C>           <C>
Preferred Stocks-35.73% (a, b) (Note 2, 3)

    Actelis Networks Inc., Series C ...................................    1,506,025   May 2001    $ 5,000,003   $5,000,003

    Annuncio Software Inc., Series E ..................................      625,000   July 2000     5,000,000    3,750,000

    AuctionWatch.com, Inc., Series C ..................................    1,047,619   June 2000     5,500,000    2,320,267

   *BlueStar Solutions, Inc. (Formerly eOnline, Inc.):
         Series C .....................................................    1,360,544   May 2000      9,999,998    2,500,000
         Series C Warrants, expire 5/26/03 ............................      136,054   May 2000             --           --

    Cidera, Inc., Series D ............................................      857,192   Aug. 2000     7,500,001    3,750,044

    DataPlay, Inc., Series D ..........................................    2,500,000   June 2001     7,500,000    7,500,000

   *Endymion Systems, Inc., Series A ..................................    7,156,760   June 2000     7,000,000    5,250,199

   *EXP Systems, Inc., Series C .......................................    1,748,252   June 2000    10,000,002    3,750,000

   *Foliofn, Inc., Series C ...........................................    5,802,259   June 2000    15,000,000    7,500,000

    InfoImage, Inc. Series AA Preferred ...............................   11,740,340   June 2001       352,210      352,210

    InfoImage, Inc
         Common Stock Warrants, expire 6/14/06.........................   92,663,933   June 2001            --           --
         Common Stock .................................................      933,120   June 2001     2,004,480           --

    InfoImage, Inc. ...................................................
         Series C Warrants for Common
              Stock, expire 6/2/10 ....................................      259,200   June 2000            --           --

   *infoUSA.com, Inc., Series B .......................................    2,145,922   June 2000     9,999,997    6,749,998

    Ishoni Networks, Inc, Series C ....................................    2,003,607   Nov. 2000    10,000,003    7,500,102

   *IQdestination, Series B ...........................................    1,150,000   Sep. 2000     2,300,000      816,500

   *IQdestination, Series C ...........................................    1,295,775   June 2001       920,000      920,000

    Lumeta Corporation, Series A ......................................      384,615   Oct. 2000       250,000      250,000

   *MediaPrise, Inc., Series A ........................................    2,196,193   Sep. 2000     2,000,000    2,000,000

   *Pagoo, Inc., Series C .............................................    3,412,969   July 2000     9,999,999    7,542,661

   *Pagoo, Inc., Series D .............................................    2,098,636   Feb. 2001     4,000,000    4,000,000

    Personic Software, Inc., Series F .................................      512,296   May 2000     10,000,000           --

    Personic Software, Inc.:
         Series G-1 ...................................................       38,958   Nov. 2000       760,460           --
         Series G-1 Warrants, expire 10/31/05 .........................      973,950   Nov. 2000            --           --
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       24
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                             Schedule of Investments
                                October 31, 2001

<TABLE>
<CAPTION>
                                                                       Date of
                                                                      Initial
Description                                          Shares/Principal Investment    Cost          Value
-------------------------------------------------------------------------------------------------------
<S>                                                      <C>              <C>    <C>          <C>
Preferred Stocks (cont.)

   *ProcessClaims, Inc., Series C ..................     6,250,000   June 2001   $2,000,000   $2,000,000

    Safestone Technologies PLC, Series A ............      650,401   Dec. 2000    3,499,157    2,624,368

   *ShopEaze Systems, Inc., Series B ...............     2,097,902   May  2000    6,000,000    2,250,000

   *Sonexis, Inc. (Formerly eYak, Inc.), Series C...     2,590,674   June 2000   10,000,000    9,999,976

    Yaga, Inc., Series A ............................      300,000   Nov. 2000      300,000      600,000

    Yaga, Inc.:
         Series B ..................................     1,000,000   June 2001    2,000,000    2,000,000
         Series B Warrants, expire 6/8/04 ..........       100,000   June 2001           --           --
                                                                                -----------  -----------

Total Preferred Stocks ...................................................      148,886,310   90,926,328
                                                                                -----------  -----------


Short-Term Securities-59.49% (b)

   Corporate Bonds-4.31%

    Caterpillar Financial Services Corp.
         2.210%, 02/12/2002 ........................     7,500,000   Oct. 2001    7,452,577    7,452,577

    Ford Motor Credit Corp.
         6.500%, 02/28/2002 ........................     2,500,000   Mar. 2001    2,511,010    2,526,130

    General Motors Acceptance Corp.
         5.350%, 12/07/2001 ........................     1,000,000   June 2001    1,001,322    1,001,322
                                                                                -----------  -----------

    Total Corporate Bonds ................................................       10,964,909   10,980,029
                                                                                -----------  -----------

   Certificates of Deposit-4.74%

    Commerica BK
         5.240%, 01/11/2002 ........................     4,000,000   Jan. 2001    4,000,151    4,000,151

    National City Corp.
         2.346%, 09/24/2002 ........................     4,500,000   June 2001    4,500,000    4,500,000

    State Street CD
         3.470%, 11/13/2001 ........................     3,550,000   June 2001    3,550,000    3,550,000
                                                                                -----------  -----------

     Total Certificates of Deposit .......................................       12,050,151   12,050,151
                                                                                -----------  -----------
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       25
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                             Schedule of Investments
                                October 31, 2001

<TABLE>
<CAPTION>
                                                                      Date of
                                                                       Initial
Description                                          Shares/Principal Investment      Cost         Value
-----------------------------------------------------------------------------------------------------------
<S>                                                       <C>         <C>          <C>          <C>
   U.S. Government & Agency Securities-22.03%

    Federal Home Loan Banks
         5.005%, 12/04/2001 ..........................    2,000,000   June 2001    $2,002,091   $ 2,005,270

    Federal Home Loan Mortgage Corp.
         6.625%, 08/15/2002 ..........................    3,000,000   Aug. 2001     3,087,930     3,106,131

    Federal Home Loan Mortgage Disc. Cons.
         0.000%, 11/16/2001 ..........................    6,022,000   July 2001     6,013,218     6,016,430

    Federal Home Loan Mortgage Disc. Cons.
         0.000%, 12/14/2001 ..........................    7,800,000   July 2001     7,767,392     7,780,531

    Federal Home Loan Mortgage Disc. Cons.
         3.360%, 12/21/2001 ..........................   10,000,000   Aug. 2001     9,953,333     9,953,333

    Federal Home Loan Mortgage Disc. Cons.
         2.170%, 06/28/2002 ..........................    5,975,000   Oct. 2001     5,888,922     5,888,922

    Federal National Mortgage Association
         3.680%, 03/05/02 ............................    5,750,000   July 2001     5,677,116     5,677,116

    Federal National Mortgage Association  Disc. Cons
         0.000%, 01/10/2002 ..........................    6,000,000   Aug. 2001     5,960,917     5,960,917

    Federal National Mortgage Association  Disc. Cons
         0.000%, 08/09/2002 ..........................   10,000,000   Aug. 2001     9,660,894     9,660,894
                                                                                   ----------   -----------


Total U.S. Government & Agency ................................................   56,011,813     56,049,544
                                                                                   ----------   -----------

   Commercial Paper-28.41%

    ABB Treasury Centre (U.S.A), Inc.
         3.500%, 12/27/2001 ..........................    7,000,000   Aug. 2001     6,961,889     6,961,889

    Allied Irish Banks
         3.360%, 11/26/2001 ..........................    7,000,000   Aug. 2001     6,983,667     6,983,667

    American Express Co.
         3.540%, 12/20/2001 ..........................    6,345,000   July 2001     6,314,428     6,314,428

    B.M.W. U.S. Cap. Corp.
         2.480%, 12/26/2001 ..........................    2,725,000   Sept. 2001    2,714,675     2,714,675

    B.P. Amoco Cap. plc
         2.370%, 03/26/2002 ..........................    2,700,000   Oct. 2001     2,674,226     2,674,226
         2.230%, 04/03/2002 ..........................    5,000,000   Oct. 2001     4,952,613     4,952,613
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       26
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                             Schedule of Investments
                                October 31, 2001

<TABLE>
<CAPTION>
                                                                 Date of
                                                                 Initial
Description                                    Shares/Principal Investment        Cost           Value
--------------------------------------------------------------------------------------------------------
<S>                                                <C>               <C>       <C>            <C>
    Commercial Paper (cont.)

