<PAGE>
                             UNITED STATES
                   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 quarterly period ended September 30, 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. 814-124

                TECHNOLOGY FUNDING MEDICAL PARTNERS I, L.P.
                -------------------------------------------
            (Exact name of Registrant as specified in its charter)

          Delaware                            94-3166762
-------------------------------     ---------------------------------
(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)

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   
                                                             ---   ---

No active market for the units of limited partnership interests 
("Units") exists, and therefore the market value of such Units cannot be 
determined.

<PAGE>

I.       FINANCIAL INFORMATION

Item 1.  Financial Statements

BALANCE SHEETS
--------------
<TABLE>
<CAPTION>
                                      (unaudited)
                                     September 30,      December 31,
                                         1996              1995
                                    --------------      ------------
<S>                                   <C>                <C>
ASSETS

Equity investments (cost basis of
 $3,273,583 and $2,094,559 in
 1996 and 1995, respectively)         $3,599,047         2,086,082

Cash and cash equivalents              2,425,606         3,948,745

Organizational costs (net of
 accumulated amortization of
 $24,000 and $18,000 in 1996
 and 1995, respectively)                  16,000            22,000

Other Assets                               1,761               874
                                       ---------         ---------
     Total                            $6,042,414         6,057,701
                                       =========         =========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses $   29,569            20,115
Due to related parties                    16,171            39,486
                                       ---------         ---------
     Total liabilities                    45,740            59,601

Commitments (Notes 3 and 6)

Partners' capital:
 Limited Partners (Units
  outstanding of 79,716
  in both 1996 and 1995)               5,679,147         6,011,161
 General Partners                         (7,937)           (4,584)
 Net unrealized fair value increase
  (decrease) from cost of equity 
  investments                            325,464            (8,477)
                                       ---------         ---------
     Total partners' capital           5,996,674         5,998,100
                                       ---------         ---------
        Total                         $6,042,414         6,057,701
                                       =========         =========

</TABLE>

See accompanying notes to financial statements.


<PAGE>

STATEMENTS OF OPERATIONS (unaudited)
-----------------------------------

<TABLE>
<CAPTION>

                                     For the Three                   For the Nine
                                     Months Ended                    Months Ended
                                     September 30,                   September 30,
                                -----------------------        ----------------------
                                   1996           1995          1996             1995
                                   ----           ----          ----             ----
<S>                             <C>              <C>          <C>             <C>
Interest income                 $ 43,461          64,523       140,814         186,689

Costs and expenses:
 Management fees                  39,650          39,649       118,948         164,484
 Individual General Partners'
  compensation                     7,519           9,022        23,284          24,022
 Amortization of organizational
  costs                            2,000           2,000         6,000           6,000
 Operating expenses:
  Administrative and investor
   services                       38,039          33,971       121,067         172,166
  Investment operations            8,572          12,952        47,816          62,613
  Professional fees               23,556           5,871        55,504          41,332
  Computer services                7,350           6,921        25,604          22,403
  Expenses absorbed by
   General Partners                   --              --       (50,162)        (52,168)
  Expenses not subject
   to limitation                      --              --       128,120              --
                                 -------         -------       -------         -------

     Total operating expenses     77,517          59,715       327,949         246,346
                                 -------         -------       -------         -------

  Total costs and expenses       126,686         110,386       476,181         440,852
                                 -------         -------       -------         -------

Net realized loss                (83,225)        (45,863)     (335,367)       (254,163)

Change in net unrealized fair
  value of equity investments     58,700              --       333,941         (10,937)
                                 -------         -------       -------         -------

Net loss                        $(24,525)        (45,863)       (1,426)       (265,100)
                                 =======         =======       =======         =======

Net realized loss per Unit      $     (1)             (1)           (4)             (3)
                                 =======         =======       =======         =======
</TABLE>

See accompanying notes to financial statements.



<PAGE>

STATEMENTS OF CASH FLOWS (unaudited)
-----------------------------------

<TABLE>
<CAPTION>
                                 For the Nine Months Ended September 30, 
                                 ---------------------------------------
                                                1996           1995 
                                                ----           ----
<S>                                           <C>            <C>
Cash flows from operating activities:
 Interest received                            $  132,047       186,689
 Cash paid to vendors                            (96,300)      (83,016)
 Cash paid to related parties                   (394,629)     (368,779)
                                               ---------     ---------

  Net cash used by operating activities         (358,882)     (265,106)
                                               ---------     ---------

Cash flows from investing activities:
 Purchase of equity investments               (1,164,257)     (494,763)
                                               ---------     ---------

  Net cash used by investing activities       (1,164,257)     (494,763)
                                               ---------     ---------

Cash flows from financing activities:
 Proceeds from sale of limited partnership
  interests                                           --     1,865,844
 General Partners' capital contribution               --         1,868
 Distribution of offering period income               --      (123,713)
 Payments for syndication fees                        --      (234,333)
                                               ---------     ---------

  Net cash provided by financing activities           --     1,509,666
                                               ---------     ---------

Net (decrease) increase in cash and cash
 equivalents                                  (1,523,139)      749,797

