SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q



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

                 For the nine month period ended - July 31, 1997

                                       OR

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

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


                         Commission file number 0-25312

                       STARTECH ENVIRONMENTAL CORPORATION
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

            
           Colorado                                              84-1286576
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                79 Old Ridgefield Road Wilton, Connecticut 06897
                -------------------------------------------------
                (Address of principal executive offices) Zip Code

                                  203/ 762-2499
               --------------------------------------------------
              (Registrant's telephone number, including area code)

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,  and (2) has been subject to such filing  requirements
for the past 90 days.

                                YES  X    NO
                                    ----    ----


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

 Title of each class                          Outstanding at September 10, 1997
 -------------------                          ---------------------------------

Common Stock - No Par                                     7,063,552


<PAGE>



                       STARTECH ENVIRONMENTAL CORPORATION


                                      INDEX

                                                                        PAGE NO.
                                                                        --------

PART I - FINANCIAL INFORMATION
------------------------------

Item 1.   Unaudited Financial Statements

             Balance Sheet - July 31, 1997 (unaudited)
             and October 31, 1996 (audited)                                3

             Statement of Operations for the quarters and nine months
             ended July 31, 1997 and 1996 ( unaudited)                     4

             Statement of Cash Flows for the nine months ended
             July 31, 1997 and 1996 (unaudited)                            5

             Statement of Cash Flows for the three months ended
             July 31, 1997 and 1996 (unaudited)                            6

             Notes to Financial Statements                                 7

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                             8-9

PART II - OTHER INFORMATION
---------------------------

             Item 1.  Legal Proceedings                                   10
             Item 2.  Changes in Securities                               10
             Item 3.  Defaults Upon Senior Securities                     11
             Item 4.  Submission of Matters to a Vote of
                      Security Holders                                    11
             Item 5.  Other Information                                   11
             Item 6.  Exhibits and Reports on Form 8-K                    11

SIGNATURE                                                                 12
---------                                                                 --

<PAGE>



                         PART I - FINANCIAL INFORMATION
                         ------------------------------

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

                       STARTECH ENVIRONMENTAL CORPORATION
                                  BALANCE SHEET

                                                       July 31,      October 31,
ASSETS                                                  1997            1996
                                                     -----------    -----------
Current Assets:
         Cash and cash equivalents                   $ 1,195,703    $   125,714

         Other current assets                             37,961         24,071

                  Total Current Assets                 1,233,664        149,785

         Other Assets                                    100,000        100,000
                                                     -----------    -----------

                  Total assets                       $ 1,333,664    $   249,785
                                                     ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
         Accounts payable                            $    20,393    $    21,176
         Accrued interest                                 16,500          8,250
         Investor deposits                               805,102
         Notes payable - short term                      100,000        100,000
         Other accrued expenses                           26,762

                  Total Current Liabilities              968,757        129,426

Stockholders' equity:
         Preferred stock, no par value
         10,000,000 shares authorized,
         no shares issued or outstanding

         Common stock, no par value,
         800,000,000 shares authorized;
         shares issued and outstanding:
         6,889,193 at July 31, 1997 and
         5,903,374 at July 31, 1996                    1,634,962        517,512

         Additional paid-in capital                          300            300

         Deficit accumulated during the
         development stage                            (1,270,355)      (397,453)

         Total Stockholders' Equity                      364,907        120,359

         Total liabilities and stockholder's equity  $ 1,333,664    $   249,785
                                                     ===========    ===========



                        See notes to financial statements


                                       3


<PAGE>
<TABLE>
<CAPTION>

                                         STARTECH ENVIRONMENTAL CORPORATION
                                         STATEMENT OF OPERATIONS (unaudited)

                                      Quarter Ended        Quarter Ended       Nine Months Ended    Nine Months Ended    
                                      July 31,1997         July 31,1996          July 31,1997        July 31, 1996
                                      ------------         ------------          ------------        -------------

<S>                                    <C>                  <C>                  <C>                  <C>        
Revenue                                $         0          $    16,000          $    10,000          $    26,000

