|FORM 10-K


SECURITIES
AND
EXCHANGE COMMISSIONWashington D.C. 20549
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|[X] |  | ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE
REQUIRED)
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|For the period ended October 31, 2000


or
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|[_] |  | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (no fee
required)
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|Commission File Number 000-28405


MEVC DRAPER FISHER
JURVETSON FUND I, INC.(Exact name of the registrant as
specified in its charter)
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|DELAWARE(State or other jurisdiction ofincorporation or organization) | 94-3346760(I.R.S. Employer Identification No.)
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|991 Folsom StreetSan Francisco, California(Address of principal executiveoffices) | 94107-1020(Zip Code)
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|Registrants telephone number,
including area code: (877) 474-6382


Securities registered pursuant to
Section 12(b) of the Act:
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|Title of each class Common Stock | Name of each exchange on whichregisteredNew 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: $172,082,144, computed on the
basis of $10.4375 per share, closing price of the common stock on the New York Stock
Exchange on December 14, 2000. 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 14, 2000. The net asset value of a share at October 31, 2000 was $18.88.
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|meVC Draper Fisher Jurvetson Fund I, Inc.
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|
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|Part I                                   
|Item 1                                   
|Item 2                                   
|Item 3                                   
|Item 4                                   
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|Part II                                  
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|Item 5                                   
|Item 6                                   
|Item 7                                   
|Item 7A                                  
|Item 8                                   
|Item 9                                   
|Part III                                 
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|Item 10                                  
|Item 11                                  
|Item 12                                  
|Item 13                                  
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|Part IV                                  
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|Item 14                                  
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|SIGNATURE                                

|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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|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 securities 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:
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| |  |  | The presence or availability of strong management teams;
| | - |  | --------------------------------------------------------

| |  |  | Favorable industry and competitive dynamics;
| | - |  | --------------------------------------------

| |  |  | Markets
characterized by rapid growth and new product adaptation.
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|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 Securities 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 include unsolicited proposals from the
public and from referrals from banks, lawyers, accountants and other members of
the financial community.



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|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


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, 2000, the
Funds investment in Personic, valued at $5,000,000 with a cost of
$10,000,000, consisted of 2,481,390 shares of Series G Convertible Preferred
Stock at $4.03 per share. The Fund also received 1,000,000 warrants to purchase
1,000,000 shares of Series G Preferred Stock. The warrants expire on May 12,
2005.


ShopEaze.com,
Inc.


ShopEaze.com,
Inc. (ShopEaze), Santa Clara, California, provides brick and mortar
retailers with a completely outsourced online shopping solution that allows them
to promote their own established brands and local store presence while
leveraging ShopEazes service capabilities and technology. At October 31,
2000 the Funds investment in ShopEaze, valued at $6,000,000 with a cost of
$6,000,000, consisted of 2,097,902 shares of Series B Convertible Preferred
Stock at $2.86 per share.


eOnline,
Inc.


eOnline,
Inc. (eOnline), Cupertino, California, delivers leading enterprise
business applications in a hosted, managed environment to provide end-to-end
eBusiness solutions. eOnline is SAP and Ariba certified and leads the market for
SAP solutions in the application service provider (ASP) model. At October 31,
2000 the Funds investment in eOnline, valued at approximately $10,000,000
with a cost of approximately $10,000,000, consisted of 1,360,544 shares of
Series C Convertible Preferred Stock at $7.35 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) eOnlines Qualified Initial Public
Offering (Qualified IPO).



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|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, 2000 the
Funds investment in infoUSA.com, valued at approximately
$10,000,000 with a cost of approximately $10,000,000, consisted of 2,145,922
shares of Series B Convertible Preferred Stock at $4.66 per share.


Endymion
Systems, Inc.


Endymion
Systems (Endymion Systems), Oakland, California, is an information
technology consultancy that provides full-service e-commerce solutions to its
clients. From computing environments, networks and back-office applications to
middleware and websites, Endymion Systems assists customers in moving their
business models to the Web. At October 31, 2000 the Funds investment in
Endymion Systems, valued at $7,000,000 with a cost of $7,000,000, consisted of
7,156,760 shares of Series A Convertible Preferred Stock at $.9781 per share.


EXP.com,
Inc.


EXP.com,
Inc. (EXP), Menlo Park, California, provides individuals seeking
advice with access to qualified experts and service providers in over 300 topic
areas within the business, technology, and personal interests categories. Their
site attracts millions of visitors each month, enabling interaction with experts
via email, chat session, and phone. The company also powers expert networks for
corporations and destination Web sites. At October 31, 2000 the Funds
investment in EXP, valued at approximately $10,000,000 with a cost of
approximately $10,000,000, consisted of 1,748,252 shares of Series C Convertible
Preferred Stock at $5.72 per share.


InfoImage,
Inc.


InfoImage,
Inc. (InfoImage), Phoenix, Arizona, helps companies increase their
decision-making efficiency with intranet/extranet solutions using Web and
collaborative technologies. The cornerstone of its product and service offerings
is InfoImage freedom, a decision portal software product allowing access to
structured and unstructured data, advanced personalization, intuitive search,
business intelligence and collaboration tools. At October 31, 2000 the
Funds investment in InfoImage, valued at $2,004,480 with a cost of
$2,004,480, consisted of 432,000 shares of Series C Convertible Preferred Stock
at $4.64 per share. The Fund also received 259,200 warrants to purchase 259,200
shares of Series C Preferred Stock. The warrants expire at the earlier of (i)
June 2, 2010 or (ii) InfoImages Qualified Initial Public Offering
(Qualified IPO).


AuctionWatch.com,
Inc.


