UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.  20549

                                  FORM 10-QSB
                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

For Quarter Ended             March 31, 2001
-------------------------------------------------------------------------------

Commission File Number            0-30652
-------------------------------------------------------------------------------

                             VIDEOPROPULSION, INC.
-------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

               Wisconsin                             39-1976286
-------------------------------------------------------------------------------
   (State or other jurisdiction of       (IRS Employer Identification Number)
    incorporation or organization)

                  251 Info Highway, Slinger, Wisconsin  53086
-------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                (262)  644-1000
-------------------------------------------------------------------------------
                (Issuer's telephone number, including area code)


-------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
 report)

State the number of shares outstanding of each of the issuers' classes of
common stock as of the latest practicable date.

                18,344,048  Shares, Common Stock, $.01 Par Value
------------------------------------------------------------------------------
Transitional Small Business Disclosure Format (Check one):  Yes [ ]   No [X]

                             VIDEOPROPULSION, INC.

                                  FORM 10-QSB

                        For Quarter Ended March 31, 2001

                                     INDEX

                                                                      Page No.

PART I - FINANCIAL INFORMATION

     Item 1 - Financial Statements
                Condensed Balance Sheets  . . . . . . . . . . .        3 - 4
                Statements of Operations  . . . . . . . . . . .        5
                Condensed Statements of Cash Flows  . . . . . .        6 - 7
                Notes to Unaudited Financial Statements   . . .        8 - 9

     Item 2 - Management's Discussion and Analysis of Financial
                Condition and Results of Operations . . . . . .       10 - 13

PART II - OTHER INFORMATION

     Item 2 - Changes in Securities . . . . . . . . . . . . . .        14

     Signature. . . . . . . . . . . . . . . . . . . . . . . . .        14

                         PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

                             VIDEOPROPULSION, INC.
                            CONDENSED BALANCE SHEETS

                                ASSETS         (Unaudited)       (Audited)
                                                ----------       ----------
                                                 March 31,      December 31,
                                                    2001            2000
                                                ----------       ----------
CURRENT ASSETS:
  Cash . . . . . . . . . . . . . . . . . . .    $   6,557        $  13,964
  Accounts Receivable  . . . . . . . . . . .       24,562           11,495
  Advances to Employees  . . . . . . . . . .       12,966                -
  Inventories. . . . . . . . . . . . . . . .      121,893          132,177
  Prepaid Expenses . . . . . . . . . . . . .       10,310            6,167
                                                ---------        ---------
     Total Current Assets. . . . . . . . . .      176,288          163,803

PROPERTY AND EQUIPMENT, at cost
  Machinery and Equipment  . . . . . . . . .       17,526           12,511
  Less - Accumulated Depreciation. . . . . .       (2,560)          (1,683)
                                                ---------        ---------
     Net Property, Plant and Equipment . . .       14,966           10,828
                                                ---------        ---------
     Total Assets. . . . . . . . . . . . . .    $ 191,254        $ 174,631
                                                ---------        ---------
                                                ---------        ---------

                             VIDEOPROPULSION, INC.
                            CONDENSED BALANCE SHEETS

                                                 (Unaudited)        (Audited)
                                                 -----------       -----------
                                                  March 31,        December 31,
                                                     2001             2000
                                                 -----------       -----------

LIABILITIES AND SHAREHOLDERS' INVESTMENT

CURRENT LIABILITIES:
  Accounts Payable - Trade . . . . . . . . . .    $  77,695        $  63,051
  Accounts Payable - GENROCO, Inc. . . . . . .      221,882          188,532
  Accrued Payroll and Payroll Taxes  . . . . .       15,758           29,094
  Other Accrued Liabilities  . . . . . . . . .       79,697           56,792
  Due to Related Party . . . . . . . . . . . .      479,325          180,000
                                                  ---------        ---------
        Total current liabilities. . . . . . .      874,357          517,469

  Due to Related Party . . . . . . . . . . . .       91,899          345,361
                                                  ---------        ---------
        Total liabilities. . . . . . . . . . .      995,296          862,830

 SHAREHOLDERS' INVESTMENT:
  Common Stock, $.01 par value, 24,900,000 shares
     authorized, 18,344,048 issued and outstanding
     on March 31, 2001 and 18,534,448 issued and
     outstanding on December 31, 2000. . . . .      183,440          185,344
  Additional paid-in capital . . . . . . . . .      194,258          192,354
  Unearned Compensation . . . . .. . . . . . .     (566,405)        (689,685)
  Retained Deficit . . . . . . . . . . . . . .     (586,295)        (376,212)
                                                  ---------        ---------
     Total shareholders' investment. . . . . .     (775,002)        (688,199)
                                                  ---------        ---------
     Total liabilities and
       shareholders' investment. . . . . . . .    $ 191,254        $ 174,631
                                                  ---------        ---------
                                                  ---------        ---------

See accompanying notes.

