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

                              FORM 10-K

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

                 For The Year Ended December 31, 1996

                                    OR

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

            For the transition period from N/A to N/A
                                           ---    ---

                      Commission File No. 814-55

TECHNOLOGY FUNDING VENTURE PARTNERS IV, AN AGGRESSIVE GROWTH FUND, L.P.
-----------------------------------------------------------------------
         (Exact name of Registrant as specified in its charter)

          DELAWARE                            94-3054600
-------------------------------    ----------------------------------
(State or other jurisdiction of   (I.R.S. Employer Identification No.)
incorporation or organization)

2000 Alameda de las Pulgas, Suite 250
San Mateo, California                                          94403
---------------------------------------                     --------
(Address of principal executive offices)                   (Zip Code)

                              (415) 345-2200
             --------------------------------------------------
            (Registrant's telephone number, including area code)


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

Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the preceding 12 months (or for such shorter period 
that the Registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days.
                                                        Yes  X  No   
                                                            ---    ---
Indicate by check mark if disclosure of delinquent filers pursuant to 
Item 405 of Regulation S-K is not contained herein, and will not be 
contained, to the best of registrant's knowledge, in definitive proxy 
or information statements incorporated by reference in Part III of this 
Form 10-K or any amendment to this Form 10-K.               [   ]
No active market for the units of limited partnership interests 
("Units") exists, and therefore the market value of such Units cannot 
be determined.
Documents incorporated by reference:  Portions of the Prospectus dated 
February 24, 1989, forming a part of Registration Statement No. 33-
19201, filed pursuant to Rule 424(c) of the General Rules and 
Regulations under the Securities Act of 1933, as modified by Post-
Effective Amendment No. 1 dated April 23, 1990, are incorporated by 
reference in Parts I and III hereof.  Portions of the Prospectus of 
Technology Funding Medical Partners I, L.P., as modified by Cumulative 
Supplement No. 4 dated January 4, 1995, forming a part of the May 3, 
1993, Pre-Effective Amendment No. 3 to the Form N-2 Registration 
Statement No. 33-54002 dated October 30, 1992, are incorporated by 
reference in Part III hereof.

<PAGE>
                                   PART I

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

Technology Funding Venture Partners IV, An Aggressive Growth 
Fund, L.P. (the "Partnership") is a limited partnership 
organized under the laws of the State of Delaware on December 
4, 1986, and was inactive until it commenced the sale of Units 
on January 10, 1989.  The purpose of the Partnership is to make 
venture capital investments in new and developing companies, as 
described in the "Introductory Statement" and "Business of the 
Partnership" sections of the Prospectus dated February 24, 
1989.  The Partnership has elected to be a business development 
company under the Investment Company Act of 1940, as amended 
(the "Act"), and operates as a nondiversified investment 
company as that term is defined in the Act.  Additional 
characteristics of the Partnership's business are discussed in 
the "Risk Factors" and "Conflicts of Interest" sections of the 
Prospectus, which sections are also incorporated herein by 
reference.  The Partnership's Amended and Restated Limited 
Partnership Agreement ("Partnership Agreement") provides that 
the Partnership will continue until December 31, 1997, subject 
to the right of the Management Committee to extend the term for 
up to two additional two-year periods.

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

The Registrant has no material physical properties.

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

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

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

No matter was submitted to a vote of the holders of units of 
limited partnership interests ("Units") during 1996.


                                  PART II

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

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

        (b) At December 31, 1996, there were 7,824 record holders of 
            Units.

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

Item 6.  SELECTED FINANCIAL DATA
------   -----------------------


<TABLE>
<CAPTION>
                                        For the Years Ended and As of December 31, 
                             ------------------------------------------------------------
                                 1996            1995        1994         1993        1992
                                 ----            ----        ----         ----        ----

<S>                          <C>             <C>        <C>          <C>         <C>

Total income                 $    99,272        130,779     296,948     678,321     555,324
Net operating loss            (1,423,434)    (2,106,285) (1,314,484) (1,514,788) (1,736,601)
Net realized gain (loss) from
 venture capital limited
 partnership investments         255,239             --          --     (15,402)    (25,726)
Net realized gain (loss)
  from sales of equity
  investments                    989,034        (80,764)         --  25,856,978  25,399,530
Recoveries from investments
  previously written off              --        145,248          --          --          --
Realized losses from
  investment write-downs      (1,078,341)    (2,532,447)   (843,311) (1,377,494) (3,323,404)
Net realized (loss) income    (1,257,502)    (4,574,248) (2,157,795) 20,949,294  20,313,799 
Change in net unrealized 
 fair value:
  Equity investments            (773,777)     4,065,995  (2,854,255) (9,857,060) 14,857,899
  Notes receivable	                    --         49,000       5,000      94,000    (138,391)
Net (loss) income             (2,031,279)      (459,253) (5,007,050) 11,186,234  35,033,297
Net realized (loss) income 
  per Unit                            (2)            (9)         (4)         42          45 
Total assets	                  37,025,188     43,065,771  40,606,795  43,520,755  63,032,147
Distributions declared           316,227             --          --  24,514,748  17,433,949
Distributions declared
 per Unit (1)                         --             --          --          56          40

(1) Calculation is based on distributions declared to Limited Partners divided by the 
    weighted average number of Units outstanding during the year.

</TABLE>


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

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

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

In 1996, net cash used by operating activities totaled 
$2,239,376.  The Partnership paid management fees of 
$416,956 to the Managing General Partners and reimbursed 
related parties for operating expenses of $1,422,382 in 
1996.  In addition, $47,730 was paid to the Individual 
General Partners as compensation for their services.  
Other operating expenses of $206,686 were paid and 
interest income of $69,250 was received.  The 
Partnership also paid interest of $214,872 on 
borrowings.

In 1996, the Partnership funded equity investments of 
$2,523,718 mostly to portfolio companies in the computer 
systems and software and communications industries and 
issued $640,000 in secured notes receivable to a 
portfolio company in the computer systems and software 
industry.  Repayments of secured and convertible notes 
receivable provided cash of $1,229,636.  Proceeds from 
sales of equity investments were $8,064,148 and the 
Partnership received $139,624 in cash distributions from 
venture capital limited partnership investments.

The Partnership has borrowing accounts with two 
financial institutions. The combined borrowing capacity 
of these accounts, which fluctuates based on collateral 
value, totaled $3,139,048 at December 31, 1996.  The 
Partnership had no outstanding balance at December 31, 
1996.  The Partnership's investments in SyStemix, Inc. 
and Shaman Pharmaceuticals, Inc. are pledged as 
collateral.  As disclosed in Note 5 to the financial 
statements, subsequent to year end, the Partnership sold 
its remaining investment in SyStemix, Inc., and 111,400 
shares of Shaman Pharmaceuticals, Inc. which reduced the 
borrowing capacity to $971,772 at March 20, 1997.  The 
Partnership also had a $1,363,332 promissory note 
payable which matured and was fully repaid in February, 
1997.  

During 1996, CV Therapeutics, Inc., Physiometrix, Inc., 
and Thermatrix, Inc. completed their initial public 
offerings ("IPOs").  Although the Partnership's holdings 
are partially subject to selling restrictions, these 
IPOs indicate future liquidity for the Partnership's 
investments.  

Cash and cash equivalents at December 31, 1996, were 
$1,402,668.  As of December 31, 1996, the Partnership 
was committed to fund $737,861 in additional investments 
and has an outstanding guarantee of $1,000,000 as 
discussed in Note 10 to the financial statements.  
Future proceeds from investment sales and the borrowing 
capacity on borrowing accounts are expected to be 
adequate to fund Partnership operations through the next 
twelve months.

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

1996 compared to 1995
---------------------

Net loss was $2,031,279 in 1996 compared to $459,253 in 
1995.  The increase in net loss was substantially due to 
a $4,839,772 decrease in the change in net unrealized 
fair value of equity investments.  The increase was 
partially offset by a $1,454,106 decrease in realized 
losses from investment write-downs, a $1,069,798 
increase in net realized gain from sales of equity 
investments, and a $693,702 decrease in total operating 
expenses.

During 1996, the decrease in fair value of $773,777 was 
primarily attributable to the sale of Shaman 
Pharmaceuticals, Inc., common stock as the gain was 
realized.  This decrease was partially offset by an 
increase in portfolio companies in the environmental 
industry.  In 1995, the increase in fair value of 
$4,065,995 was primarily attributable to increases in 
portfolio companies in the pharmaceuticals, computer 
systems and software and communications industries, 
partially offset by decreases in the 
medical/biotechnology industry.