    Ford Motor Credit Co.
         3.500%, 12/18/2001 ...................    4,950,000    Aug. 2001      $4,927,381     $4,927,381

    General Electric Cap Corp.
         3.220%, 12/13/2001 ...................   7,000,000     Sept. 2001      6,973,703      6,973,703

    General Motors Corp.
         3.750%, 03/04/02 .....................   3,500,000     July 2001       3,455,156      3,455,156

    M&I Marshall & Ilsley Bank
         4.320%, 05/02/2002 ...................   7,200,000     May 2001        7,199,651      7,199,651

    Pfizer, Inc.
         2.210%, 01/23/2002....................   4,200,000     Oct. 2001       4,178,600      4,178,600

    SBC Communications, Inc.
         3.370%, 11/29/2001 ...................   3,500,000     Aug. 2001       3,490,826      3,490,826

    Siemens Cap. Corp.
         2.450%, 05/06/2002 ...................   7,100,000     Oct. 2001       7,017,463      7,017,463

    Verizon Global Funding
         2.250%, 04/30/2002 ...................   4,500,000     Oct. 2001       4,449,375      4,449,375
                                                                             ------------    -----------

Total Commercial Paper.....................................................    72,293,653     72,293,653
                                                                             ------------    -----------


    Total Short Term Securities  ..........................................   151,320,526    151,373,377
                                                                             ------------    -----------


Cash and Cash Equivalents-4.86% (b)

   Commercial Paper-4.85%

    ABB Treasury Centre (USA), Inc.
         2.500%, 12/27/2001 ...................    700,000      Oct. 2001         697,278        697,278

    SBC Communications, Inc.
         2.450%, 12/19/2001 ...................  1,475,000      Sep. 2001       1,470,181      1,470,181

    Toyota Motor Credit Co.
         2.530%, 11/01/2001 ...................  7,700,000      Oct. 2001       7,700,000      7,700,000

    UBS Financial, Inc.
         3.370%, 11/20/2001....................  2,475,000      Aug. 2001       2,470,598      2,470,598
                                                                             ------------    -----------

    Total Commercial Paper.................................................    12,338,057     12,338,057
                                                                             ------------    -----------
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       27
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                             Schedule of Investments
                                October 31, 2001

<TABLE>
<CAPTION>

                                                               Date of
                                                               Initial
Description                                 Shares/Principal  Investment        Cost           Value
--------------------------------------------------------------------------------------------------------
<S>                                              <C>              <C>      <C>              <C>
   Money Market Funds-0.01%

    SSgA Money Market Fund
         2.598% ...........................      15,365      Oct. 2001     $     15,365     $     15,365
                                                                           ------------     ------------

Total  Cash and Cash Equivalents .....................................       12,353,422       12,353,422
                                                                           ------------     ------------

Total  Investments ...................................................     $312,560,258     $254,653,127
                                                                           ============     ============
</TABLE>

(a)  These securities are restricted from public sale without prior registration
     under the Securities Act of 1933. The Fund  negotiates  certain  aspects of
     the method and timing of the  disposition of these  investments,  including
     registration rights and related costs.

(b)  Percentages are based on net assets of $254,471,556.

* Affiliated Issuers (Total Market Value of $55,279,334): companies in which the
Fund owns at least 5% of the voting securities.


   The accompanying notes are an integral part of these financial statements.


                                       28
<PAGE>

                    meVC Draper Fisher Jurvetson Fund I, Inc.
                          Notes to Financial Statements
                                October 31, 2001


1. Organization and Business Purpose

     meVC Draper  Fisher  Jurvetson  Fund I, Inc.  (the  "Fund"),  a  closed-end
investment company sponsored by meVC.com, Inc. ("meVC.com"),  was organized as a
Delaware  corporation on December 2, 1999 and commenced  operations on March 31,
2000. The largest  investor in meVC.com is the Draper Fisher  Jurvetson Fund VI,
L.P. The Fund seeks to achieve  long-term  capital  appreciation from equity and
equity-oriented  securities  issued by privately owned companies in transactions
negotiated directly with such companies ("Portfolio Companies").  The Fund seeks
to  make  venture  capital  investments  in  information  technology  companies,
primarily in the Internet, e-commerce, telecommunications,  networking, software
and  information  services  industries.  The  Fund's  investments  in  Portfolio
Companies  will  consist  principally  of equity  securities  such as common and
preferred stock, but may also include other  equity-oriented  securities such as
debt  convertible into common or preferred stock or debt combined with warrants,
options or other rights to acquire common or preferred stock.  Current income is
not a significant factor in the selection of Portfolio Company investments.  The
Fund has  elected  to be treated as a  business  development  company  under the
Investment  Company Act of 1940, as amended ("the Act").  The shares of the Fund
commenced  trading on the New York Stock  Exchange  (the  "Exchange")  under the
symbol MVC on June 26, 2000. As described in the Fund's  definitive  Prospectus,
dated  March  28,  2000  (the  "Public  Offering  Date"),  the  Shares  had been
authorized to list on the Exchange,  subject to official notice of issuance, but
the Fund and the Exchange mutually agreed that the commencement of trading would
be delayed until not later than 90 days from the Public  Offering Date. The Fund
has  entered  into  an  advisory  agreement  with  meVC  Advisers,  Inc.  ("meVC
Advisers"),  a  wholly-owned  subsidiary of meVC.com.  meVC Advisers has entered
into a sub-advisory  agreement with Draper Fisher Jurvetson MeVC Management Co.,
LLC (the "Sub-Adviser").

2. Significant Accounting Policies

The following is a summary of significant  accounting  policies  followed by the
Fund in the preparation of its financial statements:

The preparation of financial statements in accordance with accounting principles
generally  accepted in the United States of America requires  management to make
estimates and  assumptions  that affect the reported  amounts and disclosures in
the financial statements. Actual results could differ from those estimates.

     In November  2000 the American  Institute of Certified  Public  Accountants
(AICPA)  issued a revised  version of the AICPA Audit and  Accounting  Guide for
Investment  Companies (the "Guide").  The Fund has adopted the provisions of the
Guide,  which is effective  for annual  financial  statements  issued for fiscal
years  beginning  after  December  15, 2000.  The Guide will require  investment
companies  to amortize  premiums  and  discounts  on debt  securities.  The Fund
currently follows this policy and as such the adoption of the Guide did not have
any material effect on the financial statements.

     Valuation of  Investments - Investments  in preferred  stock are carried at
fair  value  with the net  change in  unrealized  appreciation  or  depreciation
included  in the  determination  of net assets  (the value of total  assets less
total liabilities).  Cost is used to approximate fair value of these investments
until  significant  developments  affecting  an  investment  provide a basis for
valuing such investment at a number other than cost.

     The fair value of investments for which no market exists and for which the
Board of Directors has determined that the original cost of the investment is no
longer an appropriate valuation will be determined on the basis of procedures
established in good faith by our Board of Directors. Valuations will be based
upon such factors as the financial and/or operating results of the most recent
fiscal period, the performance of the company


                                       29
<PAGE>

relative to planned budgets/forecasts,  the issuer's financial condition and the
markets in which it does  business,  the prices of any  recent  transactions  or
offerings  regarding  such  securities  or any proxy  securities,  any available
analysis,  media, or other reports or information  regarding the issuer,  or the
markets or  industry in which it  operates,  the nature of any  restrictions  on
disposition  of the  securities  and  other  analytical  data.  In the  case  of
unsuccessful operations, the valuation may be based upon anticipated liquidation
proceeds.

     Because  of  the  inherent   uncertainty  of  the  valuation  of  portfolio
securities  which do not have readily  ascertainable  market values,  the Fund's
estimate of fair value may significantly  differ from the fair market value that
would have been used had a ready market  existed for the  securities.  Appraised
values do not reflect  brokers'  fees or other normal  selling costs which might
become payable on disposition of such investments.