LESS: Operating expenses
  Selling expense                           26,406                8,057               83,542               54,381
  General and Admin. exp                   188,982              113,174              506,106              328,351
                                       -----------          -----------          -----------          -----------

Total S,G&A                                215,388              121,231              589,648              382,732

Loss from operations                      (215,388)            (105,231)            (579,648)            (356,732)

Other income (expense):
  Interest income                            9,574                2,037               22,734                2,427
  Interest expense                          (1,500)              (2,250)              (6,000)              (6,750)

                                       -----------          -----------          -----------          ----------- 



  Total other income (expense)               8,074                 (213)              16,734               (4,323)

Income tax expense                             550

Net loss                               $  (207,314)         $  (105,444)         $  (583,464)         $  (361,055)
                                       ===========          ===========          ===========          ===========


Net loss per share                     $      (.03)         $      (.02)         $      (.09)         $      (.07)
                                       ===========          ===========          ===========          ===========


Average common
shares outstanding                       6,889,193            5,794,700            6,859,256            5,345,650
                                       ===========          ===========          ===========          ===========
</TABLE>


                                         See notes to financial statement.

                                                         4

<PAGE>
<TABLE>
<CAPTION>


                            STARTECH ENVIRONMENTAL CORPORATION
                            STATEMENT OF CASH FLOWS (unaudited)

                                                           Nine Months Ended       Nine Months Ended
                                                             July 31, 1997           July 31, 1996
                                                             -------------           -------------


<S>                                                         <C>                       <C>   
Cash flows from operating activities:
Net loss                                                     $  (563,464)              $  (361,055)

(Increase) decrease in current assets:                           (27,110)                  (24,071)

Increase (decrease) in current liabilities:
Accounts payable                                                  (7,012)                    1,253
Accrued expenses                                                   6,000                     6,750
                                                             -----------               -----------



    Net cash used in operating activities                       (591,586)                 (377,123)
                                                             -----------               -----------


Cash Flows from financing activities:
    Subscriptions to common stock                                525,102
    Proceeds from issuances of
     common stock, net                                           981,418                   417,812
                                                             -----------               -----------

Net cash provided from financing activities                    1,506,520                   417,812
                                                             -----------               -----------

Net decrease in cash and cash equivalents                        914,934                    40,689

Cash and cash equivalents at beginning
 of period                                                       280,769                    85,025

Cash and cash equivalents at end of period                   $ 1,195,703               $   125,714




Supplemental disclosure of cash flow information:
Cash paid during the period for interest                     $         0               $         0

Issuance of common stock for vendor advance                  $         0               $   100,000








                             See notes to financial statements


                                            5

<PAGE>



                       STARTECH ENVIRONMENTAL CORPORATION
                       STATEMENT OF CASH FLOWS (unaudited)

                                                          Three Months Ended        Three Months Ended
                                                            July 31, 1997             July 31, 1996
                                                            -------------             -------------

Cash flows from operating activities:
Net loss                                                    $  (207,314)              $  (105,444)

(Increase) decrease in current assets:                           (5,300)                  (19,350)

Increase (decrease) in current liabilities:
Accounts payable                                                 11,193                       133
Accrued expenses                                                 (4,500)                    2,250

                                                            -----------               -----------



    Net cash used in operating activities                      (205,921)                 (122,411)

                                                            -----------               ----------- 


Cash Flows from financing activities:
    Subscriptions to Common Stock                               105,000
    Proceeds from issuance of common stock, net                   7,990

    Net cash provided from financing activities                 112,990                     8,374
                                                           ------------               -----------

Net decrease in cash and cash equivalents                        92,931                   114,064

Cash and cash equivalents at beginning
 of period                                                    1,288,634                   239,778

Cash and cash equivalents at end of period                  $ 1,195,703               $   125,714



Supplemental disclosure of cash flow information:
Cash paid during the period for interest                    $         0               $         0

Issuance of common stock for vendor advance                 $         0               $   100,000






                             See notes to financial statements

                                            6
</TABLE>


<PAGE>



                       STARTECH ENVIRONMENTAL CORPORATION
                          NOTES TO FINANCIAL STATEMENTS



Note 1. Basis of Presentation

STARTECH   Environmental   Coloration   (the   "Company")   is  engaged  in  the
commercialization   and  continued   development  of  an  innovative  processing
technology for recycling industrial wastes.