During 1996, the Partnership recorded realized losses 
from investment write-downs of $1,078,341 mainly 
attributable to equity investments in a portfolio 
company in the computer systems and software industry.  
During 1995, realized losses from investment write-downs 
of $2,532,447 was mainly attributable to equity 
investments in portfolio companies in the 
microelectronics, retail/consumer products and 
communications industries.

In 1996, net realized gain from sales of equity 
investments of $989,034 was mainly due to the sale of 
Shaman Pharmaceuticals, Inc., partially offset by losses 
from Cardiometrics, Inc., Pinterra Corporation and 
Graham-Field Health Products, Inc.  During 1995, the net 
realized loss of $80,764 was mainly due to AG 
Associates, Inc.

Total operating expenses were $1,065,940 and $1,759,642 
in 1996 and 1995, respectively.  As discussed in Note 3 
to the financial statements, the 1995 total operating 
expenses included additional administrative and investor 
services expense of $812,580.  If this amount had been 
recorded in prior years, total operating expenses would 
have been $1,018,228 in 1995, compared to $1,065,940 in 
1996.  The slight increase was primarily due to higher 
investment operations and computer services expenses 
from increased overall portfolio activities, partially 
offset by lower interest expense.

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

1995 compared to 1994
---------------------

Net loss was $459,253 in 1995 compared to $5,007,050 in 
1994.  The decrease in net loss was primarily due to a 
$6,920,250 increase in the change in net unrealized fair 
value of equity investments.  The change was partially 
offset by a $1,689,136 increase in realized losses from 
investment write-downs, a $647,394 increase in total 
operating expenses and a $166,169 decrease in total 
income.

During 1995, the increase in fair value of $4,065,995 
was primarily attributable to increases in portfolio 
companies in the pharmaceuticals, computer systems and 
software, and communications industries, partially 
offset by decreases in the medical/biotechnology 
industry.  In 1994, the decrease of $2,845,255 was 
primarily attributable to decreases in portfolio 
companies in the pharmaceuticals and microelectronics 
industries, partially offset by increases in the 
communications and medical/biotechnology industries.

During 1995, the Partnership recorded realized losses 
from investment write-downs of $2,532,447 mainly 
attributable to portfolio companies in the 
microelectronics, retail/consumer products and 
communications industries.  There were $843,311 in 
investment write-downs in 1994 primarily related to 
equity investments in the medical/biotechnology and 
microelectronics industries.

Total operating expenses were $1,759,642 and $1,112,248 
in 1995 and 1994, respectively.  As discussed in Note 3 
to the financial statements, the 1995 total operating 
expenses included additional administrative and 
investors services expense of $812,580.  If this amount 
had been recorded in prior years, total operating 
expenses would have been $1,018,228 and $1,196,527 in 
1995 and 1994, respectively.  The decrease was primarily 
due to lower administrative and investor services, and 
investment operations expenses from lower overall 
portfolio activities, partially offset by higher 
interest expense from short-term borrowings.

Total income was $130,779 and $296,948 in 1995 and 1994, 
respectively.  The decrease was primarily due to lower 
outstanding convertible and secured notes receivable 
balances.

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

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

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

Registrant has reported no disagreements with its 
accountants on matters of accounting principles or 
practices or financial statement disclosure.

                               PART III

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

As a partnership, the Registrant has no directors or 
executive officers.  The Management Committee is 
responsible for the management and administration of the 
Partnership.  The members of the Management Committee 
consist of the three Individual General Partners and a 
representative from each of Technology Funding Ltd., a 
California limited partnership ("TFL"), and its wholly-
owned subsidiary, Technology Funding Inc., a California 
corporation ("TFI").  TFL and TFI are the Managing 
General Partners.  Information concerning the ownership 
of TFL and the business experience of the key officers 
of TFI and the partners of TFL is incorporated by 
reference from the sections entitled "Management of the 
Partnership - The General Partners" and "Management of 
the Partnership - Key Personnel of the Managing General 
Partners" in the Prospectus.  Changes in this 
information that have occurred since the date of the 
Prospectus are included in the Technology Funding 
Medical Partners I, L.P. Prospectus, as modified by 
Cumulative Supplement No. 4 dated January 4, 1995, 
forming a part of the May 3, 1993, Pre-Effective 
Amendment No. 3 to the Form N-2 Registration Statement 
No. 33-54002 dated October 30, 1992, which are 
incorporated herein by reference.

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

As a partnership, the Registrant has no officers or 
directors.  In 1996, the Partnership incurred $409,036 
in management fees.  The fees are designed to compensate 
the Managing General Partners for General Partner 
Overhead incurred in performing management duties for 
the Partnership through December 31, 1996.  General 
Partner Overhead (as defined in the Partnership 
Agreement) includes the General Partners' share of rent 
and utilities, and certain salaries and benefits paid by 
the Managing General Partners in performing their 
obligations to the Partnership.  As compensation for 
their services, the Individual General Partners each 
receive $10,000 annually, plus $1,000 for each attended 
meeting of the management committee and related 
expenses.  In 1996, $47,730 of such fees were paid.

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

Not applicable.  No Limited Partner beneficially holds 
more than 5% of the aggregate number of Units held by 
all Limited Partners, and neither the Managing General 
Partners nor any of their officers, directors or 
partners own any Units.  The three Individual General 
Partners each own 20 Units.  The General Partners 
control the affairs of the Partnership pursuant to the 
Partnership Agreement.

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

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

PART IV

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

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

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

                  Independent Auditors' Report
                  Balance Sheets as of December 31, 1996
                    and 1995
                  Statements of Operations for the years
                    ended December 31, 1996, 1995 and 1994
                  Statements of Partners' Capital for the years
                    ended December 31, 1996, 1995 and 1994
                  Statements of Cash Flows for the years
                    ended December 31, 1996, 1995 and 1994
                  Notes to Financial Statements

             (2)  Financial Statement Schedules

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

             (3)  Exhibits

Registrant's Amended and Restated Limited 
Partnership Agreement (incorporated by 
reference to Exhibit A to Registrant's 
Prospectus dated February 24, 1989, included 
in Registration Statement No. 33-19201 filed 
pursuant to Rule 424(b) of the General Rules 
and Regulations under the Securities Act of 
1933).

         (b)  Reports on Form 8-K

              No reports on Form 8-K were filed by the Registrant 
during the year ended December 31, 1996.

         (c)  Financial Data Schedule for the year ended and as 
of December 31, 1996 (Exhibit 27).
<PAGE>

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

The Partners
Technology Funding Venture Partners IV, An Aggressive Growth 
Fund, L.P.:


We have audited the accompanying balance sheets of Technology 
Funding Venture Partners IV, An Aggressive Growth Fund, L.P. (a 
Delaware limited partnership) as of December 31, 1996 and 1995, 
and the related statements of operations, partners' capital, and 
cash flows for each of the years in the three-year period ended 
December 31, 1996.  These financial statements are the 
responsibility of the Partnership's management.  Our 
responsibility is to express an opinion on these financial 
statements based on our audits.

We conducted our audits in accordance with generally accepted 
auditing standards.  Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether 
the financial statements are free of material misstatement.  An 
audit includes examining, on a test basis, evidence supporting 
the amounts and disclosures in the financial statements.  Our 
procedures included confirmation of certain securities and loans 
owned, by correspondence with the individual investee and 
borrowing companies, and a physical examination of those 
securities held by a safeguarding agent as of December 31, 1996 
and 1995.  An audit also includes assessing the accounting 
principles used and significant estimates made by management, as 
well as evaluating the overall financial statement presentation.  
We believe that our audits provide a reasonable basis for our 
opinion.

In our opinion, the financial statements referred to above 
present fairly, in all material respects, the financial position 
of Technology Funding Venture Partners IV, An Aggressive Growth 
Fund, L.P. as of December 31, 1996 and 1995, and the results of 
its operations and its cash flows for each of the years in the 
three-year period ended December 31, 1996, in conformity with 
generally accepted accounting principles.