     Investments  in  companies  whose  securities  are  publicly  traded  on an
organized  exchange  are valued at their quoted  closing  market  price,  less a
discount to reflect the estimated  effects of  restrictions  on the sale of such
securities ("Valuation Discount"), if applicable. Investments in companies whose
securities are publicly  traded in the over the counter market are valued at the
average  closing of their Bid and Ask  prices,  less a discount  to reflect  the
estimated  effects of restrictions  on the sale of such  securities  ("Valuation
Discount"),  if  applicable.  If a  reliable  last  bid  and ask  price  are not
available,  market values for equity securities are determined based on the last
reliable bid quotation available from a market maker in the security.

     Short-term  investments  (securities  which have  maturities of one year or
less),  including  cash  equivalents,  having  maturities of 60 days or less are
stated at amortized  cost,  which  approximates  fair value.  Other fixed income
securities  are  stated  at fair  value.  Fair  value  of  these  securities  is
determined  at the most recent bid or yield  equivalent  from  dealers that make
markets in such securities.

     Investment   Transactions  and  Related   Investment  Income  -  Investment
transactions  are  accounted for on the trade date (the date the order to buy or
sell is  executed).  The cost of  securities  sold is  determined on a first-in,
first-out  basis,  unless  otherwise  specified.  Dividend  income on investment
securities is recorded on the ex-dividend date. Interest income,  which includes
accretion of discount and amortization of premium, if applicable, is recorded on
the accrual basis.


     Cash and Cash Equivalents - For the purpose of the Statement of Cash Flows,
the Fund  considers  all money  market  and all  highly  liquid  temporary  cash
investments  purchased  with an original  maturity of three months or less to be
cash equivalents.

     Restricted Securities - The Fund will invest in privately placed restricted
securities.   These  securities  may  be  resold  in  transactions  exempt  from
registration  or to the public if the  securities  are  registered.  Disposal of
these  securities may involve  time-consuming  negotiations  and expense,  and a
prompt sale at an acceptable price may be difficult.

     Income  Taxes - It is the policy of the Fund to meet the  requirements  for
qualification  as a "regulated  investment  company"  under  Subchapter M of the
Internal Revenue Code of 1986, as amended.  The Fund is not subject to income or
excise taxes to the extent that it  distributes  all of its  investment  company
taxable income and net realized gains for its fiscal year.

     Accounting   Estimates  -  The  preparation  of  financial   statements  in
accordance with accounting principles generally accepted in the United States of
America  requires  management to make estimates and assumptions  that affect the
reported  amounts  of  assets  and  liabilities  at the  date  of the  financial
statement. Actual results could differ from those estimates.


                                       30
<PAGE>

     Organizational/Offering  Costs - Costs relating to the  organization of the
Fund were borne by meVC Advisers,  Inc.  Certain  initial public  offering costs
were charged to paid-in capital upon the sale of the shares.

3. Management

     The Fund has entered into a management  agreement with meVC Advisers,  Inc.
(the "Adviser"), a Delaware corporation. Pursuant to such agreement, the Adviser
performs  certain  services  including  certain  management  and  administrative
services  necessary  for the  operation  of the Fund.  The  Adviser  receives  a
management fee equal to 2.5% of the average weekly net assets of the Fund,  paid
monthly  in  arrears.  A  portion  of this  fee is also  used to pay the  Fund's
Sub-Adviser. The Adviser also receives compensation equal to 20.0% of the Fund's
annual  realized  capital gains net of realized and  unrealized  capital  losses
("carried  interest").  The Adviser is a wholly owned  subsidiary of a privately
owned corporation.

     The Adviser has entered into a  sub-advisory  agreement  with Draper Fisher
Jurvetson MeVC Management Co., LLC (the  "Sub-Adviser").  For the  Sub-Adviser's
services, the Adviser pays the Sub-Adviser an annual investment sub-advisory fee
equal to 1.0% of the Fund's average weekly net assets,  paid monthly in arrears.
The  Adviser  shall  also pay the  Sub-Adviser  an amount  equal to 90.0% of any
carried interest paid by the Fund to the Adviser.  The sub-advisory fees are not
an additional expense to the Fund.

     The Adviser has entered into a sub-advisory agreement with Fleet Investment
Advisors,  Inc. (the "Short-Term  Money Manager").  The Short-Term Money Manager
provides  all  short-term   management  of  the  Fund's   uninvested  cash.  The
sub-advisory fees are not an additional expense to the Fund.

     meVC Advisers has agreed to pay  compensation to the directors and officers
for any and  all  services  rendered  to the  Fund.  As  compensation  for  such
services, each director who is not an officer of the Fund receives an annual fee
of $4,800  paid  monthly in arrears,  a fee of $10,000  for each  meeting of the
Board of Directors, or a committee of the Board of Directors, in which each such
independent director  participates,  whether attended in person or by telephone,
and reimbursement of all  out-of-pocket  expenses relating to attendance at such
meetings.

     meVC Advisers has agreed to pay all Fund expenses above and beyond the 2.5%
Management Fee paid to meVC Advisers by the Fund.

4. Dividends and Distributions to Shareholders

     On December 5, 2000, the Fund announced an ordinary income cash dividend of
$0.34210 per share, payable on January 3, 2001, to stockholders of record at the
close of business on December 8, 2000. The Fund went  ex-dividend on December 6,
2000. Distributions can be made payable by the Fund in the form of either a cash
distribution or a stock dividend.  On the Fund's  ex-dividend date, the Fund was
trading on the New York Stock  Exchange  (the "NYSE") at a discount to net asset
value.  In  accordance  with  the  Dividend   Reinvestment  Plan,  the  Dividend
Distribution  Agent  purchased  shares on the open  market of the NYSE for those
shareholders  electing  to  take  their  distributions  in  the  form  of  stock
dividends.

     Income  dividends and capital gain  distributions,  if any, are recorded on
the ex-dividend  date.  Dividends and capital gain  distributions  are generally
declared and paid annually.  An additional  distribution may be paid by the Fund
to avoid  imposition of federal  income tax on any remaining  undistributed  net
investment  income and capital gains.  Distributions  can be made payable by the
Fund either in the form of a cash  distribution or a stock dividend.  The amount
and  character  of income and  capital  gain  distributions  are  determined  in
accordance  with  income  tax  regulations  which  may  differ  from  accounting
principles generally accepted in the United States of America. These differences
are due  primarily  to  differing  treatments  of  income  and  gain on  various
investment  securities  held  by the  Fund,  timing  differences  and  differing
characterizations  of  distributions  made by the Fund.  Permanent  book and tax
basis  differences   relating  to  shareholder   distributions  will  result  in
reclassifications  and may affect the allocation  between net investment income,
net realized gain (loss) and paid in capital.


                                       31
<PAGE>

5. Transactions With Related Parties

     The Fund has been granted  exemptive relief from certain  provisions of the
Investment  Company  Act of  1940,  as  amended,  to  permit  the  Fund  to make
co-investments  with certain  affiliates  of Draper Fisher  Jurvetson.  The Fund
anticipates  that it may,  subject to certain terms and  conditions,  frequently
invest in the same Portfolio  Companies as current and future  affiliates of the
Adviser.

     The Fund has accrued  $578,227  and  $668,139 at October 31, 2001 and 2000,
respectively,  payable to the Adviser, of which $231,291 and $267,255, or 1% are
payable to the  Sub-Adviser.  For the year ended October 31, 2001 and the period
ended  October 31,  2000,  respectively,  the  Adviser  has paid  Draper  Fisher
Jurvetson  MeVC  Management  Co.,  LLC  (the  "Sub-Adviser")  sub-advisory  fees
amounting to $2,723,933 and $1,578,859, or 1% of the 2.5% management fee.

6. Concentration of Market Risk

     Financial  instruments  that subject the Fund to  concentrations  of market
risk consist  principally of preferred  stocks,  which  represent  approximately
35.73% of the Fund's net assets.  The preferred  stocks, as discussed in Note 2,
consist of investments in companies with no readily  determinable  market values
and as such are valued in accordance  with the Fund's fair value  policies.  The
Fund's  investment  strategy  represents a high degree of business and financial
risk due to the fact that the investments include entities with little operating
history or entities that possess  operations  in new or  developing  industries.
These  investments  are  subject to  restrictions  on resale  because  they were
acquired from the issuer in private placement transactions.