AuctionWatch.com,
Inc. (AuctionWatch), San Bruno, California, provides services which
afford businesses with the tools and software necessary to efficiently
distribute merchandise and acquire customers, while providing a convenient
comparison-shopping service for buyers to locate and purchase these products.
AuctionWatchs services fall into three main categories: seller services,
buyer services, and post sale management solutions. At October 31, 2000 the
Funds investment in AuctionWatch, valued at $5,500,000 with a cost of
$5,500,000, consisted of 1,047,619 shares of Series C Convertible Preferred
Stock at $5.25 per share.


Foliofn,
Inc.


Foliofn,
Inc. (Foliofn), Vienna, Virginia, together with its wholly
owned brokerage subsidiary FoliofnInvestments, 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, 2000 the Funds investment in Foliofn, valued at
$15,000,000 with a cost of $15,000,000, consisted of 5,802,259 shares of Series
C Convertible Preferred Stock at $2.59 per share. Mr. Grillos, the Chief
Executive Officer of the Fund, serves as a director of Foliofn.



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|eYak,
Inc.


eYak,
Inc. (eYak), Boston, Massachusetts, is building the first native IP
conferencing and enhanced services platform that combines the power of the
Internet with the quality of the telephone. The company has multiple services
groups, including: (i) Business Services, which expects to become a leading
provider of wholesale, enhanced teleconferencing services and (ii) Internet
Services, which expects to become a leader in online communications. At October
31, 2000 the Funds investment in eYak, valued at $10,000,000 with a cost
of $10,000,000, consisted of 2,590,674 shares of Series C Convertible Preferred
Stock at $3.86 per share.


Annuncio
Software, Inc.


Annuncio
Software, Inc. (Annuncio), Mountain View, California, provides
e-marketing software and services that enable companies to turn prospects into
customers and build the long-term, loyal customer relationships that drive
revenues and profitability. The Annuncio suite of e-marketing applications
allows business users to define, automate and analyze marketing and
e-merchandising campaigns and personalize Web sites and Web stores. At October
31, 2000 the Funds investment in Annuncio, valued at $5,000,000 with a
cost of $5,000,000, consisted of 625,000 shares of Series E Convertible
Preferred Stock at $8.00 per share.


Pagoo.com,
Inc.


Pagoo.com,
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, 2000
the Funds investment in Pagoo, valued at approximately $10,000,000 with a
cost of approximately $10,000,000, consisted of 3,412,969 shares of Series C
Convertible Preferred Stock at $2.93 per share. Nino Marakovic, Principal of
Draper Advisers, serves as a director of Pagoo.


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, 2000 the Funds investment in Cidera, valued at approximately
$7,500,000 with a cost of approximately $7,500,000, consisted of 857,192 shares
of Series D Convertible Preferred Stock at $8.7495 per share.





IQdestination


IQdestination,
Boulder, Colorado, is an Internet training site offering nationwide coverage for
vendor-certified information technology (IT) classroom training, available by
reverse auction on its website. All classroom training is conducted at
vendor-authorized technical training centers and taught by vendor-certified
instructors throughout the United States. At October 31, 2000 the Funds
investment in IQdestination, valued at $2,300,000 with a cost of $2,300,000,
consisted of 1,150,000 shares of Series B Convertible Preferred Stock at $2.00
per share. V. Frank Mendicino III, non-managing member of Draper Advisers,
serves as a director of IQdestination.


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, 2000 the Funds investment in MediaPrise, valued
at $2,000,000 with a cost of $2,000,000, consisted of 2,196,193 shares of Series A
Convertible Preferred Stock at $0.91067 per share. John E. Campion, non-managing member
of Draper Advisers, serves as a director of MediaPrise.



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|Lumeta
Corporation


Lumeta Corporation (Lumeta), Murray
Hills, 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 company intranets.
The company also facilitates network optimization and IT management during integration
processes such as mergers. At October 31, 2000 the Funds investment in Lumeta, valued at
$250,000 with a cost of $250,000, consisted of 384,615 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.


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.


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 for the conduct of 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.



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|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.


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 Co. 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.



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|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 2000 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
securities 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 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 16 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.




8
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|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 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, 2000, 100% of the preferred stocks in portfolio companies held
by the Fund, representing approximately 34.53% of the Funds net asset value, were
invested in securities for which market quotations were not readily available. See
Valuation.



9
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|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
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.



10
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|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. 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.



11
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---

|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


No matters were submitted to a vote of
security holders during the fiscal year 2000.



12
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|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, 2000. The net asset value per share
of the Funds common stock at October 31, 2000, was $18.88.


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, 2000, by quarter.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|QUARTERENDED | HIGH | LOW     
|------------ | ---- | --------
|04/30/00     |      | N/A*    
|07/31/00     |      | $19.25  
|10/31/00     |      | $15.6875

|* |  | Fund
commenced trading on the NYSE on June 26, 2000
|- |  | ---------------------------------------------------

|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.



13
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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


Since
the Funds launch on March 31, 2000, volatility in the public markets has
helped to contribute to a general improvement in the long-term investment
climate for private equity. Prior to the Funds launch, high prices for the
shares of publicly traded technology companies were being reflected in
valuations of private companies. Over the past few months, however, we were able
to take advantage of the decline in private company valuations to invest at
generally reducing prices as compared to earlier in the year.


We
believe that the correction in stock prices for both public and privately held
technology companies is a positive development for the long-term investor. It
has brought a renewed sense of perspective to the investment process and
reversed the trend of bringing companies to market prematurely. Instead, venture
capitalists are returning to the traditional route of offering young companies
their expert guidance over a number of years to help them build strong,
long-term franchises. We believe that companies nurtured in this manner have a
better chance to succeed in the markets for exciting new technologies. In
addition, we believe that these types of companies are likely to continue to be
more insulated from fluctuations in the public markets.