San Francisco, California                /S/KPMG Peat Marwick LLP
March 21, 1997


<PAGE>

BALANCE SHEETS
--------------

<TABLE>
<CAPTION>
                                                 December 31,
                                           ----------------------
                                             1996          1995
                                             ----          ----
<S>                                      <C>          <C>

ASSETS

Investments:
  Equity investments (cost basis of 
   $18,522,217 and $24,932,960 for 1996
   and 1995, respectively)               $35,527,098  42,711,618
  Secured notes receivable, net 
    (cost basis of $29,137 and 
    $67,826 for 1996 and 1995,
    respectively)                             29,137      67,826
                                          ----------  ----------

       Total investments                  35,556,235  42,779,444

Cash and cash equivalents                  1,402,668     274,980

Other assets                                  66,285      11,347
                                          ----------  ----------

       Total                             $37,025,188  43,065,771
                                          ==========  ==========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses    $    38,429      22,993

Due to related parties                        90,890     856,733

Short-term borrowings                             --   2,902,626

Promissory note                            1,363,332   1,363,332

Interest payable                              28,350      29,209

Other liabilities                             21,455      60,640
                                          ----------  ----------

    Total liabilities                      1,542,456   5,235,533

Commitments, contingencies and 
 subsequent events 
(Notes 3, 5, 8, 9 and 10)

Partners' capital:
  Limited Partners
   (Units outstanding of 400,000
    for both 1996 and 1995)               17,224,580  18,182,086
  Managing General Partners                1,253,271   1,869,494
  Net unrealized fair value increase 
    from cost of equity investments       17,004,881  17,778,658
                                          ----------  ----------

    Total partners' capital               35,482,732  37,830,238
                                          ----------  ----------

      Total                              $37,025,188  43,065,771
                                          ==========  ==========

</TABLE>
See accompanying notes to financial statements.

<PAGE>

STATEMENTS OF OPERATIONS
------------------------
<TABLE>
<CAPTION>

                               For the Years Ended December 31,
                             ------------------------------------
                                1996          1995        1994
                                ----          ----        ----
<S>                       <C>           <C>           <C>

Income:
  Secured notes receivable 
   interest               $    90,508      117,677       271,361
  Short-term investments
   interest                     2,999       11,935        21,380
  Other income                  5,765        1,167         4,207
                            ---------    ---------     ---------

     Total income              99,272      130,779       296,948

Costs and expenses:
  Management fees             409,036      429,523       456,017
  Individual General 
   Partners' compensation      47,730       47,899        42,000
  Amortization of 
   organizational costs            --           --         1,167
  Operating expenses:
    Investment operations     254,854      132,665       433,926
    Administrative and 
     investor services        383,059    1,106,796       445,707
    Computer services         128,227       88,742       108,310
    Professional fees          85,787       84,105        89,419
    Interest expense          214,013      347,334        34,886
                            ---------    ---------     ---------

      Total operating 
       expenses             1,065,940    1,759,642     1,112,248
                            ---------    ---------     ---------

  Total costs and expenses  1,522,706    2,237,064     1,611,432
                            ---------    ---------     ---------

Net operating loss         (1,423,434)  (2,106,285)   (1,314,484)

  Net realized gain
   from venture 
   capital limited
   partnership investments    255,239           --            -- 
  Net realized gain (loss)
   from sales of equity
   investments                989,034      (80,764)           --
  Recoveries from 
   investments previously 
   written off                     --      145,248            --
  Realized losses from 
   investment write-downs  (1,078,341)  (2,532,447)     (843,311)
                            ---------    ---------     ---------

Net realized loss          (1,257,502)  (4,574,248)   (2,157,795)

Change in net unrealized
 fair value:
  Equity investments         (773,777)   4,065,995    (2,854,255)
  Secured notes receivable         --       49,000         5,000
                            ---------    ---------     ---------

Net loss                  $(2,031,279)    (459,253)   (5,007,050)
                            =========    =========     =========

Net realized loss
  per Unit                $        (2)          (9)           (4)
                            =========    =========     =========
</TABLE>
See accompanying notes to financial statements.



<PAGE>
STATEMENTS OF PARTNERS' CAPITAL
-------------------------------

<TABLE>
<CAPTION>
For the years ended December 31, 1996, 1995 and 1994:

                                                   Net Unrealized Fair Value
                                                 Increase (Decrease) From Cost
                                                 -----------------------------
                                        Managing
                            Limited      General     Equity        Notes 
                            Partners    Partners   Investments   Receivable   Total
                            --------    --------   -----------   ----------   -----

<S>                      <C>           <C>          <C>           <C>      <C>


Partners' capital, 
 December 31, 1993        $23,567,720    3,215,903  16,566,918    (54,000)  43,296,541

Net realized loss          (1,726,236)    (431,559)         --         --   (2,157,795)

Change in net unrealized
 fair value:
  Equity investments               --           --  (2,854,255)        --   (2,854,255)
  Secured notes receivable         --           --          --      5,000        5,000
                           ----------    ---------  ----------    -------   ----------
Partners' capital, 
 December 31, 1994         21,841,484    2,784,344  13,712,663    (49,000)  38,289,491

Net realized loss          (3,659,398)    (914,850)         --         --   (4,574,248)

Change in net unrealized
 fair value:
  Equity investments               --           --   4,065,995         --    4,065,995
  Secured notes receivable         --           --          --     49,000       49,000
                           ----------    ---------  ----------    -------   ----------

Partners' capital, 
 December 31, 1995         18,182,086    1,869,494  17,778,658         --   37,830,238

Net realized loss            (957,506)    (299,996)         --         --   (1,257,502)

Distributions                      --     (316,227)         --         --     (316,227)

Change in net unrealized
 fair value of
 equity investments                --           --    (773,777)        --     (773,777)
                           ----------    ---------  ----------    -------   ----------

Partners' capital, 
 December 31, 1996        $17,224,580    1,253,271  17,004,881         --   35,482,732
                           ==========    =========  ==========    =======   ==========

See accompanying notes to financial statements.

</TABLE>


<PAGE>

STATEMENTS OF CASH FLOWS
------------------------

<TABLE>
<CAPTION>

                                 For The Years Ended December 31,
                             ------------------------------------
                               1996           1995        1994
                               ----           ----        ----
<S>                        <C>           <C>          <C>


Cash flows from operating
 activities:
  Interest received        $    69,250       97,362      127,524
  Cash paid to vendors        (206,686)    (210,162)    (267,943)
  Cash paid to related 
   parties                  (1,887,068)    (963,722)  (1,349,828)
  Interest paid on short-
   term borrowings            (214,872)    (318,125)     (34,886)
  Reimbursement of 
   collection expenses 
   received from portfolio
   companies                        --       89,715           --
                             ---------    ---------    ---------

    Net cash used by 
     operating activities   (2,239,376)  (1,304,932)  (1,525,133)
                             ---------    ---------    ---------

Cash flows from investing
 activities:
  Notes receivable issued     (640,000)     (62,500)          -- 
  Purchase of equity 
   investments              (2,523,718)  (1,331,665)  (3,758,976)
  Repayment of notes 
   receivable                   35,186      290,269       24,766
  Repayment of equity
   investments               1,194,450      193,500           --
  Recoveries from 
   investments previously
   written off                      --      100,000           --
  Proceeds from sales of
    equity investments       8,064,148    1,272,527           --
  Distributions from 
   venture capital limited
   partnership investments     139,624      372,522       29,129
                             ---------    ---------    ---------
    Net cash provided
     (used) by investing 
     activities              6,269,690      834,653   (3,705,081)
                             ---------    ---------    ---------

Cash flows from financing
 activities:
 (Repayments of) proceeds
   from short-term
   borrowings, net          (2,902,626)     734,758    2,167,868
                             ---------    ---------    ---------

  Net cash (used) provided 
   by financing activities  (2,902,626)     734,758    2,167,868 
                             ---------    ---------    ---------

Net increase (decrease) in
 cash and cash equivalents   1,127,688      264,479   (3,062,346)

Cash and cash equivalents 
 at beginning of year          274,980       10,501    3,072,847
                             ---------    ---------    ---------

Cash and cash equivalents 
 at end of year            $ 1,402,668      274,980       10,501
                             =========    =========    =========

</TABLE>
See accompanying notes to financial statements.