7. Portfolio Investments

     During the year ended  October 31, 2001,  the Fund  invested  approximately
$28,200,000  in six  new  companies  and  made  five  follow-on  investments  in
InfoImage, Inc., IQdestination,  Inc., Pagoo.com, Inc., Personic Software, Inc.,
and Yaga, Inc. of  approximately  $8,132,000.  During the year ended October 31,
2001,  there were no changes  made or additions  to the initial  investments  in
Lumeta Corporation and MediaPrise,  Inc. Changes that were made to and additions
that  were made to the  Fund's  individual  equity  and  equity-linked  security
investments,  during the year ended  October 31,  2001,  were  comprised  of the
following:

     Ishoni Networks, Inc.

     On November  6, 2000 the Fund  entered  into  approximately  a  $10,000,000
investment in Ishoni Networks,  Inc. ("Ishoni Networks").  The Fund's investment
then  consisted  of 2,003,607  shares of Series C  Convertible  Preferred  Stock
(Series C Preferred Stock") at $4.991 per share.

     The Series C Preferred Stock ranks pari passu,  with respect to liquidation
preference,  to any series of  Preferred  Stock issued prior to the Series C and
senior to the Common Stock. In the event of a Qualified  Initial Public Offering
("Qualified  IPO"),  the Series C Preferred Stock, as converted to common stock,
will not be transferred in a public distribution prior to one hundred and eighty
days after the date of the final prospectus used in such Qualified IPO.

     On July 25, 2001, the Valuation  Committee of the Board of Directors marked
down the  valuation of the Fund's  approximately  $10,000,000  investment in the
Series C Preferred Stock issue of Ishoni Networks by 25%. The Fund's  investment
now consists of 2,003,607  shares of Series C Preferred  Stock at a valuation of
$3.7433 per share.

     Personic Software, Inc.

     On November 28,  2000,  the Fund  entered  into a follow-on  investment  of
approximately  $760,000  of Series G1  Convertible  Preferred  Stock of Personic
Software,  Inc.  ("Personic")  The Fund's  investment  then  consisted of 38,958
shares of Series G1 Convertible Preferred Stock ("Series G1 Preferred Stock") at
$19.52 per share.  The Fund also received  973,950  warrants to purchase 973,950
shares of Common Stock. The warrants expire on October 31, 2005.


                                       32
<PAGE>

     In conjunction with the Fund's investment in Series G1 Preferred Stock, the
outstanding capital stock of Personic, including the Fund's investment in Series
G  Convertible  Preferred  Stock  ("Series  G  Preferred  Stock")  and  Series G
Warrants, was automatically  converted into 0.125 shares of capital stock of the
same  class  or  series,   with   fractional   shares  being   rounded  up  (the
"Recapitalization").  Subsequent to the Recapitalization,  the 310,174 shares of
Series G Preferred  Stock and the  125,000  Series G  Warrants,  in total,  were
exchanged for 512,296 shares of Series F Convertible  Preferred Stock ("Series F
Preferred Stock").  Due to (i) the Valuation Committee of the Board of Directors
50% mark down, on October 27, 2000,  of the valuation of the Fund's  $10,000,000
investment in the Series G Preferred Stock issue, (ii) the Recapitalization, and
(iii) the  Exchange,  the Fund's  investment  in Series F  Preferred  Stock then
consisted of 512,296 shares at a valuation of $9.76 per share.

     The Series F Preferred  Stock ranks equally  ("pari passu") to the Series A
Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock, the
Series D  Preferred  Stock and the  Series E  Preferred  Stock,  prior to and in
preference to the Common Stock,  and junior to the Series AA Preferred Stock and
the Series G1 Preferred  Stock with respect to  Liquidation  Preference.  In the
event of a Qualified  Initial Public Offering  ("Qualified  IPO"),  the Series F
Preferred  Stock,  as converted to Common Stock,  will not be  transferred  in a
public  distribution  prior to one hundred and eighty days after the date of the
final prospectus used in such Qualified IPO.

     The Series G1 Preferred Stock ranks senior to the Series A Preferred Stock,
the  Series B  Preferred  Stock,  the  Series C  Preferred  Stock,  the Series D
Preferred  Stock,  the Series E Preferred Stock and Series F Preferred Stock and
the Common  Stock,  and junior to the Series AA Preferred  Stock with respect to
liquidation  preference.  In the event of a Qualified  Initial  Public  Offering
("Qualified  IPO"), the Series G1 Preferred Stock, as converted to Common Stock,
will not be transferred in a public distribution prior to one hundred and eighty
days after the date of the final prospectus used in such Qualified IPO.

     On June 13, 2001, the Valuation  Committee of the Board of Directors marked
down the  valuation of the Fund's  approximately  $10,000,000  investment in the
Series F Preferred  Stock issue of Personic by the remaining 50% and marked down
the valuation of the Fund's  approximately  $760,000 investment in the Series G1
Preferred Stock issue of Personic by 100%. The Fund's investment now consists of
512,296  shares of Series F Preferred  Stock at a valuation  of $0.00 per share,
38,958  shares of Series G1  Preferred  Stock at a valuation of $0.00 per share,
and 973,950 warrants at a valuation of $0.00 per share.

     Yaga, Inc.

     On November 30, 2000 the Fund entered into a $200,000  investment  in Yaga,
Inc. ("Yaga").  The Fund's investment then consisted of 200,000 shares of Series
A Convertible Preferred Stock ("Series A Preferred Stock") at $1.00 per share.

     The Series A Preferred  Stock ranks  senior,  with  respect to  liquidation
preference, to the Common Stock and any series of Junior Preferred Stock. In the
event of a Qualified  Initial Public Offering  ("Qualified  IPO"),  the Series A
Preferred  Stock,  as converted to common stock,  will not be  transferred  in a
public  distribution  prior to one hundred and eighty days after the date of the
final prospectus used in such Qualified IPO.

     On June 8, 2001 the Fund entered into a $2,000,000  investment in Yaga. The
Fund's  investment  consisted  of  1,000,000  shares  of  Series  B  Convertible
Preferred Stock ("Series B Preferred  Stock") at $2.00 per share.  The Fund also
received  100,000  warrants  to  purchase  100,000  shares of Series B Preferred
Stock. The warrants expire on June 8, 2004.

     The Series B Preferred Stock ranks pari passu,  with respect to liquidation
preference,  to the Series A Preferred  Stock and senior to the Common Stock and
any series of Junior Preferred Stock. In the event of a Qualified Initial Public
Offering ("Qualified IPO"), the Series B Preferred Stock, as converted to common
stock, will not be transferred in a public distribution prior to one hundred and
eighty days after the date of the final prospectus used in such Qualified IPO.

     Due to the  investment  in Series B Preferred  Stock at a higher  price per
share than the Series A  Preferred  Stock,  the value of the Series A  Preferred
Stock was  subsequently  marked up in accordance with the valuation  policies as
set forth in the Fund's Registration Statement.


                                       33
<PAGE>

     On July 31, 2001,  the Fund entered into a $100,000  investment of Series A
Preferred Stock of Yaga. The Fund's  investment then consisted of 300,000 shares
of Series A Convertible  Preferred  Stock ("Series A Preferred  Stock") at $2.00
per share.

   SafeStone Technologies PLC

     On December  22,  2000,  the Fund  entered  into  approximately  $3,500,000
investment  in  SafeStone  Technologies  PLC  ("SafeStone"),  a  UK-incorporated
company.   The  Fund's  investment  consists  of  650,401  shares  of  Series  A
Convertible Preferred Stock ("Series A Preferred Stock") at $5.38 per share. The
Fund's  investment  also consists of a warrant for the right to subscribe at par
for Series A preference  shares of (pound)0.01 each in accordance with the terms
of the Warrant Agreement.

     The Series A Preferred  Stock ranks  senior,  with  respect to  liquidation
preference, to the Common Stock and any series of Junior Preferred Stock. In the
event of a Qualified  Initial Public Offering  ("Qualified  IPO"),  the Series A
Preferred  Stock,  as converted to common stock,  will not be  transferred  in a
public  distribution  prior to one hundred and eighty days after the date of the
final prospectus used in such Qualified IPO.

     On October 26,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the valuation of the Fund's approximately  $3,500,000  investment in
the Series A Preferred  Stock issue of SafeStone  by 25%. The Fund's  investment
now  consists of 650,401  shares of Series A Preferred  Stock at a valuation  of
$4.0350 per share.