Net loss per share is determined  by dividing net loss by the average  number of
common shares  outstanding during the period.  Common share  equivalents,  which
consist of stock  which may be  issuable  upon  exercise  of  outstanding  stock
options or warrants, have been excluded from the average number of common shares
since their effect is anti-dilutive.

Certain  reclassifications  have  been  made for  consistent  presentation.  The
reclassifications  have no effect on the net loss for the period  ended July 31,
1997.

The information furnished is unaudited and reflects all adjustments  (consisting
of only normal recurring and insignificant adjustments) which, in the opinion of
management,  are necessary for a fair presentation of the financial position and
results of  operations  for the  interim  periods.  The  accompanying  financial
statements should be read in conjunction with the Company's financial statements
and related  footnotes for the year ended October 31, 1996 which are included in
the Company's annual report on form 10-K. The results of operations for the nine
months  ended  July 31,  1997 do not  necessarily  indicate  the  results  to be
expected for the full year.


Note 2.  Equity Transactions

During  the  quarter  ended  July 31,  1997,  the  second  phase of the  Private
Placement  of August 28, 1996 was  closed.  The total  investment  in the second
phase of the Private Placement was $835,513 representing 119,359 shares at seven
dollars  ($7.00) per share.  All the  investors  in the Private  Placement  were
informed in the investment  memorandum that, regardless of securities law, their
shares are restricted for a period of two (2) years;  unless relevant securities
law(s) are changed to require for a longer extension.



 
                                      7


<PAGE>



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



Results of Operations
---------------------
1997 vs 1996
------------

For the first nine  months of 1997 the Company  earned  $10,000 and for the same
period in 1996 the Company earned $26,000 in revenue for professional  services.
Operating expenses were $215,388 in the quarter ended July 31, 1997 and $589,648
for nine months ended July 31, 1997  compared  with  $121,231 in the quarter and
$382,732  for the nine months a year ago. The nature of the  operating  expenses
continue  to  be   primarily   for  selling,   demonstration   and  general  and
administrative purposes.

The Registrant was  incorporated  under the laws of the State of Colorado in May
1991 and has been dormant since 1991. During fiscal 1995, the Registrant entered
into negotiations with Startech Corporation  ("Startech")which culminated in the
acquisition of Startech on November 17, 1995.


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

Liquidity has been provided by sales,  stock sales,  advances from investors and
majority shareholders or notes payable to other third parties. The Registrant is
and will continue to be dependent upon sales, loans and/or capital contributions
from  shareholders  or outside  investors and the  distribution of S-8 shares to
vendors  for the  payment of goods and  services.  The payment to vendors in the
form of S-8 shares  reduces the cash  outlay of the  company.  The  Registrant's
capital resource  requirements for future periods will increase and future needs
are anticipated to be met from operations of the Registrant's business activity.


Background
----------

The Registrant's activities during the past three fiscal years (November 1, 1992
to November 16, 1995) consisted  primarily of  investigating  possible  business
opportunities.

On November 17, 1995, the Company completed the acquisition of all of the issued
and outstanding  shares of common stock of Startech  Corporation,  a corporation
organized  under  the  laws  of  the  State  of  Connecticut   which  engineers,
manufacturers and markets Plasma Waste  ConverterTM  ("PWC") systems to recover,
recycle, reduce and remediate hazardous and nonhazardous waste materials.



                                       8
<PAGE>



On November 18, 1995, the Board of Directors of the Company unanimously approved
a change of  business  purpose of the Company  from one  seeking an  acquisition
candidate  to one  engaged  in the  business  of  manufacturing  equipment  that
recovers,  recycles,  reduces and remediates  hazardous and  nonhazardous  waste
materials.


General
-------

Startech   is  an   environmental   technology   corporation   engaged   in  the
commercialization  and  continued  development  of its Plasma Waste  ConverterTM
("PWC") systems for the recycling,  resource recovery, reduction and remediation
of  hazardous  and  nonhazardous  organic  and  inorganic  materials  and wastes
including radioactive wastes.