<PAGE>

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

<TABLE>
<CAPTION>

                               For the Years Ended December 31,
                           --------------------------------------
                               1996         1995          1994
                               ----         ----          ----
<S>                        <C>          <C>          <C>



Reconciliation of net 
 loss to net cash used by
 operating activities:

Net loss                   $(2,031,279)    (459,253)  (5,007,050)
Adjustments to reconcile 
 net loss to net cash 
 used by operating activities:
  Net realized gain
   from venture capital
   limited partnership 
   investments                (255,239)          --           --
  Net realized (gain) loss 
   from sales of equity 
   investments                (989,034)      80,764           -- 
  Realized losses from 
   investment write-downs    1,078,341    2,532,447      843,311
  Recoveries from
   investments previously
   written off                      --     (145,248)          --
  Change in net unrealized 
   fair value:
     Equity investments        773,777   (4,065,995)   2,854,255
     Secured notes receivable       --      (49,000)      (5,000)
  Other, net                        --       (1,292)         667

Changes in:
  Accrued interest on 
   notes receivable            (30,022)     (32,125)    (168,924)
  Accounts payable and 
   accrued expenses             14,686       (1,986)     (37,701)
  Due to/from related 
   parties                    (765,843)     827,098      (56,112)
  Other, net                   (34,763)       9,658       51,421
                             ---------    ---------    ---------

Net cash used by 
 operating activities      $(2,239,376)  (1,304,932)  (1,525,133)
                             =========    =========    =========

Non-cash investing
 activities:

Purchase of equity
 investments financed
 by a promissory note      $        --    1,363,332           --
                             =========    =========    =========

Reclassification of secured
 notes to equity investments
(subordinated notes 
 receivable)               $   640,000           --           --
                             =========   ==========   ==========

Stock distributions to
 General Partners (see
 Note 3)                   $   316,227           --           --
                             =========   ==========   ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>

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

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

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

Technology Funding Venture Partners IV, An Aggressive Growth 
Fund, L.P. (the "Partnership") is a limited partnership organized 
under the laws of the State of Delaware on December 4, 1986.  The 
purpose of the Partnership is to make venture capital investments 
in new and developing companies.  The Partnership elected to be a 
business development company under the Investment Company Act of 
1940, as amended (the "Act"), and operates as a nondiversified 
investment company as that term is defined in the Act.  The 
Managing General Partners are Technology Funding Ltd. ("TFL") and 
Technology Funding Inc. ("TFI"), a wholly-owned subsidiary of 
TFL.  There are also three Individual General Partners. 

The Partnership's registration statement was declared effective 
by the Securities and Exchange Commission on November 14, 1988, 
and the Partnership commenced selling units of limited 
partnership interests ("Units") on January 10, 1989.

On February 16, 1989, the minimum number of Units required to 
commence Partnership operations (15,000) were sold.  The offering 
terminated with 400,000 Units sold on September 14, 1990.  The 
Partnership Agreement provides that the Partnership will continue 
until December 31, 1997, unless further extended for up to two 
additional two-year periods from such date if the Managing 
General Partners so determine or unless sooner dissolved.

Preparation of Financial Statements and Use of Estimates
--------------------------------------------------------

These financial statements have been prepared on the accrual 
basis of accounting in accordance with the generally accepted 
accounting principles.  This required management to make 
estimates and assumptions that affect the reported amounts of 
assets and liabilities and disclosure of contingent assets and 
liabilities at the date of the financial statements and the 
reported amounts of revenues and expenses during the reporting 
period.  Actual results could differ from those estimates.

The financial statements included marketable and non-marketable 
investments of $35,556,235 and $42,779,444 (100% and 113% of 
partners' capital) as of December 31, 1996 and 1995.  For the 
non-marketable investments, the Managing General Partners have 
estimated the fair value of such investments in the absence of 
readily ascertainable market values.  Because of the inherent 
uncertainty of valuation, those estimated values may differ 
significantly from the values that would have been used had a 
ready market for investments existed, and the differences could 
be material.  In addition, for certain publicly traded 
investments that may not be marketable due to selling 
restrictions, the Managing General Partners have applied an 
illiquidity discount of up to 33% in determining fair value as 
discussed below.

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

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

Organizational Costs
--------------------

Organizational costs of $35,000 were amortized over 60 months 
using the straight-line method.

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

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

Since the accompanying financial statements are prepared using 
generally accepted accounting principles which may not equate to 
tax accounting, the Partnership's total tax basis in investments 
was higher than the reported total cost basis of $18,551,354 by 
$4,462,106 as of December 31, 1996.

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

Net realized income (loss) per Unit is calculated by dividing the 
number of Units outstanding (400,000) as of December 31, 1996, 
1995 and 1994 into the total net realized income (loss) allocated 
to the Limited Partners.  The Managing General Partners 
contributed an amount equal to 0.1% of total Limited Partner 
capital contributions and did not receive any Partnership Units.

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

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

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

The fair value for publicly-traded equity investments (marketable 
equity securities) is based upon the five-day-average closing 
sales price or bid/ask price that is available on a national 
securities exchange or over-the-counter market.  Certain 
publicly-traded equity investments may not be marketable due to 
selling restrictions.  For publicly-traded equity investments 
with selling restrictions, an illiquidity discount of up to 33% 
is applied when determining fair value; the actual discount 
percentage is based on the type and length of the restrictions.  
Sales of equity investments are recorded on the trade date.  The 
basis on which cost is determined in computing realized gains or 
losses is generally specific identification.

Other equity investments, which are not publicly traded, are 
generally valued utilizing pricing obtained from the most recent 
round of third-party financings.  Valuation is determined 
quarterly by the Managing General Partners.  Included in equity 
investments are convertible and subordinated notes receivable as 
repayment of these notes generally occur through conversion into 
equity investments.

Venture capital limited partnership investments are initially 
recorded at cost and reduced for distributions that are a return 
of capital.  Distributions from limited partnership cumulative 
earnings are reflected as realized gains by the Partnership.

Equity and venture capital limited partnership investments with 
temporary changes in fair value result in increases or decreases 
to the unrealized fair value of equity investments.  The cost 
basis does not change.  In the case of an other than temporary 
decline below cost basis, an appropriate reduction in the cost 
basis is recognized as a realized loss with the fair value being 
adjusted to match the new cost basis.  Adjustments to fair value 
basis are reflected as "Change in net unrealized fair value of 
equity investments."  Cost basis adjustments are reflected as 
"Realized losses from investment write-downs" or "Net realized 
gain (loss) from venture capital limited partnership investments" 
in the Statements of Operations.

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

The secured notes receivable portfolio includes accrued interest 
less the discount related to warrants and the allowance for loan 
losses.  The portfolio approximates fair value through inclusion 
of an allowance for loan losses.  Allowance for loan losses is 
reviewed quarterly by the Managing General Partners and is 
adjusted to a level deemed adequate to cover possible losses 
inherent in notes and unfunded commitments.  Secured notes 
receivable are placed on nonaccrual status when, in the opinion 
of the Managing General Partners, the future collectibility of 
interest or principal is in doubt.

In conjunction with the notes issued to portfolio companies, the 
Partnership has received warrants to purchase certain shares of 
capital stock of the borrowing companies.  The cost basis of the 
warrants and the resulting discount has been estimated by the 
Managing General Partners to be 1% of the principal balance of 
the original notes made to the borrowing companies.  The discount 
is amortized to interest income on a straight-line basis over the 
term of the loan.  Warrants received in conjunction with 
convertible notes are not assigned any additional costs.  These 
warrants are included in the equity investment portfolio.

Non-cash Exercise of Warrants
-----------------------------

Periodically, the Partnership may acquire stock through the non-
cash exercise of warrants.  Upon the non-cash exercise of 
warrants, the Partnership recorded a net realized loss of $3,124 
in 1996, as a result of the underlying stock prices at the date 
of exercise.  This amount is included in net realized gain from 
sales of equity investments.  During 1995 and 1994, there were no 
such transactions.

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

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

<TABLE>
<CAPTION>

                              For the Years Ended December 31,
                              --------------------------------
                               1996           1995       1994
                               ----           ----       ----
<S>                        <C>           <C>          <C>

Increase in fair value 
 from cost of marketable
 equity securities         $ 5,609,313    5,167,115    1,592,683

Increase in fair value
 from cost of non-marketable
 equity securities          11,395,568   12,611,543   12,119,980
                            ----------   ----------   ----------

  Net unrealized fair
   value increase from 
   cost at end of year      17,004,881   17,778,658   13,712,663

  Net unrealized fair
   value increase
   from cost at
   beginning of year        17,778,658   13,712,663   16,566,918
                            ----------   ----------   ----------

Change in net unrealized
 fair value of equity
 investments               $  (773,777)   4,065,995   (2,854,255)
                            ==========   ==========   ==========
</TABLE>

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

Related party costs are included in costs and expenses shown on 
the Statements of Operations.  Related party costs in 1996, 1995 
and 1994 were as follows:

<TABLE>
<CAPTION>

                              For the Years Ended December 31,
                            -------------------------------------
                             1996           1995           1994
                             ----           ----           ----

<S>                        <C>            <C>            <C>

Management fees            $409,036       429,523        456,017
Individual General
 Partners' compensation      47,730        47,899         42,000
Amortization of
 organizational costs            --            --          1,167
Reimbursable operating
 expenses:
  Investment operations     238,851       117,397        398,855 
  Administrative and
   investor services        297,381     1,017,544        288,534
  Computer services         128,227        88,742        108,310

</TABLE>

Management fees are equal to two percent for the fifth year of 
Partnership operations, and one quarter of one percent of the 
fair value of Partnership assets for each quarter in the sixth 
and subsequent years.  The Partnership's sixth year began in mid-
February of 1994.  Management fees compensate the Managing 
General Partners solely for General Partner Overhead (as defined 
in the Partnership Agreement) incurred in supervising the 
operation and management of the Partnership and the Partnership's 
investments.  Management fees due to the Managing General 
Partners were $30,427 and $38,347 at December 31, 1996 and 1995, 
respectively.