The
Fund will continue to exercise a disciplined investment approach through risk
management and diversification, and to invest primarily in the Internet,
e-commerce, telecommunications, networking software, and information services
industries.


LIQUIDITY AND CAPITAL RESOURCES


At
October 31, 2000, the Fund had $107,554,476 of its net assets (the value of
total assets less total liabilities) of $311,446,739 invested in portfolio
securities of sixteen companies and $203,919,782 of its net assets invested in
temporary cash investments consisting of Certificates of Deposit, Commercial
Paper, Money Market Funds, and US Government and Agency Securities. Current
balance sheet resources are believed to be sufficient to finance any future
commitments.


Net
cash used by operating activities was ($195,889,834) for the period ended
October 31, 2000.


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.



14
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|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 $4,710,538 for the
period ended October 31, 2000.


The
Adviser receives management fee compensation at an annual rate of 2.5% of the
average weekly net assets of the Fund, paid monthly in arrears. Such fees
amounted to $4,615,284 for the period ended October 31, 2000.





REALIZED GAINS AND LOSSES ON SALES OF PORTFOLIO SECURITIES


The
Fund realized a net capital loss of $789 from the sale of securities during the
period ended October 31, 2000.





UNREALIZED APPRECIATION AND DEPRECIATION OF PORTFOLIO
SECURITIES


The
Fund had a net unrealized depreciation of $4,913,010 for the period ended
October 31, 2000. Such depreciation mainly resulted from the Board of
Directors decision to mark down the value of the Funds investment in
Personic Software, Inc.





DIVIDENDS


No
dividends were declared for the period ended October 31, 2000.





PORTFOLIO INVESTMENTS


At
October 31, 2000 the cost of equity and equity-linked security investments made
by the Fund to date was $112,554,476 and their aggregate market value was
estimated to be $107,554,476. Management believes the companies identified have
significant 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 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. However,
any such pending transaction could have an impact on the valuation of an
investment which may be adjusted prior to the transaction being publicly
announced or completed.



15
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|SUBSEQUENT EVENTS




On
November 6, 2000 the Fund entered into an investment of approximately
$10,000,000 of Series C Preferred Stock of Ishoni Networks, Inc.


On
November 28, 2000, the Fund entered into a follow-on investment of approximately
$760,000 of Series G1 Preferred Stock of Personic Software, Inc.


On November 30, 2000 the Fund entered into
an investment of $200,000 of Series A Preferred Stock of Yaga, Inc.


In November 2000, a revised AICPA Audit and
Accounting Guide, Audits of Investment Companies, was issued, and is effective for fiscal
years beginning after December 15, 2000. The revised Guide will require Investment
Companies to amortize premium and discount on all fixed-income securities. The Fund
already follows this policy and currently amortizes both premium and discount on the
accrual basis.


On
December 5, 2000 the Fund announced that it declared 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.


On
December 5, 2000 the Fund filed a preliminary Proxy Statement pursuant to
Regulation 14A under the Securities and Exchange Act of 1934, as amended. The
shareholders will be asked to vote on three proposals that were unanimously
approved at the Funds most recent Board of Directors meeting: (i) To
reappoint John Grillos and Peter Freudenthal to serve on the Funds Board
of Directors for three-year terms, (ii) To ratify the selection of
PricewaterhouseCoopers LLP as the Funds independent accountants, and (iii)
To approve a new investment sub-advisory agreement between meVC Advisers and the
Sub-Adviser.



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.




16
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|Item 8. Financial Statements and Supplementary Data




FINANCIAL STATEMENTS



meVC Draper Fisher Jurvetson Fund I, Inc. Balance Sheet October 31, 2000
|--------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                      | 
|----------------------------------------------------- | 
|ASSETS                                                | 
|Investments in preferred stocks, at fair value        | 
|(cost $112,554,476), (Note 2)                         | 
|Investments in short-term securities, at market value | 
|(cost $88,073,112), (Note 2)                          | 
|Cash and cash equivalents                             | 
|(cost $115,759,680), (Note 2)                         | 
|Interest receivable                                   | 
|                                                     
|Total Assets                                          | 
|                                                     
|LIABILITIES AND SHAREHOLDERS EQUITY                  | 
|Liabilities:                                          | 
|Management fee payable (Notes 3, 5)                   | 
|                                                     
|Shareholders Equity:                                 | 
|Common Stock, $0.01 par value; 150,000,000 shares     | 
|authorized and 16,500,000 outstanding                 | 
|at October 31, 2000                                   | 
|Additional paid in capital                            | 
|Retained deficit                                      | 
|                                                     
|Total Shareholders Equity                            | 
|                                                     
|Total Liabilities and Shareholders Equity            | 
|                                                     
|Net Asset Value Per Share                             | 
|                                                     