                               VIDEOPROPULSION, INC.
                             STATEMENTS OF OPERATIONS

                                                              (Unaudited)
                                                         ----------------------
                                                           Three Months Ended
                                                               March 31,
                                                         ----------------------
                                                           2001          2000
                                                         --------      --------
     NET SALES . . . . . . . . . . . . . . . . . . .    $  63,669     $ 124,075

     COST OF GOODS SOLD. . . . . . . . . . . . . . .       19,948        33,389
                                                        ---------     ---------
        Gross Profit . . . . . . . . . . . . . . . .       43,721        90,686

    OPERATING EXPENSES:
        Engineering. . . . . . . . . . . . . . . . .      129,853        94,197
        Selling and Administrative . . . . . . . . .      122,656       195,146
                                                        ---------     ---------
                                                          252,509       289,343
                                                        ---------     ---------
     Loss from Operations. . . . . . . . . . . . . .     (208,788)     (198,657)

       Interest Expense. . . . . . . . . . . . . . .          100         3,698
       Interest Income . . . . . . . . . . . . . . .          100             -
       Other Non-Operating Expenses. . . . . . . . .        1,295         3,974
                                                        ---------     ---------
     LOSS BEFORE TAXES . . . . . . . . . . . . . . .     (210,083)     (206,329)

       Benefit (Provision)-Income Taxes. . . . . . .            -             -
                                                        ---------     ---------

     NET LOSS. . . . . . . . . . . . . . . . . . . .    $(210,083)    $(206,329)
                                                        ---------     ---------
                                                        ---------     ---------
     BASIC AND FULLY DILUTED
        LOSS PER SHARE . . . . . . . . . . . . . . .    $    (.01)    $  (51.58)
                                                        ---------     ---------
                                                        ---------     ---------
     Average number of
      shares outstanding . . . . . . . . . . . . . .   18,532,332         4,000
                                                       ----------     ---------
                                                       ----------     ---------
     Average number of
      shares - Assuming dilution . . . . . . . . . .   18,532,332         4,000
                                                       ----------     ---------
                                                       ----------      ---------

See accompanying notes.

                               VIDEOPROPULSION, INC.
                        CONDENSED STATEMENTS OF CASH FLOWS

                                                            (Unaudited)
                                                   ----------------------------
                                                   Three Months Ended March 31,
                                                      2001              2000
                                                    --------          --------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss from continuing operations . . . . . .  $(210,083)        $(206,329)
  Adjustments to reconcile net income to net
    cash provided by (used in) operating activities:
     Depreciation, amortization and
       deferred income taxes. . . . . . . . . . .        877                 -
     Compensation expense due to forgiveness of
       notes receivable related to sale of
       GENROCO stock to employees . . . . . . . .     94,242                 -
  Change in assets and liabilities:
       Current assets, other than cash  . . . . .    (19,892)          (79,381)
       Current liabilities, other
         than notes payable . . . . . . . . . . .     23,538           179,793
                                                   ---------         ---------
           Net cash used in operating activities.   (111,318)         (105,917)

CASH FLOWS FROM INVESTING ACTIVITIES:
dditions to property, plant and equipment,
 net of retirements . . . . . . . . . . . . . . .     (5,015)                -
                                                   ---------         ---------
 Net cash used in investing activities. . . . . .     (5,015)                -

CASH FLOWS FROM FINANCING ACTIVITIES:

  Proceeds From Note Payable From Shareholder . .    300,000                 -
  Capital Contribution From Parent. . . . . . . .          -           200,000
  (Decrease) Increase in Funding
     From Related Party . . . . . . . . . . . . .   (191,074)                -
                                                   ---------         ---------
     Net cash generated by financing activities .    108,926           200,000
                                                   ---------         ---------
  Net (decrease) increase in cash
     and cash equivalents . . . . . . . . . . . .     (7,407)           94,083
  Cash and cash equivalents at
     beginning of period  . . . . . . . . . . . .     13,964             9,947
                                                   ---------         ---------
  Cash and cash equivalents at end of period  . .  $   6,557         $ 104,030
                                                   ---------         ---------
                                                   ---------         ---------