As compensation for their services, each of the Individual 
General Partners receives $10,000 annually, plus $1,000 for each 
attended meeting of the Management Committee and related 
expenses.  The three Individual General Partners each own 20 
Units.

The Partnership reimburses the Managing General Partners for 
operating expenses incurred in connection with the business of 
the Partnership.  Reimbursable operating expenses include 
expenses (other than Organizational and Offering expenses and 
General Partner Overhead) such as investment operations, 
administrative and investor services and computer services.  
During late 1995, operating cost allocations to the Partnership 
were reevaluated.  The Managing General Partners determined that 
they had not fully recovered allocable overhead as permitted by 
the Partnership Agreement.  As a result, the Partnership was 
charged additional administrative and investor services costs of 
$812,580, which was not previously recognized by the Partnership; 
this charge consisted of $71,166, $84,279 and $657,135 related to 
1995, 1994 and prior years, respectively.  If this charge had 
been recorded in prior years, total operating expenses would have 
been $1,018,228 and $1,196,527 for 1995 and 1994, respectively, 
compared to $1,065,940 for 1996.  At December 31, 1996, there was 
$60,463 of such reimbursable expenses due to related parties 
compared to $818,386 due to related parties at December 31, 1995.

In September of 1996, the Partnership made a tax distribution of 
57,917 Thermatrix, Inc., common shares to the General Partners 
(based on estimated annual taxable income); the shares had a fair 
value of $316,227 resulting in a realized gain of $12,163 being 
recognized by the Partnership.

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

See Note 5 to the financial statements regarding 1996 
transactions between the Partnership and Multiport, Inc., a 
wholly owned corporation of the Partnership.

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

Net realized profit and loss of the Partnership are allocated 
based on the beginning of year partners' capital balances as 
follows:

(a)   Profits:

(i)  First, to those partners with deficit capital   
account balances until such deficits have been 
eliminated; then

(ii) Second, to the partners as necessary to offset the 
net loss and sales commissions previously 
allocated under (b)(ii) below; then

(iii)75% to the Limited Partners as a group in 
proportion to the number of Units held, 5% to the 
Limited Partners in proportion to the Unit Months 
of each Limited Partner, and 20% to the Managing 
General Partners.  Unit months are the number of 
half months a Unit would be outstanding if held 
from the date the original holder of such Unit was 
deemed admitted into the Partnership until the 
termination of the offering of Units.

(b)   Losses:

(i)  First, to the partners as necessary to offset the 
net profit previously allocated to the partners 
under (a)(iii) above; then

(ii) 99% to the Limited Partners and 1% to the Managing 
General Partners.

Losses allocable to Limited Partners in excess of their capital 
account balances will be allocated to the Managing General 
Partners, with net profit thereafter otherwise allocable to those 
Limited Partners being allocated to the Managing General Partners 
to the extent of such losses.

Losses from unaffiliated venture capital limited partnership 
investments are allocated pursuant to section (b) above.  Gains 
are allocated first to offset previously allocated losses 
pursuant to (b)(i) above, and then 99% to the Limited Partners 
and 1% to the Managing General Partners.

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




5.  Equity Investments
    ------------------

December 31, 1996 and 1995, equity investments consisted of:

<TABLE>
<CAPTION>
                                        Original     December 31, 1996    December 31, 1995
                                        Principal   ------------------    -----------------
                            Investment  Amount or    Cost      Fair       Cost       Fair
Industry/Company  Position     Date      Shares      Basis     Value      Basis      Value
----------------  --------     ----      ------      -----     -----      -----      -----

<S>                <C>          <C>   <C>        <C>         <C>        <C>        <C>

Communications
--------------
Coded              Common
 Communications    shares
 Corporation                    04/93    145,454 $        --         --    149,818    143,999
NetChannel, Inc.   Series B
                   Preferred
                   shares       10/96    136,363     148,499    148,499         --         --
NetChannel, Inc.   Series B
                   Preferred
                   share warrant
                   at $1.10;
                   expiring
                   10/99        10/96    136,363       1,500      1,500         --         --
Pinterra           Convertible
 Corporation       note (1)
 (formerly
 Terrapin, Inc.)                05/95   $125,000          --         --    131,000    131,000
Pinterra           Convertible
 Corporation       note (1)
 (formerly
 Terrapin, Inc.)                08/95   $125,000          --         --    128,448    128,448
Pinterra           Convertible
 Corporation       note (1)
 (formerly
 Terrapin, Inc.)                12/95   $125,000          --         --    125,586    125,586
UT Starcom, Inc.   Common
 (formerly         share 
 Unitech Telecom,  warrant
 Inc.)             at $0.6875;
                   expiring
                   05/99        05/94    145,456           0    900,736          0    502,187
UT Starcom, Inc.   Series A
 (formerly         Preferred
 Unitech Telecom,  shares
 Inc.)                          03/95    187,500     375,000  1,290,000    375,000    776,250
VOIS, Inc.         Common
                   shares       08/96    300,000           0     30,000         --         --
VOIS, Inc.         Series A
                   Preferred
                   shares       08/96    100,000     100,000    100,000         --         --
VOIS, Inc.         Series A
                   Preferred
                   shares       09/96    150,000     150,000    150,000         --         --
Wire Networks,     Series A
 Inc.              Preferred
                   shares       02/96      6,098       8,232      8,232         --         --
Wire Networks,     Series B
 Inc.              Preferred
                   shares       02/96      7,452      16,767     16,767         --         --
Wire Networks,     Convertible
 Inc.              note (1)     11/96   $101,973     102,908    102,908         --         --

Computer Systems and Software
-----------------------------
Ascent Logic       Common
 Corporation       share
                   warrant
                   at $.94;
                   expiring
                   03/97        03/92     31,915       2,500          0      2,500          0
Ascent Logic       Series C
 Corporation       Preferred
                   shares       10/92    106,383      99,000     37,234     99,000     37,234
Multiport, Inc.    Series A
                   Preferred    05/93-
                   shares       08/93  2,440,000     797,400  1,828,383    797,400  2,528,905
Quintar            Series A
 Corporation       Convertible
                   Preferred
                   shares       11/89  1,200,000   1,200,000  1,800,000  1,200,000  1,800,000
Quintar            Common
 Corporation       share
                   warrant
                   at $1.00;
                   expiring
                   10/98        10/93    145,000           0     72,500          0     72,500
Quintar            Series A
 Corporation       Preferred
                   shares       05/95    384,178     576,267    576,267    576,267    576,267
Reflection         Series F
 Technology, Inc.  Preferred
                   shares       01/94     28,572      50,001     58,573     50,001     88,573
Reflection         Common
 Technology, Inc.  shares       05/94     19,567      22,502     40,112     22,502     60,658
Reflection         Series D
 Technology, Inc.  Preferred
                   shares       11/94    869,565   1,000,000  1,782,608  1,000,000  2,695,652
Reflection         Series G
 Technology, Inc.  Preferred
                   shares       11/94    172,877     312,500    377,788    312,500    535,918
Reflection         Series D
 Technology, Inc.  Preferred
                   shares       11/94    163,043     187,498    334,238    187,498    505,433
Reflection         Series I
 Technology, Inc.  Preferred
                   shares       11/95     40,322          --         --    124,998    124,998
Reflection         Common
 Technology, Inc.  share    
                   warrant
                   at $.50;
                   expiring
                   04/01        04/96    359,750           0    557,613         --         --
Reflection         Series J
 Technology, Inc.  Preferred
                   shares       04/96    547,918   1,123,232  1,123,232         --         --
Velocity           Series A
 Incorporated      Preferred
                   shares       10/94  6,286,325          --         --  1,034,337  1,034,337
Velocity           Common
 Incorporated      share
                   warrant
                   at $1.00;
                   expiring 
                   03/00        03/95     12,500          --         --          0          0
Velocity           Subordinated 08/95-
 Incorporated      notes (1)    10/95   $125,000          --         --    125,000    125,000