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



17
|--------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc.Statement of
OperationsFor the Period March 31, 2000* to October 31, 2000
|------------------------------------------------------------------------------------------------------------------

|                                       | 
|-------------------------------------- | 
|Investment Income:                     | 
|Interest income                        | 
|                                      
|Operating Expenses:                    | 
|Management fees (Notes 3, 5)           | 
|                                      
|Net investment income                  | 
|                                      
|Net Realized and Unrealized Loss on    | 
|Investment Transactions:               | 
|Net realized loss on                   | 
|investment transactions                | 
|Net unrealized depreciation on         | 
|investment transactions                | 
|                                      
|Realized and unrealized gain (loss) on | 
|investment transactions                | 
|                                      
|Net decrease in net assets resulting   | 
|from operations                        | 
|                                      
|Net decrease in net assets resulting   | 
|from operations per share              | 
|                                      
|Dividends declared per Share           | 
|                                      

|* |  | Commencement
of operations.
|- |  | ---------------------------

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



18
|--------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc. Statement of Cash
Flows For the Period March 31, 2000* to October 31, 2000
|--------------------------------------------------------------------------------------------------------------------

|                                                                     |  | 
|-------------------------------------------------------------------- |  | 
|Cash Flows from Operating Activities:                                |  | 
|Net decrease in net assets resulting from operations                 |  | 
|Adjustments to reconcile net cash provided by operations:            |  | 
|Change in Realized loss                                              |  | 
|Change in Unrealized depreciation                                    |  | 
|Changes in assets and liabilities:                                   |  | 
|Management fee payable                                               |  | 
|Interest receivable                                                  |  | 
|Purchases of preferred stock                                         |  | 
|Purchases of short-term investments                                  |  | 
|Purchases of cash equivalents                                        |  | 
|Sales/Maturities of short-term investments                           |  | 
|Sales/Maturities of cash equivalents                                 |  | 
|                                                                    
|Net cash used by operating activities                                |  | 
|                                                                    
|Cash Flows from Financing Activities:                                |  | 
|Gross proceeds from initial public offering                          |  | 
|Sales load                                                           |  | 
|Advisory fee, Prudential Securities Incorporated                     |  | 
|Offering costs (Note 2)                                              |  | 
|Redemption of seed money                                             |  | 
|                                                                    
|Net cash provided for financing activities                           |  | 
|                                                                    
|Net change in cash and cash equivalents for the period               |  | 
|                                                                    
|Cash and cash equivalents, beginning of period                       |  | 
|                                                                    
|Cash and cash equivalents, end of the period                         |  | 
|                                                                    
|                                                                    
|*  Commencement of operations                                        |  | 
|                                                                    
|The Company paid no interest or federal income tax during the period |  | 

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



19
|--------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc. Statement of
Shareholders Equity For the Period March 31, 2000* to October 31, 2000
|------------------------------------------------------------------------------------------------------------------------------

|                                                | CommonStock | AdditionalPaid inCapital | RetainedDeficit | TotalShareholdersEquity
|----------------------------------------------- | ----------- | ------------------------ | --------------- | ------------------------
|Balance at March 31, 2000                       |             |                          | $               | 3                       
|Issuance of 16,500,000 shares through           |             |                         
|Initial public offering (Net of Offering Costs) |             |                          |                 | 165,000                 
|Redemption of seed shares                       |             |                          |                 | (3                      
|Net decrease in net assets from operations      |             |                          |                 |                        
|                                                |            
|Balance at October 31, 2000                     |             |                          | $               | 165,000                 
|                                                |            
|*  Commencement of operations.                 

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





20
|----------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc. Selected per
Share Data and Ratios For the Period March 31, 2000* to October 31, 2000
|-------------------------------------------------------------------------------------------------------------------------------

|                                                | 
|----------------------------------------------- | 
|Net proceeds from initial public offering (a)   | 
|Income (loss) from investment operations:       | 
|Net investment income                           | 
|Net realized and unrealized loss on investments | 
|                                                | 
|Total from investment operations                | 
|                                                | 
|Less distributions from and in excess of:       | 
|Net investment income                           | 
|Net realized and unrealized gain                | 
|                                                | 
|Total distributions                             | 
|                                                | 
|Net asset value, end of period                  | 
|                                                | 
|Market Value, end of period                     | 
|                                                | 
|Total Return - At NAV (b)                       | 
|Total Return - At Market (b, c)                 | 
|Ratios and Supplemental Data:                   | 
|Net assets, end of period (in thousands)        | 
|Ratios to average net assets:                   | 
|Expenses (d) (Note 3)                           | 
|Net investment income                           | 

|Notes to Supplemental Information:
|----------------------------------

|* |  | Commencement
of operations.
|- |  | ---------------------------

|(a) |  | Net
of initial sales load, underwriting and offering costs of $1.11 per share
|--- |  | -----------------------------------------------------------------------------

|(b) |  | Total
investment return does not include sales charge
|--- |  | -----------------------------------------------------

|(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.




21
|---------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc. Schedule of
Investments October 31, 2000
|----------------------------------------------------------------------------------

|Description                                  | Shares/Principal | Date ofInitialInvestment | Cost | Value    
|-------------------------------------------- | ---------------- | ------------------------ | ---- | ---------
|                                            
|Preferred Stocks  34.53% (a, b) (Note 6, 7) |                  |                          |      |          
|Annuncio Software Inc., Series E             |                  | 625,000                  |      | July 2000
|AuctionWatch.com, Inc., Series C             |                  | 1,047,619                |      | June 2000
|Cidera, Inc., Series D                       |                  | 857,192                  |      | Aug 2000 
|*Endymion Systems, Inc., Series A            |                  | 7,156,760                |      | June 2000
|*eOnline, Inc.:                              |                 
|Series C                                     |                  | 1,360,544                |      | May 2000 
|Series C Warrants, expire 5/25/03            |                  | 136,054                  |      | May 2000 
|*EXP.com, Inc., Series C                     |                  | 1,748,252                |      | June 2000
|*eYak, Inc., Series C                        |                  | 2,590,674                |      | June 2000
|*Foliofn, Inc., Series C                     |                  | 5,802,259                |      | June 2000
|InfoImage, Inc.:                             |                 
|Series C                                     |                  | 432,000                  |      | June 2000
|Series C Warrants, expire 6/2/10             |                  | 259,200                  |      | June 2000
|*infoUSA.com, Inc., Series B                 |                  | 2,145,922                |      | June 2000
|*IQdestination, Series B                     |                  | 1,150,000                |      | Sep 2000 
|Lumeta Corporation, Series A                 |                  | 384,615                  |      | Oct 2000 
|* MediaPrise, Inc., Series A                 |                  | 2,196,193                |      | Sep 2000 
|*Pagoo.com, Inc., Series C                   |                  | 3,412,969                |      | July 2000
|Personic Software, Inc.:                     |                 
|Series G                                     |                  | 2,481,390                |      | May 2000 
|Series G Warrants, expire 5/12/05            |                  | 1,000,000                |      | May 2000 
|*ShopEaze.com, Inc., Series B                |                  | 2,097,902                |      | May 2000 
|                                            
|Total Preferred Stocks                       |                  |                          |      |          
|                                            
|Short-Term Securities28.31% (b)             |                 
|Corporate Bonds8.26%                        |                 
|Associates Corp. North America               |                 
|5.875%, 05/16/2001                           |                  | 10,000,000               |      | May 2000 