     InfoImage, Inc.

     On January 29,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the  valuation of the Fund's  $2,004,480  investment in the Series C
Convertible  Preferred  Stock  ("Series C Preferred  Stock") issue of InfoImage,
Inc.  ("InfoImage")  by 50%. The Fund's  Series C investment  then  consisted of
432,000 shares of Series C Preferred Stock at a valuation of $2.32 per share and
259,200 warrants at a valuation of $0.00 per share.

     On June 8, 2001, the Fund entered into a $345,533  investment in InfoImage.
The Fund's  investment  consisted of a Convertible  Promissory  Note with a face
value of $345,533.  In connection  with the  financing,  InfoImage had agreed to
issue  warrants  to  purchase  either  (i) a series of  preferred  stock or (ii)
additional  shares of common  stock,  $0.001 par value per share,  in connection
with future equity financings.

     On October 19, 2001,  the Fund's  432,000  shares in the Series C Preferred
Stock was converted into 933,120 shares of Common Stock, along with the entirety
of  InfoImage's  Series A  Convertible  Preferred  Stock,  Series B  Convertible
Preferred  Stock,  and all other  Series C  Convertible  Preferred  Stock.  This
conversion  was  done  in  conjunction  with  the  Fund's  $345,533  Convertible
Promissory Note being converted into 11,740,340  shares of Series AA Convertible
Preferred  Stock ("Series AA Preferred  Stock").  The Series AA Preferred  Stock
ranks senior,  with respect to liquidation  preference,  to the Common Stock and
any series of Junior Preferred Stock. In the event of a Qualified Initial Public
Offering  ("Qualified  IPO"),  the Series AA  Preferred  Stock,  as converted to
common stock,  will not be  transferred  in a public  distribution  prior to one
hundred  and  eighty  days after the date of the final  prospectus  used in such
Qualified IPO. The warrants  originally  issued with the Convertible  Promissory
note were  restated  as only being  eligible  to convert  into  shares of Common
Stock.

     On October 23,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the valuation of the Fund's approximately  $2,004,000  investment in
the Common Stock issue of InfoImage by the remaining 50%. The Fund's  investment
now consists of 11,740,340 shares of Series AA Preferred Stock at a valuation of
$0.03 per share,  933,120  shares of Common  Stock at a  valuation  of $0.00 per
share,  259,200 warrants at a valuation of $0.00,  and 92,663,933  warrants at a
valuation  of $0.00.  The  warrants  expire  on June 2, 2010 and June 14,  2006,
respectively.


                                       34
<PAGE>

     Pagoo, Inc.

     On February 26,  2001,  the Fund  entered  into a follow-on  investment  of
approximately  $4,000,000 of Series D Convertible  Preferred Stock of Pagoo, Inc
("Pagoo").  The  Fund's  investment  consists  of  2,098,636  shares of Series D
Convertible Preferred Stock ("Series D Preferred Stock") at $1.906 per share.

     The Series D Preferred Stock ranks equally ("pari passu"),  with respect to
liquidation preference,  to the Series A Preferred Stock, the Series B Preferred
Stock,  and the Series C Preferred  Stock and senior to the Common Stock and any
series of Junior  Preferred  Stock.  In the event of a Qualified  Initial Public
Offering ("Qualified IPO"), the Series D Preferred Stock, as converted to common
stock, will not be transferred in a public distribution prior to one hundred and
eighty days after the date of the final prospectus used in such Qualified IPO.

     Due to the  investment  in Series D  Preferred  Stock at a lower  price per
share  than the  Series C  Convertible  Preferred  Stock  ("Series  C  Preferred
Stock"), the value of the Series C Preferred Stock was subsequently marked down.
The markdown  considers  the  anti-dilutive  covenants of the Series C Preferred
Stock as contained in Pagoo's Articles of Incorporation.

     AuctionWatch.com, Inc.

     On April 20, 2001, the Valuation Committee of the Board of Directors marked
down  the  valuation  of  the  Fund's  $5,500,000  investment  in the  Series  C
Convertible   Preferred   Stock   ("Series   C   Preferred   Stock")   issue  of
AuctionWatch.com,  Inc.  ("AuctionWatch")  by 25%.  The Fund's  investment  then
consisted  of  1,047,619  shares of Series C Preferred  Stock at a valuation  of
$3.94 per share.

     On July 25, 2001, the Valuation  Committee of the Board of Directors marked
down the valuation of the Fund's $5,500,000 investment in the Series C Preferred
Stock issue of  AuctionWatch.com,  Inc.  ("AuctionWatch")  by another  25%.  The
Fund's investment then consisted of 1,047,619 shares of Series C Preferred Stock
at a valuation of $2.625 per share.

     On October 23,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the  valuation of the Fund's  $5,500,000  investment in the Series C
Preferred Stock issue of AuctionWatch.com, Inc. ("AuctionWatch") by another 25%.
The Fund's  investment  now consists of  1,047,619  shares of Series C Preferred
Stock at a valuation of $2.2148 per share.

     Cidera, Inc.

     On April 20, 2001, the Valuation Committee of the Board of Directors marked
down  the  valuation  of  the  Fund's  $7,500,001  investment  in the  Series  D
Convertible  Preferred Stock ("Series D Preferred Stock") issue of Cidera,  Inc.
("Cidera")  by 50%.  The Fund's  investment  now  consists of 857,192  shares of
Series D Preferred Stock at a valuation of $4.3748 per share.

     EXP Systems, Inc. (Formerly EXP.com, Inc.)

     On April 20, 2001, the Valuation Committee of the Board of Directors marked
down  the  valuation  of the  Fund's  $10,000,001  investment  in the  Series  C
Convertible  Preferred Stock ("Series C Preferred  Stock") issue of EXP Systems,
Inc. ("EXP") by 25%. The Fund's  investment then consists of 1,748,252 shares of
Series C Preferred Stock at a valuation of $4.29 per share.

     On October 23,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the valuation of the Fund's  $10,000,001  investment in the Series C
Preferred Stock issue of EXP Systems, Inc. ("EXP") by 50%. The Fund's investment
now consists of 1,748,252  shares of Series C Preferred  Stock at a valuation of
$2.1450 per share.

     EXP.com, Inc. has changed its name to EXP Systems, Inc.


                                       35
<PAGE>

     Sonexis, Inc. (Formerly eYak, Inc.)

     On May 8, 2001 and as a result of its  acquisition of Brooktrout  Software,
eYak, Inc. said that the combined company has changed its name to Sonexis, Inc.

     Actelis Networks, Inc.

     On May  21,  2001,  the  Fund  entered  into  an  approximately  $5,000,000
investment in Actelis Networks, Inc. ("Actelis"). The Fund's investment consists
of 1,506,025 shares of Series C Convertible Preferred Stock ("Series C Preferred
Stock") at $3.32 per share.

     The Series C Preferred  Stock ranks  senior,  with  respect to  liquidation
preference,  to any series of  Preferred  Stock issued prior to the Series C and
senior to the Common Stock. In the event of a Qualified  Initial Public Offering
("Qualified  IPO"),  the Series C Preferred Stock, as converted to common stock,
will not be transferred in a public distribution prior to one hundred and eighty
days after the date of the final prospectus used in such Qualified IPO.

     DataPlay, Inc

     On June 4, 2001, the Fund entered into a $7,500,000 investment in DataPlay,
Inc. ("DataPlay").  The Fund's investment consists of 2,500,000 shares of Series
D Convertible Preferred Stock ("Series D Preferred Stock") at $3.00 per share.

     The Series D Preferred Stock ranks pari passu,  with respect to liquidation
preference, to the Series B Preferred Stock and the Series C Preferred Stock and
senior  the  Series A  Preferred  Stock  and  Common  Stock.  In the  event of a
Qualified  Initial Public  Offering  ("Qualified  IPO"),  the Series D Preferred
Stock,  as  converted  to  common  stock,  will not be  transferred  in a public
distribution  prior to one  hundred  and eighty days after the date of the final
prospectus used in such Qualified IPO.

     BlueStar Solutions, Inc. (Formerly eOnline, Inc.)