Environmental
-------------
Naiad Technologies,Series A
 Inc. (formerly    Preferred
 TMC, Inc.)        shares       12/95     50,000      25,000    100,000     25,000     25,000
Naiad Technologies,Series B 
 Inc. (formerly    Preferred
 TMC, Inc.)        shares       11/96     62,602     125,204    125,204         --         --
SunPower           Series A
 Corporation       Preferred  
                   shares       09/90    210,000     210,000    682,500    210,000    323,400
SunPower           Series B
 Corporation       Redeemable
                   Preferred
                   shares       06/91    420,000     457,800  1,365,000    457,800    646,800
SunPower           Series B1
 Corporation       Preferred
                   shares       06/93    270,000     337,500    877,500    337,500    415,800
SunPower           Series C
 Corporation       Preferred
                   shares       06/93     32,468      50,001    105,521     50,001     50,001
SunPower           Series D
 Corporation       Preferred
                   shares       11/94     81,169     123,750    263,799    123,750    123,750
SunPower           Series D
 Corporation       Preferred
                   share
                   warrant
                   at $1.54;
                   expired
                   11/96        11/94     81,169          --         --      1,250      1,250
Thermatrix, Inc.   Series B
                   Preferred
                   shares       04/91  1,756,204          --         --  1,318,453  4,390,510
Thermatrix, Inc.   Common
                   shares       04/91        387          --         --        347        968
Thermatrix, Inc.   Series B
                   Preferred
                   shares       12/92  1,272,967          --         --  1,272,967  3,182,418
Thermatrix, Inc.   Common
                   shares       07/94        120          --         --         30        300
Thermatrix, Inc.   Series D
                   Preferred
                   shares       11/94    323,120          --         --    807,800    807,800
Thermatrix, Inc.   Common
                   shares       06/96  1,105,847   3,095,533  8,142,369         --         --

Medical/Biotechnology
---------------------
Biex, Inc.         Series A
                   Preferred
                   shares       07/93    128,205      83,333    192,308     83,333    128,205
Biex, Inc.         Series B
                   Preferred
                   shares       10/94     63,907      63,907     95,861     63,907     63,907
Biex, Inc.         Series B
                   Preferred
                   share
                   warrant
                   at $1.00;
                   expiring
                   10/99        10/94     23,540           8     11,770          8          0
Biex, Inc.         Series C
                   Preferred
                   shares       06/95     83,334      83,334    125,001     83,334     83,334
Biex, Inc.         Series C
                   Preferred
                   shares       12/95     83,333      83,333    125,000     83,333     83,333
Biex, Inc.         Series C
                   Preferred
                   shares       04/96     83,333      83,333    125,000         --         --
Biex, Inc.         Series D
                   Preferred
                   shares       08/96    111,115     166,673    166,673         --         --
Cardiometrics,     Common
 Incorporated      shares       11/95    359,748          --         --  2,665,750  2,023,577
CV Therapeutics,   Series D
 Inc.              Preferred
                   shares       03/94    312,500          --         --    625,000    625,000
CV Therapeutics,   Common 
 Inc.              shares       11/96     37,693     685,320    179,015         --         --
Endocare, Inc.     Common
                   shares       08/96        250         750        603         --         --
Endocare, Inc.     Common
                   share
                   warrant 
                   at $3.00
                   expiring
                   08/01        08/96      3,750           0      1,508         --         --
Endocare, Inc.     Convertible
                   note (1)     08/96    $18,750      19,817     19,817         --         --
Graham-Field       Common
 Health Products,  shares
 Inc. (formerly
 Everest & 
 Jennings          
 Interventional     
 Ltd.)                          01/94    592,720          --         --    637,519    325,996
Inhale Therapeutic Common
 Systems, Inc.     shares       12/95      4,125      46,922     61,826     46,922     43,519
Inhale Therapeutic Common
 Systems, Inc.     shares       03/96      6,270     105,023     93,975         --         --
Intella            Common
 Interventional    shares
 Systems, Inc.
(formerly 
 Intelliwire, Inc.)             02/93      8,715         436     13,944        436      6,536
Intella            Series A
 Interventional    Preferred
 Systems, Inc.     shares 
(formerly
 Intelliwire, Inc.)             02/93      4,358       2,179      6,973      2,179      3,269
Molecular          Series B
 Geriatrics        Preferred
 Corporation       shares       09/93    250,000          --         --    125,000    125,000
Molecular          Common
 Geriatrics        shares
 Corporation                    01/96     23,585     125,000     47,170         --         --
Neurex Corporation Common
                   shares       09/96      3,379      70,959     53,304         --         --
Pharmos            Common
 Corporation       shares       04/95     60,331      45,248     85,791     45,248     88,083
Physiometrix,      Common
 Inc.              share
                   warrant
                   at $1,750;
                   expiring
                   06/97        06/92         16          --         --          0          0
Physiometrix,      Common       01/94-
 Inc.              shares       05/94        338          --         --    375,054      1,690
Physiometrix,      Series D
 Inc.              Preferred    01/94 &
                   shares       02/94    338,150          --         --    114,971  1,690,750
Physiometrix,      Common
 Inc.              shares       04/96    270,791     490,025  1,069,624         --         --
RedCell, Inc.      Series B
                   Preferred
                   shares       12/94    132,979     125,000    125,000    125,000    125,000
RedCell, Inc.      Series C
                   Preferred
                   share
                   warrant at 
                   an exercise 
                   price to be           $13,495
                   determined;           aggregate  
                   expiring              purchase
                   07/01        07/96    price             0          0         --         --
RedCell, Inc.      Convertible
                   note (1)     07/96    $89,966      93,369     93,369         --         --
SyStemix, Inc.     Common       1991-
                   shares       1992     115,173     771,504  1,761,801  1,013,068  2,069,867
SyStemix, Inc.     Common 
                   shares       09/96        660      10,352     10,096         --         --
SyStemix, Inc.     Common
                   shares       10/96      6,665     106,779    101,955         --         --

Microelectronics
----------------
Euphonix, Inc.     Common
                   shares       02/96      3,300      37,125     13,375         --         --
KOR Electronics    Series C
                   Convertible
                   Preferred
                   shares       11/89    177,778           0          0          0          0
KOR Electronics    Convertible
                   secured 
                   note (1)     11/89   $348,000          --         --    313,393    313,393
KOR Electronics    Series D
                   Preferred
                   shares       02/91  1,285,714           0          0          0          0
KOR Electronics    Common
                   shares       01/94    670,036           0          0          0          0
KOR Electronics    Series E
                   Preferred
                   shares       01/94  1,130,390   1,130,390    847,793  1,130,390    847,793
KOR Electronics    Series E
                   Preferred
                   share
                   warrant 
                   at $1.00;
                   expiring
                   01/98        01/94     55,000           0          0          0          0
KOR Electronics    Common share
                   warrant at
                   $.35;
                   expiring
                   08/99        08/94    257,143           0          0          0          0
KOR Electronics    Series D
                   Preferred
                   shares       07/95    977,142           0          0          0          0

Pharmaceuticals
---------------
Shaman             Common
 Pharmaceuticals   shares
 Inc.                           01/93    409,167     751,401  2,434,544  3,440,739  7,687,222
Shaman             Common
 Pharmaceuticals   shares
 Inc.                           02/95    340,833   1,363,332  2,027,956  1,363,332  2,147,248

Retail/Consumer Products
------------------------
Yes! Entertainment Common
 Corporation       shares       06/95     66,666     199,998    335,647    199,998    325,497

Venture Capital Limited Partnership Investments
-----------------------------------------------
El Dorado          Ltd.
 Ventures III      Partnership
                   interests  various   $225,000     187,460    240,661    149,960    189,689
Medical Science    Ltd.
 Partners          Partnership
                   interests  various   $500,000     366,266    640,593    437,225    601,028
Newtek Ventures II Ltd.
                   Partnership
                   interests  various   $773,764     483,924    657,123    423,924    473,368
Onset Enterprises  Ltd.
 Associates        Partnership
                   interests  various   $455,000           0    491,182    296,061    490,664
Utah Ventures      Ltd.
                   Partnership
                   interests  various   $250,000      41,123    271,757     41,123    187,708
                                                  ---------- ---------- ---------- ----------

Total equity investments                         $18,522,217 35,527,098 24,932,960 42,711,618
                                                 =========== ========== ========== ==========

--  No investment held at end of period.
 0  Investment active with a carrying value or fair value of zero.
(1) Convertible and subordinated notes include accrued interest.
    Interest rates on such notes range from 8% to 18%.
</TABLE>



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

At December 31, 1996 and 1995, marketable equity securities had 
aggregate costs of $5,552,176 and $9,362,396, respectively, and 
aggregate market values of $11,161,489 and $14,529,511, respectively.  
The net unrealized gains at December 31, 1996 and 1995, included gross 
gains of $6,140,674 and $6,130,033, respectively.

Biex, Inc.
----------

In April of 1996, the Partnership purchased an additional 83,333 
Series C Preferred shares for $83,333.  Then in August of 1996, the 
Partnership purchased 111,115 Series D Preferred shares for $166,673.  
The pricing of the Series D financing round, in which third parties 
participated, indicated an increase in the change in fair value of 
$232,828 for the Partnership's prior investments.