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



22
|--------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc.Schedule
of Investments October 31, 2000
|---------------------------------------------------------------------------------

|                                           
|-------------------------------------------
|Description                                
|                                           
|Short-Term Securities (continued)          
|Diageo Cap Corp. DN                        
|0.000%, 01/18/2001                         
|General Motors Acceptance Corp.            
|0.000%, 01/16/2001                         
|                                           
|Total Corporate Bonds                      
|                                           
|Certificates of Deposit2.58%              
|Bank Nova Scotia                           
|6.695%, 02/12/2001                         
|CIBC Y                                     
|7.420%, 06/04/2001                         
|                                           
|Total Certificates of Deposit              
|                                           
|U.S. Government & Agency Securities8.85%  
|Federal Farm Credit Banks                  
|5.125%, 04/02/2001                         
|Federal Home Loan Banks                    
|6.550%, 09/28/2001                         
|Federal Home Loan Mortgage Corp.           
|0.000%, 03/01/2001                         
|Federal National Mortgage Assoc. Disc. Note
|0.000%, 03/22/2001                         
|                                           
|                                           
|Total U.S. Government & Agency             
|                                           
|Commercial Paper8.62%                     
|Credit Suisse First Boston                 
|0.000%, 03/12/2001                         
|International Lease Finance Corp.          
|0.000%, 03/08/2001                         
|Motorola Inc.                              
|0.000%, 03/16/2001                         

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



23
|--------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc. Schedule of
Investments October 31, 2000
|----------------------------------------------------------------------------------

|                                      
|--------------------------------------
|Description                           
|                                      
|Commercial Paper (cont.)              
|National Rural Utilities Corp.        
|0.000%, 01/19/2001                    
|                                      
|Total Commercial Paper                
|                                      
|Total Short Term Securities           
|                                      
|Cash and Cash Equivalents37.17% (b)  
|Commercial Paper37.15%               
|ABB Treasury Centre (USA), Inc.       
|6.470%, 12/20/2000                    
|American Express Credit Corp.         
|6.480%, 11/03/2000                    
|American Telephone & Telegraph Company
|6.470%, 11/21/2000                    
|BP Amoco Cap PLC                      
|6.630%, 11/01/2000                    
|Bank NS Prop Inc.                     
|6.460%, 12/12/2000                    
|Bell South Telecomm Inc.              
|6.470%, 11/28/2000                    
|DaimlerChrysler NA Holding Corp.      
|6.480%, 11/20/2000                    
|Dupont E I De Nemours & Co.           
|6.470%, 11/10/2000                    
|Ford Motor Credit Corp.               
|6.490%, 11/17/2000                    
|General Electric Capital Corp.        
|6.480%, 11/02/2000                    
|J.P. Morgan & Company                 
|0.000%, 01/10/2001                    

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




24
|---------------------------------------------------------------------------------

|meVC Draper Fisher Jurvetson Fund I, Inc. Schedule of
Investments October 31, 2000
|----------------------------------------------------------------------------------

|                               
|-------------------------------
|Description                    
|                               
|Commercial Paper (cont.)       
|Lucent Technology Inc.         
|6.460%, 12/14/2000             
|Paccar Financial Corp.         
|6.490%, 12/01/2000             
|Pfizer Inc.                    
|6.460%, 11/16/2000             
|Verizon Global Funding         
|6.480%, 11/13/2000             
|Wal Mart Stores, Inc.          
|6.460%, 11/28/2000             
|                               
|Total Commercial Paper         
|                               
|Money Market Funds0.02%       
|SSgA Money Market Fund         
|6.307%                         
|                               
|Total Cash and Cash Equivalents
|                               
|Total Investments              
|                               

|(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 $311,446,739.
|--- |  | ----------------------------------------------------

|* |  | Affiliated
Issuers (Total Market Value of $82,299,995): companies in which the Fund owns at least 5%
of the voting securities.
|- |  | ------------------------------------------------------------------------------------------------------------------------------

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


25
|-------------------------------------------------------------------------------

|meVC Draper
Fisher Jurvetson Fund I, Inc.Notes to
Financial StatementsOctober 31,
2000



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 in conformity with
generally accepted accounting principles followed by the Fund in preparation of
its 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 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.


26
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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
generally accepted accounting principles 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.


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.


27
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The
Adviser has entered into a sub-advisory agreement with Fleet Investment
Advisors, Inc. (the Short-Term Money Manager). The Investment
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


The
Fund declared no dividends during the period ended October 31, 2000. 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 generally accepted
accounting principles. 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.