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
                                                            (Unaudited)
                                                             March 31,
                                                       ---------------------
                                                         2001         2000
                                                       --------     --------
Cash paid during year for:
     Interest. . . . . . . . . . . . . . . . . . .      $  100       $    -
                                                        ------       ------
                                                        ------       ------

     Income taxes. . . . . . . . . . . . . . . . .      $    -       $    -
                                                        ------       ------
                                                        ------       ------

See accompanying notes.

                             VIDEOPROPULSION, INC.
                    NOTES TO UNAUDITED FINANCIAL STATEMENTS
                                 March 31, 2001

1.  BASIS OF PRESENTATION

The condensed financial statements of  VideoPropulsion, Inc. ("VDOP") have  been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission.

The historical share data in this report has been adjusted to reflect the effect
of the 4-for-1 stock split on July 3, 2000.

Certain information  and footnote  disclosures  normally included  in  financial
statements,  prepared   in  accordance   with  generally   accepted   accounting
principles,  have  been  condensed  or  omitted  pursuant  to  such  rules   and
regulations, and as such, the Company believes that the disclosures are adequate
to make the information presented not  misleading.  The results for the  quarter
ended March 31, 2001 may not be indicative  of the results for the entire  year.
It is  suggested these  statements be  read in  conjunction with  the  financial
statements and the notes thereto included  in the Company's Form 10-KSB for  the
Company's year ended December 31, 2000.

2. GOING CONCERN

The Company continues to generate negative cash flows from operations.   Current
forecasts indicate that the Company may  be unable to fund current plans  beyond
the second quarter of fiscal 2001 unless it is able to raise additional capital.
The Company currently owes $313,781 to  GENROCO for interim operational  funding
and reimbursement to GENROCO for compensation expense relating to GENROCO  stock
purchase plans  granted to  VDOP employees.   There  can be  no assurances  that
GENROCO or existing shareholders will continue to fund or have the resources  to
fund the Company's operations in this manner.

The Company has  $479,325 outstanding  at March  31, 2001,  due on  demand to  a
related party, director and shareholder.

The Company is considered a development stage company.  A market for the
Company's products may not develop.  The Company's growth will be limited if DVB
technology and solutions do not become widely accepted.  The Company's
development efforts are focused on the DVB market, which has only begun to
develop and is rapidly evolving.

The Company believes that the combination of current existing cash and the
Company's ability to obtain additional long-term indebtedness is not adequate to
finance the Company's operations for the current activities and foreseeable
future.  As a result, the Company does not have adequate cash to meet current
obligations and is currently delinquent in payments to its vendors and service
providers.  Management is currently seeking to raise additional capital either
through a private placement or an offering of VDOP stock.  To date, no
additional capital has been raised and in light of economic conditions will be
difficult.

If the Company is not successful in raising additional capital, the Company will
not be able to continue its current operations and there is substantial doubt as
to the Company's ability to continue as a going concern.  There can be no
assurance that the Company will be successful in raising such capital at all or
on terms commercially acceptable to the Company or shareholders.  The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

3.  INVENTORIES

Cost of the Company's inventory is  determined using the average cost  first-in,
first-out (FIFO) inventory  valuation method.   The  distribution between  major
classes of inventories is as follows:

                                               (Unaudited)        (Audited)
                                              March 31, 2001   December 31,2000
                                              --------------   ----------------
       Raw Materials and Work-in-Process .       $ 30,094          $ 54,503
       Finished Goods. . . . . . . . . . .         91,799            77,674
                                                 --------          --------
                                                 $121,893          $132,177
                                                 --------          --------
                                                 --------          --------

4.  DISTRIBUTION OF SUBSIDIARY

In August of 1999, the board of directors of GENROCO, Inc. (VDOP's former parent
corporation) began contemplating the spin-off and distribution of the  Company's
Digital Video  Broadcast  (DVB) business  as  a  separate company  to  be  named
VideoPropulsion, Inc.  The Company executed the distribution on July 10, 2000 by
issuing one new share of VideoPropulsion  Inc. stock, for each share of  Company
stock held by GENROCO  shareholders of record,  as of the  close of business  on
June 30, 2000.