The Startech  Plasma  Waste  Converter is a  closed-loop  recycling  system that
converts  materials  formerly regarded as hazardous wastes into useful commodity
products.  The hazardous  waste can be organic and  inorganic,  in the form of a
gas,  liquid,  and solids or any combination  thereof.  Waste volume  reductions
higher than 300 to 1 have been  demonstrated.  Depending on the waste processed,
the principal  commodities produced by the system are a synthetic gas called PCG
(Plasma Converted Gas)TM, metals, and an obsidian-like inert silicate stone. The
PCG can be used as a chemical  feed stock to produce  polymers  and other common
industrial products, as a fuel to produce electricity, as a fuel source for fuel
cells,  as a heating plant fuel to reduce the cost and reliance on fossil fuels,
and in  desalinization  applications  to produce fresh water for  irrigation and
drinking.  The metals can be employed in the metallurgical  industry.  The stone
silicates  can  be  employed  in the  abrasives  industry,  and as an  aggregate
material for construction industry applications.





                                       9


<PAGE>


                           PART II - OTHER INFORMATION
                           ---------------------------



ITEM 1. LEGAL PROCEEDINGS.


The company is a defendant in litigation  brought in Denver,  Colorado  District
Court by Delphina,  Ltd. in January 1997. The complaint demands the removal of a
restrictive  legend on shares purchased by Delphina,  Ltd. in 1995 and 1996. The
company has moved the matter to the Federal Courts from the District of Colorado
and Delphina,  Ltd. has moved to remand.  Out of court negotiations are in their
final  stages and it appears  likely that an amicable  settlement  is near.  The
company  does not  believe  there is any merit to the claim and will  vigorously
contest  the matter if an out of court  settlement  cannot be agreed upon by the
parties.

The  company  is a  defendant  in  litigation  brought in the  Ontario  Court of
Justice, Ontario, Canada, and was served notification of the complaint in August
1997.  The  complaint  is a result of a third  party  action  against one of the
company's  shareholders.  The third party, a stock  brokerage,  failed to follow
standard  practice to verify a  restrictive  legend on the  shareholder's  stock
certificate;  thus sold the shares and had to purchase them back at a loss.  The
brokerage firm is seeking  retribution for the loss from the shareholder and the
shareholder is seeking indemnification and/or contribution from the company. The
proceedings are in their preliminary  stages. The company does not believe there
is any merit to the claim and will vigorously contest the matter.

No legal proceedings are known to be contemplated by governmental authorities.


ITEM 2.  CHANGE IN SECURITIES.


No  constituent  instruments  defining the rights of the holders of any class of
registered securities of the Registrant have been materially modified. No rights
evidenced by any class of registered  securities have been materially limited or
qualified  by the  issuance or  modification  of any other class of  securities.
There are no working capital  restrictions or other limitations upon the payment
of dividends except as reported in the Registrant's FORM 10.




                                       10

<PAGE>



ITEM 3. DEFAULTS UPON SENIOR SECURITIES.


There have been no defaults in the payment of principal  interest,  a sinking or
purchase fund  installments,  or any other default not cured within thirty days,
with respect to any  indebtedness  of the  Registrant or any of its  significant
subsidiaries  exceeding  five percent (5%) of the total assets of the Registrant
and its consolidated subsidiaries.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.


No  matters  were  submitted  during the first  nine  months of the fiscal  year
covered by this report to a vote of security holders.

ITEM 5. OTHER INFORMATION.


None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.


          (a)  Exhibits.

               None


          (b)  Reports.

               No reports on Form 8-K were filed for the quarter  ended July 31,
               1997.







                                       11

<PAGE>






                                    SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1933, as amended,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                            STARTECH ENVIRONMENTAL CORPORATION
                                            ----------------------------------



Date:  September 15, 1997           By:     /S/ John D. Watts
       ------------------                   ------------------------------------
                                            John D. Watts
                                            Executive Vice President of Finance
                                            and Administration







                                       12