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 $668,139 payable to the Adviser. For the period ended October
31, 2000, the Adviser has paid Draper Fisher Jurvetson MeVC Management Co., LLC
(the Sub-Adviser) sub-advisory fees amounting to $1,846,114, its
portion 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 34.53% of the
Funds net assets. The preferred stocks, as discussed in Note 7, 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 as discussed
in Note 2. 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.



28
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|7.  Portfolio
Investments



During the period ended October 31, 2000,
the Fund invested $112,554,476 in sixteen companies and made no follow-on investments.
The individual equity and equity-linked security holdings of the Company at October 31,
2000 were comprised of the following investments:


Personic Software, Inc.


On
May 12, 2000, the Fund entered into a $10,000,000 investment in a Convertible
Preferred Stock issue for Personic Software, Inc (Personic). The
Funds investment consists of 2,481,390 shares of Series G Convertible
Preferred Stock (Series G Preferred Stock) at $4.03 per share. The
Fund also received 1,000,000 warrants to purchase 1,000,000 shares of Series G
Preferred Stock. The warrants expire on May 12, 2005.


The
Series G Preferred Stock ranks equally (pari passu), with respect to
liquidation preference, to the Series A Preferred Stock, the Series B Preferred
Stock, the Series E Preferred Stock and the Series F Preferred Stock and senior
to the Series C Preferred Stock, Series D Preferred Stock and Common 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.


ShopEaze.com, Inc.


On
May 25, 2000, the Fund entered into a $6,000,000 investment in a Convertible
Preferred Stock issue for ShopEaze.com, Inc. (ShopEaze). The
Funds investment consists of 2,097,902 shares of Series B Convertible
Preferred Stock (Series B Preferred Stock) at $2.86 per share.


The
Series B Preferred Stock ranks senior, with respect to liquidation preference,
to the Common Stock and any series of Preferred Stock issued prior to the Series
B. 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.


eOnline, Inc.


On
May 26, 2000, the Fund entered into approximately a $10,000,000 investment in a
Convertible Preferred Stock issue for eOnline, Inc (eOnline). The
Funds investment consists of 1,360,544 shares of Series C Convertible
Preferred Stock (Series C Preferred Stock) at $7.35 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) eOnlines
Qualified Initial Public Offering (Qualified IPO).


The
Series C Preferred Stock ranks pari passu, with respect to liquidation
preference, to the Series A Preferred Stock and the Series B Preferred Stock and
senior to the Common Stock. In the event of a 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.



infoUSA.com, Inc.



On
June 2, 2000, the Fund entered into approximately a $10,000,000 investment in a
Convertible Preferred Stock issue for infoUSA.com, Inc.
(infoUSA.com). The Funds investment consists of
2,145,922 shares of Series B Convertible Preferred Stock (Series B
Preferred Stock) at $4.66 per share.


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. 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.


29
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|Endymion Systems, Inc.



On June 2, 2000, the Fund entered into a
$7,000,000 investment in a Convertible Preferred Stock issue for Endymion Systems, Inc.
(Endymion Systems). The Funds investment consists of 7,156,760 shares of Series A
Convertible Preferred Stock (Series A Preferred Stock) at $.9781 per share.


The
Series A Preferred Stock ranks senior, with respect to liquidation preference,
to the Series B Preferred Stock and the Common 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.


EXP.com, Inc.


On
June 6, 2000, the Fund entered into approximately a $10,000,000 investment in a
Convertible Preferred Stock issue for EXP.com, Inc. (EXP). The
Funds investment consists of 1,748,252 shares of Series C Convertible
Preferred Stock (Series C Preferred Stock) at $5.72 per share.


The
Series C Preferred Stock ranks senior, with respect to liquidation preference,
to the Common Stock and any series of Preferred Stock issued prior to the Series
C. 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.


InfoImage, Inc.


On
June 7, 2000, the Fund entered into a $2,004,480 investment in a Convertible
Preferred Stock issue for InfoImage, Inc. (InfoImage). The
Funds investment consists of 432,000 shares of Series C Convertible
Preferred Stock (Series C Preferred Stock) at $4.64 per share. The
Fund also received 259,200 warrants to purchase 259,200 shares of Series C
Preferred Stock. The warrants expire at the earlier of (i) June 2, 2010 or (ii)
InfoImages Qualified Initial Public Offering (Qualified IPO).


The
Series C Preferred Stock ranks senior, with respect to liquidation preference,
to the Common Stock and any series of Preferred Stock issued prior to the Series
C. In the event of a 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.


AuctionWatch.com, Inc.


On
June 20, 2000, the Fund entered into a $5,500,000 investment in a Convertible
Preferred Stock issue for AuctionWatch.com, Inc. (AuctionWatch). The
Funds investment consists of 1,047,619 shares of Series C Convertible
Preferred Stock (Series C Preferred Stock) at $5.25 per share.


The
Series C Preferred Stock ranks pari passu, with respect to liquidation
preference, to the Series A Preferred Stock and the Series B Preferred Stock 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.


Foliofn, Inc.


On
June 21, 2000, the Fund entered into a $15,000,000 investment in a Convertible
Preferred Stock issue for Foliofn, Inc. (Foliofn). The
Funds investment consists of 5,802,259 shares of Series C Convertible
Preferred Stock (Series C Preferred Stock) at $2.59 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 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.


30
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|eYak, Inc.


On
June 26, 2000, the Fund entered into a $10,000,000 investment in a Convertible
Preferred Stock issue for eYak, Inc. (eYak). The Funds
investment consists of 2,590,674 shares of Series C Convertible Preferred Stock
(Series C Preferred Stock) at $3.86 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.


Annuncio Software, Inc.