     On June 13, 2001,  eOnline,  Inc., changed its name to BlueStar  Solutions,
Inc.

     On October 23,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the valuation of the Fund's approximately  $10,000,000 investment in
the Series C Convertible  Preferred Stock ("Series C Preferred  Stock") issue of
BlueStar Solutions, Inc. ("BlueStar") by 75%. The Fund's investment now consists
of  1,360,544  shares of Series C Preferred  Stock at a valuation of $1.8375 per
share and  136,054  warrants  at a valuation  of $0.00 per share.  The  warrants
expire at the earlier of (i) May 26, 2003 or (ii) BlueStar's  Qualified  Initial
Public Offering ("Qualified IPO").

     ProcessClaims

     On June  13,  2001,  the  Fund  entered  into a  $2,000,000  investment  in
ProcessClaims  ("ProcessClaims").  The Fund's  investment  consists of 6,250,000
shares of Series C Convertible  Preferred Stock ("Series C Preferred  Stock") at
$0.32 per share.

     The Series C Preferred  Stock ranks  senior,  with  respect to  liquidation
preference, to the Series A Preferred Stock and the Series B Preferred Stock and
senior the Common Stock.  In the event of a Qualified  Initial  Public  Offering
("Qualified  IPO"),  the Series C Preferred Stock, as converted to common stock,
will not be transferred in a public distribution prior to one hundred and eighty
days after the date of the final prospectus used in such Qualified IPO.

     IQdestination

     On June 27, 2001, the Fund entered into a follow-on  investment of $920,000
of Series C Convertible Preferred Stock in IQdestination ("IQdestination").  The
Fund's investment consists of 1,295,775 shares of Series C Convertible Preferred
Stock ("Series C Preferred Stock") at $0.71 per share.


                                       36
<PAGE>

     The Series C Preferred Stock ranks pari passu,  with respect to liquidation
preference,  to the Series B Preferred Stock and senior the Common Stock and any
Junior  Preferred  Stock.  In the event of a Qualified  Initial Public  Offering
("Qualified  IPO"),  the Series C Preferred Stock, as converted to common stock,
will not be transferred in a public distribution prior to one hundred and eighty
days after the date of the final prospectus used in such Qualified IPO.

     Due to the  investment  in Series C  Preferred  Stock at a lower  price per
share  than the  Series B  Convertible  Preferred  Stock  ("Series  B  Preferred
Stock"),  the value of the Series B Preferred Stock was subsequently marked down
in  accordance  with  the  valuation   policies  as  set  forth  in  the  Fund's
Registration Statement.

     Annuncio Software, Inc.

     On July 25, 2001, the Valuation  Committee of the Board of Directors marked
down  the  valuation  of  the  Fund's  $5,000,000  investment  in the  Series  E
Convertible  Preferred  Stock  ("Series E  Preferred  Stock")  issue of Annuncio
Software,  Inc.  ("Annuncio")  by 25%.  The Fund's  investment  now  consists of
625,000 shares of Series E Preferred Stock at a valuation of $6.00 per share.

     FOLIOfn, Inc.

     On July 25, 2001, the Valuation  Committee of the Board of Directors marked
down  the  valuation  of the  Fund's  $15,000,000  investment  in the  Series  C
Convertible  Preferred Stock ("Series C Preferred Stock") issue of FOLIOfn, Inc.
("FOLIOfn") by 25%. The Fund's  investment then consisted of 5,802,259 shares of
Series C Preferred Stock at a valuation of $1.9389 per share.

     On October 26,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the valuation of the Fund's  $15,000,000  investment in the Series C
Preferred  Stock  issue of FOLIOfn by another  25%.  The Fund's  investment  now
consists  of  5,802,259  shares of Series C Preferred  Stock at a  valuation  of
$1.2926 per share.

     ShopEaze Systems, Inc. (Formerly ShopEaze.com, Inc.)

     On July 25, 2001, the Valuation  Committee of the Board of Directors marked
down  the  valuation  of  the  Fund's  $6,000,000  investment  in the  Series  B
Convertible  Preferred  Stock  ("Series B  Preferred  Stock")  issue of ShopEaze
Systems,  Inc.  ("ShopEaze")  by 25%. The Fund's  investment  then  consisted of
2,097,902 shares of Series B Preferred Stock at a valuation of $2.15 per share.

     On October 23,  2001,  the  Valuation  Committee  of the Board of Directors
marked down the  valuation of the Fund's  $6,000,000  investment in the Series B
Preferred Stock issue of ShopEaze by 50%. The Fund's  investment now consists of
2,097,902  shares of Series B  Preferred  Stock at a  valuation  of $1.0725  per
share.

     ShopEaze.com, Inc. has changed its name to ShopEaze Systems, Inc.

     infoUSA.com, Inc.

     On September 28, 2001,  the  Valuation  Committee of the Board of Directors
marked down the valuation of the Fund's approximately  $10,000,000 investment in
the Series B Convertible  Preferred Stock ("Series B Preferred  Stock") issue of
infoUSA.com,  Inc.  ("infoUSA.com") by 32.5%. The Fund's investment now consists
of  2,145,922  shares of Series B Preferred  Stock at a valuation of $3.1455 per
share.

     Endymion Systems, Inc.

     On October 26, 2001, the Valuation Committee of the Board of Directors
marked down the valuation of the Fund's approximately $7,000,000 investment in
the Series A Preferred Stock ("Series A Preferred Stock") issue of Endymion
Systems, Inc. ("Endymion") by 25%. The Fund's investment now consists of
7,156,760 shares of Series A Preferred Stock at a valuation of $0.7336 per
share.


                                       37
<PAGE>

8. Subsequent Events

     On November 29, 2001, the Fund entered into an investment of  approximately
$4,000,000 of Series E Preferred Stock of 0-In Design Automation, Inc.

     On December 4, 2001 the Fund  declared an ordinary  income cash dividend of
$0.044163 per share,  payable on January 3, 2002, to  stockholders  of record at
the close of  business  on  December  10,  2001.  The Fund went  ex-dividend  on
December 6, 2001.


                                       38
<PAGE>

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Board of Directors and Shareholders of
meVC Draper Fisher Jurvetson Fund I, Inc.

In our  opinion,  the  accompanying  balance  sheet,  including  the schedule of
investments,  and the  related  statements  of  operations,  cash  flows  and of
shareholders'  equity and the selected per share data and ratios present fairly,
in all material respects, the financial position of meVC Draper Fisher Jurvetson
Fund I, Inc.  (the "Fund") at October 31, 2001,  the results of its  operations,
cash flows,  shareholders' equity and selected per share data and ratios for the
periods indicated,  in conformity with accounting  principles generally accepted
in the United States of America.  These  financial  statements  and selected per
share data and ratios (hereafter referred to as "financial  statements") are the
responsibility  of the Fund's  management;  our  responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial  statements in accordance with auditing  standards  generally
accepted in the United States of America, which 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,
assessing the  accounting  principles  used and  significant  estimates  made by
management,  and evaluating the overall  financial  statement  presentation.  We
believe that our audit, which included confirmation of securities at October 31,
2001 by correspondence  with the custodian,  provides a reasonable basis for our
opinion.


PricewaterhouseCoopers LLP
December 7, 2001


                                       39
<PAGE>

Item  9.  Changes  In and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosures

     None

                                    Part III


Item 10. Directors and Executive Officers of the Registrant

<TABLE>
<CAPTION>
Name and Occupation                                                                 Age              Since
-------------------                                                               ------            -------
<S>                                                                                 <C>              <C>
John M. Grillos  *..........................................................        59               2000
Chairman of the Board, Chief Executive Officer of the Fund

Peter S. Freudenthal  *  (2)................................................        38               2000
Vice-Chairman, President, Director of the Fund

Larry J. Gerhard  (1)  (3)..................................................        60               2000
Director of the Fund

Harold E. Hughes, Jr  (1)  (3)..............................................        55               2000
Director of the Fund

Chauncey F. Lufkin  (1)  (2)  (3)...........................................        44               2000
Director of the Fund

Paul D. Wozniak  *  (2).....................................................        37               2000
Vice-President, Chief Financial Officer, Treasurer, Secretary of the Fund
</TABLE>


*    "Interested Person" as defined in the Investment Company Act.