Cardiometrics, Inc.
-------------------

In December of 1996, the Partnership sold all of its holdings in the 
company for total proceeds of $1,628,147 and realized a loss of 
$1,037,603.

Coded Communications Corporation
--------------------------------

During the first quarter of 1996, the Managing General Partners 
determined that there had been an other than temporary decline in 
value of the Partnership's investment.  As a result, the investment 
was written down by $77,091.

In December of 1996, the Partnership sold all of its holdings in the 
company for total proceeds of $56,580 and realized a loss of $16,147.

CV Therapeutics, Inc.
---------------------

In March of 1996, the Partnership made an additional investment in the 
company by purchasing 31,722 Series G Preferred shares and a warrant 
for 47,583 common shares for a total cost of $63,444.

Then in November of 1996, the company completed its initial public 
offering ("IPO").  Prior to the IPO, the company effected a 1-for-10 
reverse stock split resulting in the Partnerships Preferred shares 
being converted into 34,422 common shares.  In addition, the 
Partnership exercised its common share warrant mentioned above without 
cash and received 3,271 shares of common stock and realized a loss 
upon exercise of $3,124.

At December 31, 1996, the Partnership recorded a decrease in the 
change in fair value of $506,305 to reflect the publicly-traded market 
price of its investments; a portion of the fair value was adjusted to 
reflect a discount for restricted securities.

Graham-Field Health Products, Inc. (formerly Everest & Jennings
---------------------------------------------------------------
International, Ltd.)
-------------------

In November of 1996, Everest & Jennings International, Ltd. (E&J) was 
acquired by Graham-Field Health Products, Inc. (GFI).  The 
Partnership's 592,720 E&J common shares were converted into 20,745 
common shares of GFI.  These shares were then sold in December of 1996 
for total proceeds of $179,135 and a realized loss of $458,384.  
$60,219 of the sales price was an unsettled trade at December 31, 
1996, and was included in "Other Assets" on the Balance Sheet.

KOR Electronics
---------------

In 1996, the company repaid in full the $348,000 convertible secured 
note receivable.

Molecular Geriatrics Corporation
--------------------------------

In January of 1996, the company converted its Series B Preferred 
shares into common shares and then effected a reverse stock split. 
Consequently, the Partnership's Series B investment became 23,585 
common shares.

In June of 1996, the company completed a Series C Preferred round of 
financing in which the Partnership did not participate.  The pricing 
of this round indicated that the fair value of the Partnership's 
investment had declined by $77,830.

Multiport, Inc.
---------------

In September of 1996, Multiport, Inc., ("Multiport"), which is wholly 
owned by the Partnership, purchased all of the Partnership's Velocity 
Incorporated ("Velocity") notes receivable and the related common 
share warrant for $900,000, and assumed the first $500,000 of the 
Partnership's $2,000,000 guarantee on Velocity's line of credit with a 
financial institution.  In October, 1996, Multiport paid the financial 
institution $500,000 and assumed the note.  See Note 10 for additional 
discussion.

Based on the fair value of Multiport's underlying net assets at 
December 31, 1996, the Partnership recorded a fair value decrease of 
$700,522 for its investments.  Multiport's assets consist of remaining 
net proceeds to be received from a 1994 asset sale agreement, cash and 
notes receivable from Velocity.

Naiad Technologies, Inc. (formerly TMC, Inc.)
---------------------------------------------

In July of 1996, the Partnership issued a $6,250 convertible note to 
the company.

Then in November of 1996, the Partnership purchased 62,602 Series B 
Preferred shares with $118,750 in cash and by converting the note 
discussed above including accrued interest of $204, for a total cost 
of $125,204.  The pricing of this round, in which third parties 
participated, indicated an increase in the change in fair value of 
$75,000 for the Partnership's existing investment.

NetChannel, Inc.
----------------

In October of 1996, the Partnership made an investment in the company 
by purchasing 136,363 Series B Preferred shares and a warrant to 
purchase 136,363 Series B Preferred shares for $149,999.

Physiometrix, Inc.
------------------

In April of 1996, the company completed its IPO.  Prior to the IPO, 
the company effected a reverse stock split resulting in the 
Partnership's common and Preferred shares being converted into 270,791 
common shares while the common share warrant was canceled.  At 
December 31, 1996, the Partnership recorded a decrease in the change 
in fair value of $622,816 to reflect the publicly-traded market price 
of its investments; the fair value was adjusted to reflect a discount 
for restricted securities.

Pinterra Corporation (formerly Terrapin, Inc.)
----------------------------------------------

During 1996, the Partnership issued an additional convertible note to 
the company, which was converted along with the Partnership's existing 
investments into equity securities.

The company ceased operations in late 1996.  Based on this development 
and the Managing General Partners' judgment, the Partnership sold its 
investment to KOR Electronics, another investee company, for a nominal 
amount and realized a loss of $533,607.

RedCell, Inc.
-------------

In July of 1996, the Partnership issued $89,966 in convertible notes 
receivable to the company.  The note bears interest at 8% and matures 
in October of 1997.

Reflection Technology, Inc.
---------------------------

During the first half of 1996, the Partnership issued $961,500 in 
convertible notes receivable to the company and received a warrant to 
purchase 359,750 common shares at $.50 per share.

In April of 1996, the Partnership purchased 486,943 Series J Preferred 
shares with $23,500 in cash and by converting the notes discussed 
above including accrued interest of $13,234, for a total cost of 
$998,234.  The Partnership's Series I Preferred shares were also 
exchanged for 60,975 Series J Preferred shares.

The pricing of the Series J Preferred round resulted in a $735,302 
decrease in the change in fair value of the Partnership's investments.

Shaman Pharmaceuticals, Inc.
----------------------------

During the first half of 1996, the Partnership sold 811,027 common 
shares of Shaman Pharmaceuticals, Inc., for total proceeds of 
$5,635,825 and realized a gain of $2,946,487.  The Partnership 
recorded a decrease in the change in fair value of $2,682,632.  The 
change included a decrease of approximately $2.4 million due to the 
sale mentioned above, as well as a decrease in market price for the 
remaining unrestricted shares.  

Subsequent to year end, the Partnership sold 111,400 common shares of 
the company for total proceeds of $528,416 and a realized gain of 
$81,713.  In addition , the fair value of the Partnership's remaining 
investment decreased by $1,165,445 as a result of a decrease in the 
publicly-traded market price at March 20, 1997.

SunPower Corporation
--------------------

During the fourth quarter of 1996, the company had a Series E 
Preferred financing round in which the Partnership did not 
participate.  The pricing of this round indicated an increase in the 
fair value of $1,734,569 for the Partnership's existing investment.  
Also in November of 1996, the Partnership's Series D Preferred share 
warrant expired without being exercised.

SyStemix, Inc.
--------------

In 1996, the Partnership sold 18,799 common shares of SyStemix, Inc., 
for total proceeds of $332,916 and a realized gain of $91,352.  In 
September and October of 1996, the Partnership purchased an additional 
7,325 common shares for $117,131.  The Partnership also recorded a 
decrease in the change in fair value of $71,582 at December 31, 1996, 
mainly due to the sale mentioned above.  Subsequent to year end the 
Partnership sold its remaining investments in the company for total 
proceeds of $2,356,657 and a realized gain of $1,468,022.

Thermatrix, Inc.
----------------

In June of 1996, the company completed its IPO.  Prior to the IPO, the 
company effected a reverse stock split resulting in the Partnership's 
common and Preferred shares being converted into 1,163,764 common 
shares.  Then in September of 1996, as disclosed in Note 3 to the 
financial statements, the Partnership distributed 57,917 common shares 
to the General Partners.  At December 31, 1996, the Partnership 
recorded a decrease in the change in fair value of $64,437 to reflect 
the publicly-traded market price of its remaining investments; the 
fair value of which was adjusted to reflect a discount for restricted 
securities.  

Subsequent to year end, the fair value of the Partnership's investment 
decreased by $3,204,448 as a result of a decrease in the publicly-
traded market price at March 20, 1997.

UT Starcom, Inc. (formerly Unitech Telecom, Inc.)
------------------------------------------------

During the fourth quarter of 1996, the company had a Series C 
Preferred financing round in which the Partnership did not 
participate.  The pricing of this round indicated an increase in the 
fair value of $912,299 for the Partnership's existing investment.

Velocity Incorporated
---------------------

During 1996, the Partnership issued $124,950 in subordinated notes to 
continue company operations and reclassified secured notes receivable 
of $640,000 to subordinated notes.  Subsequently in 1996, all of the 
Partnership's notes and related warrant in the company were acquired 
by Multiport, Inc., for $900,000.  See "Multiport, Inc." paragraph 
above for additional disclosure. 