On
July 10, 2000, the Fund entered into a $5,000,000 investment in a Convertible
Preferred Stock issue for Annuncio Software, Inc. (Annuncio). The
Funds investment consists of 625,000 shares of Series E Convertible
Preferred Stock (Series E Preferred Stock) at $8.00 per share
(Original Issue Price).


The
Series E Preferred Stock ranks senior, with respect to liquidation preference,
to the Common Stock and any series of Preferred Stock issued prior to the Series
E. In the event of a Qualified Initial Public Offering (Qualified
IPO), the Series E 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.


Pagoo.com, Inc.


On
July 11, 2000, the Fund entered into approximately a $10,000,000 investment in a
Convertible Preferred Stock issue for Pagoo.com, Inc. (Pagoo). The
Funds investment consists of 3,412,969 shares of Series C Convertible
Preferred Stock (Series C Preferred Stock) at $2.93 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.


Cidera, Inc.


On
August 31, 2000, the Fund entered into approximately a $7,500,000 investment In
Cidera, Inc. (Cidera). The Funds investment consists of
857,192 shares of Series D Convertible Preferred Stock at $8.7495 per share.


The
Series D Preferred Stock ranks pari passu, with respect to liquidation
preference, to any series of Preferred Stock issued prior to the Series D 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.


IQdestination


On
September 15, 2000, the Fund entered into a $2,300,000 investment in
IQdestination. The Funds investment consists of 1,150,000 shares of Series
B Convertible Preferred Stock at $2.00 per share.


The
Series B Preferred Stock ranks senior, with respect to liquidation preference,
to any series of Preferred Stock issued prior to the Series B and senior to the
Common 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.


31
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|MediaPrise, Inc.


On
September 27, 2000, the Fund entered into a $2,000,000 investment in MediaPrise,
Inc. (MediaPrise). The Funds investment consists of 2,196,193
shares of Series A Convertible Preferred Stock at $0.91067 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.



Lumeta
Corporation


On
October 30, 2000, the Fund entered into a $250,000 investment in Lumeta
Corporation (Lumeta). The Funds investment consists of 384,615
shares of Series A Convertible Preferred Stock at $0.65 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.



8.  Subsequent
Events


On
November 6, 2000 the Fund entered into an investment of approximately
$10,000,000 of Series C Preferred Stock of Ishoni Networks, Inc.


On
November 28, 2000, the Fund entered into a follow-on investment of approximately
$760,000 of Series G1 Preferred Stock of Personic Software, Inc.


On November 30, 2000 the Fund entered into
an investment of $200,000 of Series A Preferred Stock of Yaga, Inc.


In November 2000, a revised AICPA Audit and
Accounting Guide, Audits of Investment Companies, was issued, and is effective for fiscal
years beginning after December 15, 2000. The revised Guide will require Investment
Companies to amortize premium and discount on all fixed-income securities. The Fund
already follows this policy and currently amortizes both premium and discount on the
accrual basis.


On
December 5, 2000 the Fund announced that it declared 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.


On
December 5, 2000 the Fund filed a preliminary Proxy Statement pursuant to
Regulation 14A under the Securities and Exchange Act of 1934, as amended. The
shareholders will be asked to vote on three proposals that were unanimously
approved at the Funds most recent Board of Directors meeting: (i) To
reappoint John Grillos and Peter Freudenthal to serve on the Funds Board
of Directors for three-year terms, (ii) To ratify the selection of
PricewaterhouseCoopers LLP as the Funds independent accountants, and (iii)
To approve a new investment sub-advisory agreement between meVC Advisers and the
Sub-Adviser.


32
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|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, 2000, the results of its operations, cash
flows, shareholders equity and selected per share data and ratios for the
period March 31, 2000 (commencement of operations) through October 31, 2000, 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, 2000 by correspondence with the custodian, provides a reasonable basis for
our opinion.


PricewaterhouseCoopers LLP December 15, 2000


33
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Name and Occupation                                            | Age | Since
|-------------------------------------------------------------- | --- | -----
|John M. Grillos*                                               |     | 58   
|Chairman of the Board, Chief Executive Officer of the Fund     |    
|                                                              
|Peter S. Freudenthal*(2)                                       |     | 37   
|Vice-Chairman, Director of the Fund                            |    
|                                                              
|Larry J. Gerhard(1)(3)                                         |     | 59   
|Director of the Fund                                           |    
|                                                              
|Harold E. Hughes, Jr(1)(3)                                     |     | 54   
|Director of the Fund                                           |    
|                                                              
|Chauncey F. Lufkin(1)(2)(3)                                    |     | 43   
|Director of the Fund                                           |    
|                                                              
|Andrew E. Singer*(2)                                           |     | 30   
|President of the Fund                                          |    
|                                                              
|Paul D. Wozniak*(2)                                            |     | 36   
|Vice-President, Chief Financial Officer, Treasurer of the Fund |    
|                                                              
|Kenneth A. Priore*(2)                                          |     | 31   
|Secretary of the Fund                                          |    

|* |  | 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
|--- |  | ----------------------------------------------------

|34
|--

|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 twelve years experience in information technology venture
capital investing and twenty 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 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 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 38 years of experience in the computer and electronics industries
and has held senior management positions for the past 25 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 also Chairman of the Board and Chief Executive Officer of Pandesic
LLC, an e-commerce service provider owned jointly by Intel Corporation and SAP. 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. In addition to Pandesic, 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.




35
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 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.