(1)  Member of Audit Committee.
(2)  Member of Valuation Committee.
(3)  Member of the Committee of the Independent Directors

John M. Grillos is Chairman, Chief Executive Officer and a director of the Fund.
Mr. Grillos is also the Managing Member of Draper  Advisers.  He is also founder
and Managing General Partner of ITech Partners,  L.P., a seed stage  information
technology  fund. Mr. Grillos has over thirteen years  experience in information
technology  venture capital  investing and twenty-one years of  entrepreneurial,
professional and managerial experience in information technology. Most recently,
Mr. Grillos served as the Executive Vice President,  Chief Operating Officer and
is a director of  SmartForce  PLC (formerly  CBT Group PLC),  or  SmartForce,  a
leading  supplier of e-learning  products with revenues  exceeding $200 million.
From 1997 to 1998, Mr. Grillos served as Managing  Director at SoundView Venture
Partners,  L.P.,  where he was  responsible  for  managing  the venture  capital
business    activities   of   SoundView    Financial   Group,   an   information
technology-focused  investment bank recently acquired by Wit Capital.  From 1988
to  1997,  Mr.  Grillos  was  Managing  Director   responsible  for  information
technology  venture  capital  investing  for  Robertson,  Stephens  & Co., a San
Francisco-based  investment  bank  focused on high  technology  and high  growth
industries.  From  1985 to 1987,  Mr.  Grillos  served  as  President  and Chief
Operating  Officer of SPSS,  Inc., a leading  supplier of statistical  analysis,
graphics and


                                       40
<PAGE>

decision  support  software.  From 1983 to 1985, Mr. Grillos served as President
and Chief Executive Officer of Tesseract Corporation,  a venture-backed supplier
of payroll and human  resource  software.  From 1972 to 1983,  Mr.  Grillos held
various management  positions with American  Management  Systems, an information
technology  consulting and custom application  development company. For the last
five of his 11 years with AMS, Mr.  Grillos was Vice President and Business Unit
Manager  responsible  for the operations of AMS on the West Coast.  From 1968 to
1972, Mr. Grillos worked as a Development Manager and Principal Designer for the
Institute for Computer Research, University of Chicago, where he was responsible
for developing  computerized  control and data  acquisition  systems for several
departments of the University.  From 1965 to 1968, Mr. Grillos worked as a Staff
Engineer for Bell Labs and Western  Electric  Company.  Mr. Grillos received his
M.B.A.  from the  University  of  Chicago  in 1971 and his  B.S.  in  Electrical
Engineering  and Computer  Science from the Illinois  Institute of Technology in
1969.

Peter S. Freudenthal is  Vice-Chairman,  President,  and a director of the Fund.
Mr.  Freudenthal is also co-founder,  President,  Chief Executive  Officer,  and
Chairman of the Board of meVC.com,  Inc. and President and Chairman of the Board
of meVC Advisers,  Inc.  Previously,  Mr. Freudenthal was a Senior Biotechnology
Equity Research Analyst and a Vice President with Robertson  Stephens & Company.
Before joining Robertson  Stephens,  Mr.  Freudenthal also served as Director of
Healthcare  Research at Brean Murray & Company, a privately held investment bank
in New York.  Mr.  Freudenthal  attended  the Yale School of  Medicine  where he
focused  on  Neurosurgery  and Trauma  Surgery.  Prior to  medical  school,  Mr.
Freudenthal  was  Senior  Graduate  Fellow in the  Laboratory  of  Immunology  &
Cellular  Physiology  at The  Rockefeller  University  in New York, as well as a
National Science Foundation Fellow and a David C. Scott Foundation Fellow.  From
1981 to 1985, Mr. Freudenthal was a Thomas J. Watson Scholar at the IBM Research
Center in Yorktown,  New York. Mr.  Freudenthal  received his B.S. with a double
major in Molecular  Biophysics &  Biochemistry  and Molecular  Biology from Yale
College.

Larry J.  Gerhard is a director  of the Fund.  Mr.  Gerhard has over 39 years of
experience  in the  computer  and  electronics  industries  and has held  senior
management  positions for the past 26 years. He is currently President and Chief
Executive  Officer at eVineyard.  Prior to eVineyard,  he was  President,  Chief
Executive  Officer and director of Summit  Design,  Inc.  since January 1993 and
Chairman  of the Board  since May 1996.  Mr.  Gerhard  was  President  and Chief
Executive Officer of Enterprise Communications and Computing, Inc. from November
1991 to November  1992.  Before that, he was the  President and Chief  Executive
Officer of Ventura  Software,  Inc.  from 1989 to November  1991.  Prior to that
time,  Mr. Gerhard was President and Chief  Executive  Officer of Decision Data,
Inc. He began his career at North American  Aviation as a programmer  working on
the original  Apollo Missile  program.  After 4 years at NAA he joined  Raytheon
Data  and  his  last  position  with  Raytheon  was  Senior  Vice  President  of
Engineering  and  Operations.  Mr.  Gerhard  received  his  B.S.  in  Electrical
Engineering  from West Coast  University  and his M.B.A.  from the University of
Pittsburgh, Executive M.B.A. Program.

Harold E. Hughes,  Jr is a director of the Fund. Mr. Hughes is a 23-year veteran
of Intel during which time he served as Treasurer,  Vice  President  responsible
for Intel's  venture  fund,  Chief  Financial  Officer,  and Vice  President and
Director of Planning and Logistics.  Prior to joining Intel, he served as a U.S.
Army Officer from  1968-1972.  He currently  serves on the board of directors of
London  Pacific Corp.,  Merant PLC and  Hummingbird  Communications.  Mr. Hughes
received his B.A. in Economics  from the  University of Wisconsin and his M.B.A.
from the University of Michigan.

Chauncey  F. Lufkin is a director  of the Fund.  Mr.  Lufkin is also Senior Vice
President of Franklin Advisers, Inc. (a subsidiary of Franklin Resources, listed
on the NYSE),  and Portfolio  Manager of Franklin  Floating Rate Trust, a mutual
fund  focusing  on floating  rate debt  approaching  $2 billion in assets  under
management.  Mr. Lufkin  launched  Franklin  Floating  Rate Trust in 1997.  More
recently,  he has focused on launching  two related  products,  a version of the
bank debt fund (Franklin  Floating Rate Fund PLC) for foreign  investors,  and a
collateralized  loan  obligation  (CLO)  for  institutional  investors.   Before
launching  Franklin  Floating Rate Trust,  Mr.  Lufkin was portfolio  manager of
Franklin Principal Maturity Trust, a debt strategies fund that traded on the


                                       41
<PAGE>

New  York  Stock  Exchange.  Earlier  in  his  career,  Mr.  Lufkin  worked  for
Manufactures  Hanover Trust Co. (since  acquired by Chase Manhattan Bank) in the
acquisition finance group specializing in structuring leveraged transactions. He
also worked at the merchant  bank arm of Security  Pacific  National Bank (since
acquired by Bank of America).  Mr. Lufkin  received his B.A. in History from St.
Lawrence University.

Paul D. Wozniak is Vice  President,  Chief  Financial  Officer,  Treasurer,  and
Secretary of the Fund. Mr. Wozniak is also Chief Operating Officer for meVC.com,
Inc. and Vice President of Operations  for meVC  Advisers,  Inc. Mr. Wozniak has
fifteen  years   experience  in   international   fund  management   operations.
Previously,  Mr. Wozniak served in various  operational  roles, most recently as
Vice  President  and Director,  Mutual Fund  Operations,  at GT Global  Inc./AIM
Funds. At GT Global,  Mr. Wozniak was responsible for the overall  management of
the mutual  fund  accounting  and pricing  groups for the GT Global  mutual fund
family,  comprising over $10 billion in 37 funds invested worldwide. Mr. Wozniak
also  served as an officer of both GT Global  Inc.  and the GT Global  Family of
Funds.  Mr.  Wozniak  received his B.S. in  Accounting  from the  University  of
Scranton.

There is no family relationship between any director or executive officer of the
Fund.