Complete  details   are  available   in  the   amended  SEC   Form  10SB/A   for
VideoPropulsion Inc., which was filed with the  SEC on June 19, 2000 and  mailed
to each shareholder, as an information statement, on June 20, 2000.

For additional  information, see  GENROCO Inc.'s  SEC Form  10-QSB for  the  six
months ended June 30, 2000, as filed with the SEC on August 14, 2000.

5.SHAREHOLDERS' EQUITY

In July 2000, VideoPropulsion declared a 4-for-1 stock split as of July 3,  2000
with a distribution date of July 13, 2000.  As a result, shareholders of  record
as of July 3, 2000 received 13,900,836 new shares to bring the total outstanding
amount to 18,534,448.

In March 2001, the Company acquired treasury shares of 190,400 common shares  of
VDOP.  The treasury shares were immediately cancelled.

6. SUBSEQUENT EVENTS

The Company is currently in preliminary negotiations with GENROCO regarding  the
potential merger of the two  entities.  To date  no written documents have  been
drafted but  management  believes it  better  to  merge with  GENROCO  and  have
combined companies, each  with immediate cash  needs, strive  to raise  capital.
The Board  has not  yet met  to  address the  possible  merger or  reviewed  any
documents, but is in preliminary discussions.   There can be no assurances  that
the impact of this on VDOP will be sufficient to maintain operations.

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

RESULTS OF OPERATIONS
---------------------

Net sales for the Company for the three  months ended March 31, 2001   ("2001"),
were $63,669 compared  to $124,075  for the three  months ended  March 31,  2000
("2000"). The  decrease  is a  refection  of  the overall  sluggishness  in  the
electronic industry during  the past twelve  months.  The  Company continues  to
rely on an existing customer base, most of whom are engaged in their own  unique
product evaluation and development programs for new products that they intend to
sell into  the  digital video  market.  By  placing its  hardware  and  software
products with key  players in the  emerging digital  video industry,  management
believes the Company will seek to obtain significant future sales  opportunities
as this technology becomes mainstream in the market place.

Cost of  goods sold  for the  three months  ended March  31, 2001  was  $19,948,
compared to $33,389 for the  three months ended March  31, 2000.  This  expense,
which was comprised of parts and labor associated with production and testing of
circuit boards shipped to customers, decreased as sales decreased.

Gross profit for the three months ended  March 31, 2001 was $43,721 compared  to
$90,686 for the  three months ended  March 31, 2000.  This decrease is  directly
related to the reduction in sales.

The resulting gross margin percentages were 68.7% and 73.1% for the three months
ended March  31, 2001  and March  31, 2000,  respectively.   These gross  margin
percentages may not  be indicative of  future performance  as anticipated  price
reductions due to increased competition and  volume discount pricing may  effect
future gross margin percentages.

Research and development expenses for the three months ended March 31, 2001 were
$129,853 compared  to $94,197  for the  three months  ended March  31, 2000,  or
204.0% and 75.9% of net sales for 2001 and 2000 respectively.  The increases are
primarily associated  with  new  product development  and  additional  personnel
costs.  As of March 31, 2001, the Company had eight employees, five of whom were
involved with the Company's engineering effort.

Selling, marketing, customer service and general and administrative expenses for
the three months ended March 31, 2001 were $122,656 compared to $195,146 for the
three months ended March 31, 2000 or 192.6% and 157.3% of net sales for 2001 and
2000, respectively. The decrease is primarily associated with reduced payroll
costs in an effort to reduce operating costs.Loss from operations for the three
months ended March 31, 2001 was $208,788 compared to a loss of $198,657 for the
three months ended March 31, 2000.

Net loss for the three months  ended March 31, 2001  was $210,083 compared to  a
loss of $206,329 for the three months ended March 31, 2000.

LIQUIDITY AND CAPITAL RESOURCES

The Company's  cash position  at March  31,  2001 was  $6,557, a  decrease  from
$13,964 at December  31, 2000. The  Company received interim  funding from  Carl
Pick, a director and shareholder, for $300,000 in February 2001.

During the  three  months ended  March  31, 2001,  net  cash used  in  operating
activities was $111,318  versus $105,917  net cash  used by  operations for  the
three months ended March 31, 2000.

Cash flows used  in investing activities  for the three  months ended March  31,
2001 was $5,015 relating  to the acquisition of  computer equipment versus  zero
for the three months ended March 31, 2000.