Andrew E. Singer is President of the Fund.
Mr. Singer is also co-founder, Chief Financial Officer and a director of meVC.com, Inc.
and Chief Executive Officer and a director of meVC Advisers, Inc. Previously, Mr. Singer
was in the investment banking group at Robertson Stephens & Company. Before joining
Robertson Stephens, Mr. Singer was Director of New Business at The Shansby Group, a
venture capital firm managing approximately $120 million of investor capital. Mr. Singer
also served as a Financial Analyst at The Blackstone Group, a boutique investment bank,
where he evaluated investments for Blackstones $800 million leveraged acquisition fund
and provided strategic advisory services to portfolio companies of the fund. Mr. Singer
received his B.A. in East Asian Studies, cum laude with distinction in the major, from
Yale College and his M.B.A. with distinction from the Harvard Business School.


Paul D. Wozniak is Vice President, Chief
Financial Officer and Treasurer 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 fourteen 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.


Kenneth A. Priore is Secretary of the Fund.
Mr. Priore is also Internal Counsel and Director of Policy and Compliance for meVC.com,
Inc. and Secretary of meVC Advisers, Inc. Formerly, Mr. Priore was employed with Charles
Schwab & Co. in San Francisco. Most recently, Mr. Priore served as Managing Attorney:
Third Party Actions, Arbitration and Litigation, for the Office of Corporate Counsel at
Charles Schwab & Co., where he managed an active litigation docket of over 400 open
matters representing over $100 million in customer assets. Prior to that, Mr. Priore
served as Policy Director, where he was responsible for strategic planning and
participated in product development teams for retail financial services and e-commerce
applications. Mr. Priore also served as a Corporate Attorney at Charles Schwab & Co. Mr.
Priore received his B.A. from Tufts University and his J.D. from Tulane Law School.


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.




36
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Compensation Table
|------------------

|                               
|-------------------------------
|Name of       Person, Position 
|                               
|Larry J. Gerhard, Director     
|                               
|Harold E. Hughes, Jr., Director
|                               
|Chauncey F. Lufkin, Director   
|                               

|* |  | Represents
fees paid to each director during the fiscal year ended October 31, 2000.
|- |  | ------------------------------------------------------------------------------------

|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, 2000, 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 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.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|             | Amount and Nature of Beneficial Ownership
|------------ | -----------------------------------------
|
|Common Stock |                                          
|             |                                          
|             |                                          
|             |                                          
|             |                                          
|             |                                          
|             |                                          
|             |                                          
|            
|             |                                          
|             |                                          

|* |  | Indicates less than one percent.
|- |  | --------------------------------

|37
|--

|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 net assets, determined at the
end of each month and payable in arrears. For the period ended October 31, 2000,
the Investment Adviser earned an investment advisory fee in the aggregate amount
of $4,615,284.


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 net assets, determined at the
end of each month and payable in arrears. For the period ended October 31, 2000,
the Investment Sub-Adviser earned an investment advisory fee in the aggregate
amount of $1,846,114.


The
Adviser has entered into a sub-advisory agreement with Fleet Investment
Advisors, Inc. (the Short-Term Money Manager). The Investment
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.




Part IV


Item 14.  Exhibits, Financial Statements Schedules and Reports
on Form 8-K
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a)(1) | Financial Statements | Page                                                                    
|------ | -------------------- | ------------------------------------------------------------------------
|       |                      | Balance Sheet, October 31, 2000                                         
|       |                      | Statement of Operations for the period ended October 31, 2000           
|       |                      | Statement of Cash Flows for the period ended October 31, 2000           
|       |                      | Statement of Shareholders Equity for the period ended October 31, 2000 
|       |                      | Selected Per Share Data and Ratios for the period ended October 31, 2000
|       |                      | Schedule of Portfolio Securities, October 31, 2000                      
|       |                      | Notes to Financial Statements                                           
|       |                      | Report of Independent Public Accountants                                

|38
|--

|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
|--- |  | -------------------

| | During
the period ended October 31, 2000, the Fund filed one report on Form 8-K, dated June 29,
2000, to report the June 26, 2000 commencement of trading of its shares on the New York
Stock Exchange.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Exhibit 27Financial Data Schedule


Only submitted to SEC in electronic format





39
|---------------------------------------------------------------------------------------

---

|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.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Date: December 22, 2000 |  | MEVC DRAPER FISHER JURVETSON FUND I, INC./s/  JOHN M GRILLOS

John M. Grillos
Chairman,
Chief Executive Officer, Director
| | ----------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------

| | Date: December 22, 2000 |  | /s/  PAUL WOZNIAK

 Paul Wozniak
 Vice President, Treasurer, Chief Financial Officer
| | ----------------------- |  | ----------------------------------------------------------------------------------------------

|40
|--

|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.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date              | Signature                                                     | Title                                             
|----------------- | ------------------------------------------------------------- | --------------------------------------------------
|December 22, 2000 | /s/ John M. Grillos
(John M. Grillos)            | Chairman, Chief Executive Officer, Director       
|                 
|December 22, 2000 | /s/ Peter S. Freudenthal(Peter S. Freduenthal)   | Vice-Chairman, Director                           
|                 
|December 22, 2000 | /s/ Larry J. Gerhard(Larry J. Gerhard)           | Director                                          
|                 
|December 22, 2000 | /s/ Harold E. Hughes, Jr.(Harold E. Hughes, Jr.) | Director                                          
|                 
|December 22, 2000 | /s/ Chauncey F. Lufkin(Chauncey F. Lufkin)       | Director                                          
|                 
|December 22, 2000 | /s/ Andrew E. Singer(Andrew E. Singer)           | President                                         
|                 
|December 22, 2000 | /s/ Paul D. Wozniak(Paul D. Wozniak)             | Vice-President, Chief Financial Officer, Treasurer
|                 
|December 22, 2000 | /s/ Kenneth A. Priore(Kenneth A. Priore)         | Secretary                                         

|41
|--