During 1996, the Managing General Partners determined that there had 
been an other than temporary decline in value for the Partnership's 
preferred stock investment.  As a result, the Partnership wrote down 
its preferred stock investment by $1,000,000.  In December, 1996, the 
Partnership sold its preferred stock investment for a nominal amount 
and realized a loss on sale of $34,331.

VOIS, Inc.
----------

During the third quarter of 1996, the Partnership invested in the 
company by purchasing 250,000 Series A Preferred shares for $250,000.  
As a result of the above investment, an affiliate of the Managing 
General Partners received 300,000 common shares which were 
subsequently assigned to the Partnership.

Wire Networks, Inc.
-------------------

In February of 1996, the Partnership invested in the company by 
purchasing 6,098 Series A Preferred shares and 7,452 Series B 
Preferred shares for $8,232 and $16,767, respectively.

Then in November of 1996, the Partnership issued $101,973 in 
convertible notes to the company.

Venture Capital Limited Partnership Investments
-----------------------------------------------

The Partnership recorded a cost basis decrease of $269,520 in venture 
capital limited partnership investments during 1996.  The decrease was 
a result of returns of capital in the form of stock and cash 
distributions of $347,878 and $19,142, respectively, partially offset 
by additional contributions of $97,500.  The Partnership recorded a 
fair value increase of $358,859 as a result of a net increase in the 
fair value of the underlying investments, partially offset by the 
effects of the transactions described above.

During 1996, the common stock distributions consisted of Clarify, 
Inc., Conceptus, Inc., Euphonix, Inc., Inhale Therapeutic Systems, 
Inc., Mylex, Inc., and Neurex Corporation with a total fair value of 
$347,878.  These distributions represented returns of capital.  In 
addition, the Partnership received stock and cash distributions of 
$134,757 and $120,482, respectively, which are from profits and are 
recorded as net realized gain from venture capital limited partnership 
investments.  The stock distribution was for Sonus Pharmaceuticals, 
Inc.

In 1996, the Partnership sold its positions in Clarify, Inc., 
Conceptus, Inc., Mylex Inc., and Sonus Pharmaceuticals, Inc. for total 
proceeds of $291,757.

Other Equity Investments
------------------------

Other significant changes reflected above generally relate to market 
value fluctuations or the elimination of a discount relating to 
selling restrictions for publicly-traded portfolio companies.  The 
Partnership's Endocare, Inc., shares are restricted.  Yes! 
Entertainment Corporation and Pharmos Corporation are publicly traded 
companies. 

6.  Secured Notes Receivable, Net
    -----------------------------

At December 31, 1996 and 1995, secured notes receivable consisted of:

<TABLE>
<CAPTION>
                                              1996         1995
                                              ----         ----
<S>                                          <C>         <C>
Secured notes receivable                     $ 13,963     49,149
Accrued interest                               15,174     18,677
                                              -------    -------
  Total secured notes receivable, 
   net (fair value)                            29,137     67,826
                                              =======    =======
</TABLE>

Changes in the allowance for loan losses were as follows:

<TABLE>
<CAPTION>


                                             1996          1995
                                             ----          ----
<S>                                       <C>           <C>

Balance, beginning of year                $     --        49,000
                                           -------       -------

Decrease in provision
  for loan losses                               --      (149,000)

Recoveries of previous write offs:
  Computer systems and software                 --       100,000
                                           -------       -------

Change in net unrealized fair value of
  secured notes receivable                      --       (49,000)
                                           -------       -------

Balance, end of year                      $     --            --
                                           =======       =======

</TABLE>

The provision for loan losses is generally comprised of realized loan 
losses, net of recognized recoveries, and a change in net unrealized 
fair value based upon the level of loan loss reserves deemed adequate 
by the Managing General Partners at the respective year ends.

The interest rate on secured notes receivable at December 31, 1996, 
was 12.5%.

The principal balance of $13,963 is scheduled to be repaid in 1997.

7.  Cash and Cash Equivalents
    -------------------------

Cash and cash equivalents at December 31, 1996 and 1995, consisted of:


<TABLE>
<CAPTION>
                                             1996          1995
                                             ----          ----
<S>                                      <C>               <C>

Demand accounts                        $     1,713        105,621
Money-market and brokerage accounts      1,400,955        169,359
                                         ---------      ---------
  Total                                $ 1,402,668        274,980
                                         =========      =========
</TABLE>

8.  Short-Term Borrowings
    ---------------------

The Partnership has borrowing accounts with two financial 
institutions.  At December 31, 1996, the Partnership had no 
outstanding balance; the combined borrowing capacity, which fluctuates 
based on collateral value, totaled $3,139,048.  In 1996 and 1995, the 
combined weighted-average interest rates for the two accounts were 
7.12% and 8.82%, respectively.  Interest expense of $90,768 was 
recorded in 1996.  The Partnership's investments in Shaman 
Pharmaceuticals, Inc., and SyStemix, Inc., are pledged as collateral.  
As disclosed in Note 5 to the financial statements, subsequent to year 
end the Partnership sold its remaining investment in Systemix, Inc., 
and 111,400 common shares of Shaman Pharmaceuticals, Inc., which 
reduced the borrowing capacity to $971,772 at March 20, 1997.

9.   Promissory notes
     ----------------

The Partnership has a $1,363,332 promissory note to an unaffiliated 
third party, which matures in February of 1997.  This note is 
subordinated to the Partnership's short-term borrowings and is 
collateralized by Partnership assets.  The weighted-average interest 
rates for the years ended December 31, 1996 and 1995, were 7.99% and 
8.25%, respectively.  Interest expense of $123,245 was recorded in 
1996.  This note was fully repaid in February of 1997.

10.  Commitments and Contingencies
    ------------------------------

The Partnership is a party to financial instruments with off-balance-
sheet risk in the normal course of its business.  Generally, these 
instruments are commitments for future equity fundings, venture 
capital limited partnership investments, equipment financing 
commitments, or accounts receivable lines of credit that are 
outstanding but not currently fully utilized.  As they do not 
represent current outstanding balances, these unfunded commitments are 
properly not recognized in the financial statements.  At December 31, 
1996, the Partnership has unfunded commitments as follows:

<TABLE>
<CAPTION>

Type
----
<S>                                                 <C>

Equity investments                                  $  462,911
Venture capital limited partnership investments        156,150
Term notes                                             118,800
                                                     ---------

      Total                                         $  737,861
                                                     =========

</TABLE>

The Partnership uses the same credit policies in making these 
commitments and conditional obligations as it does for on-balance-
sheet instruments.  Commitments to extend financing are agreements to 
lend to a company as long as there are no violations of any conditions 
established in the contract.  The credit lines generally have fixed 
termination dates or other termination clauses.  Since many of the 
commitments are expected to expire without being fully drawn upon, the 
total commitment amounts do not necessarily represent future cash 
requirements. 

In September of 1995, the Partnership jointly guaranteed with two 
affiliated partnerships a $2,000,000 line of credit between a 
financial institution and a portfolio company in the computer systems 
and software industry of which the Partnership's share is $500,000.  
In October of 1996, the $2,000,000 guarantee mentioned above was 
reduced to $1,000,000 as Multiport, Inc., which is wholly owned by the 
Partnership, and an affiliated partnership assumed $1,000,000 of the 
financial institution's line of credit.  The Partnership remains a 
joint guarantor of the remaining $1,000,000.  If the portfolio company 
fails to repay the line of credit and the affiliated partnerships are 
unable to finance their portion of the guarantee, the Partnership may 
be liable up to the remaining guarantee amount.

<PAGE>
                              SIGNATURES
                              ----------

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

                         TECHNOLOGY FUNDING VENTURE PARTNERS IV,
                         AN AGGRESSIVE GROWTH FUND, L.P.

                         By:  TECHNOLOGY FUNDING INC.
                              Managing General Partner




Date:  March 21, 1997    By:       /s/Debbie A. Wong
                              ----------------------------------
                                 Debbie A. Wong
                                 Vice President and Controller

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

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

   /s/Charles R. Kokesh       President, Chief         March 21, 1997
------------------------      Executive Officer,
Charles R. Kokesh             Chief Financial Officer,
                              and Chairman of
                              Technology Funding Inc.
                              and Managing General
                              Partner of Technology
                              Funding Ltd.

   /s/Gregory T. George       Group Vice President     March 21, 1997
--------------------------    of Technology Funding
Gregory T. George             Inc. and a General
                              Partner of Technology
                              Funding Ltd.


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