Cash flows from financing activities for  the three months ended March 31,  2001
were $108,926 from  loans from shareholders  and interim  funding from  GENROCO,
versus $200,000 of capital  contributions for the three  months ended March  31,
2000.

Stockholders' equity decreased by $86,803 to  $(775,002) at March 31, 2001  from
$(688,199) at December 31, 2000.

The Company's ratio of current assets to current liabilities (current ratio) was
 .20 to 1 at March 31, 2001 versus .32 to 1 at December 31, 2000. The Company has
been unable  to remain  current with  short-term obligations  due to  cash  flow
constraints.   The Company  has relied  solely on  funding made  available  from
GENROCO or  existing  shareholders.   The  Company  received a  demand  loan  of
$300,000 from a  shareholder in February  2001 to  cover short-term  operational
funding. There can be no assurances  that GENROCO or existing shareholders  will
continue to fund or have the resources to fund the Company's operations in  this
manner.

The Company continues to generate negative cash flows from operations.   Current
forecasts indicate that the Company may  be unable to fund current plans  beyond
the second quarter of fiscal 2001 unless it is able to raise additional capital.
The Company currently owes $313,781 to  GENROCO for interim operational  funding
and reimbursement to GENROCO for compensation expense relating to GENROCO  stock
purchase plans granted to VDOP employees.  The Company has $479,325  outstanding
at March 31, 2001, due on demand to a shareholder and director.

The Company  is  considered a  development  stage company.    A market  for  the
Company's products may  not develop.   The Company's growth  will be limited  if
Digital Video Broadcast ("DVB")  technology and solutions  do not become  widely
accepted.  The  Company's development  efforts are  focused on  the DVB  market,
which has only begun to develop and is rapidly evolving.

The Company  believes that  the combination  of current  existing cash  and  the
Company's ability to obtain additional  long-term indebtedness is not  currently
adequate to  finance the  Company's operations  for the  current activities  and
foreseeable future.  As  a result, the  Company does not  have adequate cash  to
meet current  obligations and  is  delinquent in  payments  to its  vendors  and
service providers.  Management is currently seeking to raise additional  capital
either through a private placement or  an offering of VDOP  stock.  To date,  no
additional capital has been raised and  prospects are difficult in light of  the
technology industry's downturn in general.

If the Company is not successful in raising additional capital, the Company will
not be able to continue its current operations and there is substantial doubt as
to the  Company's ability  to continue  as a  going concern.   There  can be  no
assurance that the Company will be successful in raising such capital at all  or
on terms commercially acceptable to the Company or the current shareholders.

No events occurred which required the Company to file an SEC Form 8-K.

CAUTIONARY STATEMENT
--------------------

With the exception of historical facts,  the statements contained in Item 2.  of
this Form 10-QSB may  be forward looking statements.   Statements in the  future
tense and  statements including  the words  "anticipate," "believe,"  continue,"
"estimate,"  "expect,"  "goal,"  "objective,"   "outlook,"  and  other   similar
expressions are intended to  identify forward looking  statements.  The  forward
looking  statements  in  this  10-Q  involve  certain  assumptions,  risks   and
uncertainties, many of which are beyond the Company's control, that could  cause
our actual results and performance to differ.  These factors are not limited to,
but certainly include: 1) cyclical downturns  affecting the markets for  capital
goods; 2) substantial increases  in interest rates that  impact the cost of  the
Company's outstanding debt; 3) the success of management in increasing sales and
maintaining or  improving  the  operating margins  of  its  businesses;  4)  the
availability of or material  increases in the costs  of select raw materials  or
parts; and  5) actions  taken by  competitors.   Investors are  directed to  the
Company's documents, such as its initial  filing on Form 10-SB/A filed with  the
Securities and Exchange Commission and the annual reports on Form 10-KSB.

                          PART II - OTHER INFORMATION

Item 2 - Change in Securities
         --------------------

None.

SIGNATURE

Pursuant to  the  requirements 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.

                  VIDEOPROPULSION, INC.
                  (Small Business Issuer)


                  /s/ Carl A. Pick
                  ----------------------------------
                  Carl A. Pick
                  Chairman and Director


                  /s/ Barbara R. Pick
                  ----------------------------------
                  Barbara R. Pick
                  CEO and Director


                  /S/ Brad Powers
                  ----------------------------------
                  Brad Powers
                  Financial Manager

DATE:  May 15, 2001