Item 11. Executive Compensation

The Fund's board does not have a standing nominating or compensation  committee.
meVC Advisers has agreed to pay  compensation  to the directors and officers for
any and all services  rendered to the Fund. As  compensation  for such services,
each director who is not an officer of the Fund receives an annual fee of $4,800
paid  monthly  in  arrears,  a fee of $10,000  for each  meeting of the Board of
Directors,  or a  committee  of the  Board  of  Directors,  in which  each  such
independent director  participates,  whether attended in person or by telephone,
and reimbursement of all  out-of-pocket  expenses relating to attendance at such
meetings.  Directors of the Fund who are "interested  persons" as defined by the
1940 Act receive no compensation from the Fund.

                               Compensation Table

-----------------------------------   -----------------------------------
          Name of                             Total Compensation*
    Person, Position
-----------------------------------   -----------------------------------
Larry J. Gerhard, Director                          $108,784
-----------------------------------   -----------------------------------
Harold E. Hughes, Jr., Director                     $107,600
-----------------------------------   -----------------------------------
Chauncey F. Lufkin, Director                        $107,600
-----------------------------------   -----------------------------------


* Represents fees paid to each director during the fiscal year ended October 31,
2001.

Item 12. Security Ownership of Certain Beneficial Owners and Management

PRINCIPAL STOCKHOLDER

     The Fund does not know of any person who is a beneficial owner of more than
5% of the outstanding shares of the Fund's common stock.

OWNERSHIP OF MANAGEMENT

     The  following  table  sets  forth at  October  31,  2001,  the  number and
percentage of outstanding shares of the Fund's common stock beneficially held by
(i) each  director of the Fund,  and (ii) all officers and directors as a group.
Under  the  rules of the  SEC,  a  person  is  deemed  to own  beneficially  all
securities as to which that person


                                       42
<PAGE>

owns or shares voting or investment  power, as well as all securities which such
person may acquire  within 60 days through the  exercise of currently  available
conversion  rights,  warrants or options.  Except as  otherwise  indicated,  the
stockholders  listed in the table  below have sole voting and  investment  power
with respect to the shares indicated.

<TABLE>
<CAPTION>
                                                              Amount and Nature of Beneficial Ownership
                                                     -----------------------------------------------------------
                                                    Sole Voting and       Other Beneficial                     Percent of
   Title of Class                Name               Investment Power          Ownership           Total          Class
--------------------   ------------------------- -------------------------------------------- -------------   -------------
<S>                                                   <C>                         <C>          <C>                 <C>
Common Stock           John M. Grillos                13,862.08579                0            13,862.08579        *
                       Peter S. Freudenthal                0                      0                 0              0
                       Larry J. Gerhard                    0                      0                 0              0
                       Harold E. Hughes, Jr                0                      0                 0              0
                       Chauncey F. Lufkin                  0                      0                 0              0
                       Paul D. Wozniak                     0                      0                 0              0

                       All Directors and              13,862.08579                0            13,862.08579        *
                       Officers as a group
</TABLE>

* Indicates less than one percent.

Item 13. Certain Relationships and Related Transactions

     The Adviser, pursuant to the terms of the Investment Advisory Agreement, is
responsible for the supervision of portfolio  investments.  Transactions between
the Fund and the Adviser,  including  operational  responsibilities,  duties and
compensation, are governed by the Investment Advisory Agreement.  Throughout the
term of the Investment Advisory  Agreement,  the Fund will pay to the Adviser an
annual  management fee of 2.5% of the Fund's average weekly net assets,  payable
monthly, in arrears. For the year ended October 31, 2001, the Investment Adviser
earned an investment advisory fee in the aggregate amount of $7,388,061.

     The  Sub-Advisor,  pursuant  to the  terms of the  Investment  Sub-Advisory
Agreement,  is  responsible,  on  a  day-to-day  basis  for  the  selection  and
supervision of portfolio investments. The Sub-Adviser provides all co-investment
opportunities for approval by the Fund's Board of Directors. Throughout the term
of  the  Investment  Sub-Advisory  Agreement,   the  Adviser  will  pay  to  the
Sub-Adviser  an annual  management  fee of 1.0% of the Fund's average weekly net
assets,  payable monthly,  in arrears.  For the year ended October 31, 2001, the
Investment Sub-Adviser earned an investment advisory fee in the aggregate amount
of $2,955,224.

     The Adviser has entered into a sub-advisory agreement with Fleet Investment
Advisors,  Inc. (the "Short-Term  Money Manager").  The Short-Term Money Manager
provides  all  short-term   management  of  the  Fund's   uninvested  cash.  The
sub-advisory fees are not an additional expense to the Fund.

     As  stated  above  in  Item  1  (Business---Co-Investments   and  Follow-On
Investments)  and in Item 8  (Note 5 of the  notes  accompanying  the  financial
statements  in  "Transactions  with Related  Parties"),  the Fund  co-invests in
Portfolio  Companies  from  time to time  with  affiliates  of the  Fund and the
Investment   Sub-Adviser,   including   certain   venture   capital   investment
partnerships.  The Fund's co-investments with such affiliates are subject to the
terms and  conditions of the exemptive  order granted by the  Commission,  which
relieves the Fund from certain  provisions of the Act and permits  certain joint
transactions with the investment partnerships.


                                       43
<PAGE>

                                     Part IV


Item 14. Exhibits, Financial Statements Schedules and Reports on Form 8-K
<TABLE>
<CAPTION>

     (a)(1)   Financial Statements                                                                    Page
              --------------------                                                                    ----
<S>                                                                                                    <C>
              Balance Sheets
                         October 31, 2001 and October 31, 2000                                          19

              Statement of Operations
                         For the Year Ended October 31, 2001 and
                         the Period March 31, 2000 to October 31, 2000                                  20

              Statement of Cash Flows
                         For the Year Ended October 31, 2001 and
                         the Period March 31, 2000 to October 31, 2000                                  21

              Statement of Shareholders' Equity
                         For the Period Ended March 31, 2000 to October 31, 2000 and                    22
                         the Year Ended October 31, 2001

              Selected Per Share Data and Ratios
                         For the Year Ended October 31, 2001 and
                         the Period Ended March 31, 2000 to October 31, 2000                            23

              Schedule of Investments
                         October 31, 2001                                                               24

              Notes to Financial Statements                                                             29

              Report of Independent Public Accountants                                                  39
</TABLE>

     All other  information  required in the financial  statement  schedules has
been  incorporated  in the  financial  statements  or notes  thereto or has been
omitted since the information is not  applicable,  not present or not present in
amounts sufficient to require submission of the schedule.

(b)  Reports on Form 8-K

     No  reports  on Form 8-K were  filed by the Fund  during the year for which
this report is filed.


                                       44
<PAGE>

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of  1934,  the  Registrant  has  caused  this  report  to be  signed  by the
undersigned, thereunto duly authorized.

                              MEVC DRAPER FISHER JURVETSON FUND I, INC.

Date: December 18, 2001       /s/  JOHN M GRILLOS
                              --------------------------------------------------
                              John M. Grillos
                              Chairman, Chief Executive Officer, Director


Date: December 18, 2001       /s/  PAUL WOZNIAK
                              --------------------------------------------------
                              Paul Wozniak
                              Vice President, Treasurer, Chief Financial Officer


                                       45
<PAGE>

Pursuant to the requirements of Section 13 or 15(d) 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.

<TABLE>
<CAPTION>
Date                          Signature                      Title
-------                       -------------                  ------
<S>                           <C>                            <C>
December 18, 2001             /s/ John M. Grillos            Chairman, Chief Executive Officer, Director
----------------------------  -------------------------
                              (John M. Grillos)


December 18, 2001             /s/ Peter S. Freudenthal       Vice-Chairman, President, Director
----------------------------  -------------------------
                              (Peter S. Freduenthal)


December 18, 2001             /s/ Larry J. Gerhard           Director
----------------------------  -------------------------
                              (Larry J. Gerhard)


December 18, 2001             /s/ Harold E. Hughes, Jr.      Director
----------------------------  -------------------------
                              (Harold E. Hughes, Jr.)


December 18, 2001             /s/ Chauncey F. Lufkin         Director
----------------------------  -------------------------
                              (Chauncey F. Lufkin)


December 18, 2001             /s/ Paul D. Wozniak            Vice-President, Chief Financial Officer, Treasurer,
                                                             Secretary
----------------------------  -------------------------
                              (Paul D. Wozniak)
</TABLE>

                                       46