Cash and cash equivalents at beginning
 of year                                       3,948,745     3,571,768
                                               ---------     ---------

Cash and cash equivalents at September 30     $2,425,606     4,321,565
                                               =========     =========


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

Net loss                                      $   (1,426)     (265,100)

Adjustments to reconcile net loss
 to net cash used by operating activities:
  Amortization of organizational costs             6,000         6,000
  Change in net unrealized fair value
   of equity investments                        (333,941)       10,937

Changes in:
  Accounts payable and accrued expenses            9,454        (4,495)
  Due to/from related parties                    (23,315)      (11,105)
  Other changes, net                             (15,654)       (1,343)
                                               ---------     ---------

Net cash used by operating activities         $ (358,882)     (265,106)
                                               =========     =========

</TABLE>

See accompanying notes to financial statements.

<PAGE>

NOTES TO FINANCIAL STATEMENTS (unaudited)
----------------------------------------

1.     General
       -------

In the opinion of the Managing General Partners, the Balance Sheets as 
of September 30, 1996, and December 31, 1995, and the related Statements 
of Operations for the three and nine months ended September 30, 1996, 
and Statements of Cash Flows for the nine months ended September 30, 
1996 and 1995, reflect all adjustments which are necessary for a fair 
presentation of the financial position, results of operations and cash 
flows for such periods.  These statements should be read in conjunction 
with the Annual Report on Form 10-K for the year ended December 31, 
1995.  The following notes to financial statements for activity through 
September 30, 1996, supplement the notes included in the Annual Report 
on Form 10-K.  Allocation of income and loss to Limited and General 
Partners is based on cumulative income and loss.  Adjustments, if any, 
are reflected in the current quarter balances. 

2.     Net Realized Loss Per Unit
       --------------------------

Net realized loss per Unit is calculated by dividing total net realized 
loss allocated to the Limited Partners by the weighted average number of 
Limited Partner Units outstanding of 79,716 and 73,008 for the nine 
months ended September 30, 1996 and 1995, respectively.

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

Related party costs are included in costs and expenses shown on the 
Statements of Operations.  Related party costs for the nine months ended 
September 30, 1996 and 1995, were as follows:

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

Management fees                             $118,948           164,484
Syndication fees                                  --           234,333
Individual General Partners' compensation     23,284            24,022
Amortization of organizational costs           6,000             6,000
Reimbursable operating expenses              158,820           221,336
Expenses absorbed by General Partners        (50,162)          (52,168) 
Expenses not subject to limitation           128,120                --

</TABLE>

Certain reimbursable expenses have been accrued based upon interim 
estimates prepared by the Managing General Partners and are adjusted to 
actual costs periodically.

Pursuant to the Partnership Agreement, the Partnership shall reimburse 
the Managing General Partners for operational costs incurred by the 
Managing General Partners in conjunction with the business of the 
Partnership.  The Partnership may not pay or reimburse the Managing 
General Partners for operational costs that aggregate more than 3% of 
total Limited Partner capital contributions.  For the nine months ended 
September 30, 1996 and 1995, the Managing General Partners absorbed 
$50,162 and $52,168, respectively, in operating expenses.  During 1996, 
it was determined that operational costs paid directly by the 
Partnership, which had previously been absorbed by the General Partners, 
were not subject to this limitation; consequently, $128,120 was 
reimbursed to related parties.  Amounts due to related parties were 
$2,955 and $26,270 at September 30, 1996, and December 31, 1995, 
respectively.

Amounts due to related parties for management fees were $13,216 at both 
September 30, 1996, and December 31, 1995.  Pursuant to the Partnership 
Agreement, a full first year fee is paid to the Managing General 
Partners as each additional Limited Partner is admitted to the 
Partnership, regardless of the date the Limited Partner is admitted.  In 
May of 1995, the Partnership closed the offering with 19,076 additional 
Units sold during early 1995.

During the nine months ended September 30, 1995, the Partnership paid 
Technology Funding Securities Corporation ("TFSC"), the dealer-manager, 
commissions and fees of $133,618 of which $118,711 was reallowed to 
participating broker-dealers.  In addition, the Partnership also paid 
$7,424 for the nine months ended September 30, 1995, to TFSC for due 
diligence expenses which TFSC paid to unaffiliated broker-dealers.  No 
such commissions and fees were paid for the same period in 1996.

4.     Equity Investments
       ------------------

A complete listing of the Partnership's equity investments at December 
31, 1995, is in the 1995 Annual Report.  Activity from January 1 through 
September 30, 1996, consisted of

<TABLE>
<CAPTION>

                                                                     January 1-
                                                                 September 30, 1996
                                                  Principal      ------------------
                                    Investment     Amount or     Cost          Fair
Industry/Company      Position         Date         Shares       Basis         Value
----------------      --------      ----------    ----------     -----         -----
<S>                   <C>           <C>           <C>            <C>           <C>
Balance at January 1, 1996                                       $2,094,559    2,086,082
                                                                  ---------    ---------

Significant changes:

Biotechnology
-------------
Acusphere, Inc.       Series B
                      Preferred 
                      shares        05/95         125,000                 0       67,500
Acusphere, Inc.       Series C
                      Preferred 
                      shares        05/96         163,552           350,001      350,001
CV Therapeutics, Inc. Series G
                      Preferred
                      shares        03/96          19,034            16,368       38,068
CV Therapeutics, Inc. Common
                      share warrant
                      at $.25;
                      expiring
                      03/99         03/96          28,551            21,700       49,964
Prolinx, Inc.         Series A
                      Preferred
                      shares        09/96         156,000           156,000      156,000
RedCell, Inc.         Convertible
                      note (1)      02/96         $89,966            94,444       94,444
RedCell, Inc.         Convertible
                      note (1)      07/96         $71,973            73,221       73,221

Medical/Diagnostic Equipment
----------------------------
Endocare, Inc.        Common 
                      shares        08/96           2,000             6,000        5,980
Endocare, Inc.        Common
                      share
                      warrant
                      at $3.00
                      expiring 
                      08/01         08/96          30,000                 0       29,406
Endocare, Inc.        Convertible
                      note (1)      08/96        $150,000           152,400      152,400
R2 Technology, Inc.   Series A-1
                      Preferred
                      shares        05/94         100,000                 0       84,000
R2 Technology, Inc.   Convertible
                      note (1)      11/95         $33,332           (33,759)     (33,759)
R2 Technology, Inc.   Series B-1
                      Preferred
                      shares        03/96          17,134            34,268       34,268

Health Information Systems
--------------------------
CareCentric           Series B
 Solutions, Inc.      Preferred
                      shares        09/96          76,764           130,499      130,499

Pharmaceuticals
---------------
Periodontix,          Series A
 Inc.                 Preferred
                      shares        12/93         100,000                 0      100,000
Periodontix,          Series B
 Inc.                 Preferred
                      shares        02/96          67,000           134,000      134,000

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

Total significant changes during 
 the nine months ended September 30, 1996                         1,135,142    1,465,992

Other changes, net                                                   43,882       46,973
                                                                  ---------    ---------

Total equity investments at September 30, 1996                   $3,273,583    3,599,047
                                                                  =========    =========

(1)  Convertible notes include accrued interest.  Interest rates on notes issued in 1996 
     ranged from 8% to 16%.
</TABLE>

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

At September 30, 1996, marketable equity securities had an aggregate 
cost of $135,442 and an aggregate fair value of $111,325.  The 
unrealized loss at September 30, 1996, did not include gross gains.  At 
December 31, 1995, there were no marketable equity securities.

Acusphere, Inc.
-------------------

In May of 1996, the Partnership made an additional investment in the 
company by purchasing 163,552 Series C Preferred shares for $350,001.  
The pricing of this round indicated a fair value increase of $67,500 for 
the Partnership's existing investment.

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

In March of 1996, the Partnership made an additional investment in the 
company by purchasing 19,034 Series G Preferred shares and a warrant for 
28,551 common shares for a total cost of $38,068. The fair values above 
reflect the valuation of this financing, which resulted in an increase 
in the change in fair value of $49,964.

CareCentric Solutions, Inc.
---------------------------
In September of 1996, the Partnership made an additional investment in 
the company by purchasing 76,764 Series B Preferred shares for $130,499.  
The pricing of this round, in which third parties participated, 
indicated an increase in the change in fair value of $13,333 for the 
Partnership's existing investment.

Endocare, Inc.
--------------

In August of 1996, the Partnership issued $150,000 in convertible notes 
receivable to the company and received a warrant to purchase 30,000 
common shares.  The Partnership also received 2,000 common shares of 
Endocare, Inc., in lieu of loan fees.  At September 30, 1996, the 
Partnership recorded an increase in the change in fair value of $29,386 
to reflect the publicly-traded market price of its common stock and 
warrant investments; the fair value of which was adjusted to reflect a 
discount for restricted securities.

Periodontix, Inc.
-----------------

In February of 1996, the Partnership made an additional investment in 
the company by purchasing 67,000 Series B Preferred shares for $134,000. 
The pricing of this round indicated an increase in the change in fair 
value of $100,000 for the Partnership's existing investment.

Prolinx, Inc.
-------------

In September of 1996, the Partnership made an additional investment in 
the company by purchasing 156,000 Series A Preferred shares for 
$156,000.

R2 Technology, Inc.
-------------------

In March of 1996, the Partnership purchased 17,134 Series B-1 Preferred 
shares by converting the November, 1995, $33,332 note (including accrued 
interest of $936).  The pricing of this conversion financing round in 
which third parties participated, indicated an increase in the change in 
fair value of $84,000 for the Partnership's existing investment.

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

In February and July of 1996, the Partnership issued $89,966 and 
$71,973, respectively in convertible notes receivable to the company.  
Each note bears an interest rate of 8% and matures in December of 1996.
 
5.     Cash and Cash Equivalents
       -------------------------

Cash and cash equivalents at September 30, 1996, and December 31, 1995, 
consisted of:

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

Demand accounts                           $    2,744             606
Money-market accounts                      2,422,862       3,948,139
                                           ---------       ---------

     Total                                $2,425,606       3,948,745
                                           =========       =========
</TABLE>



6.     Commitments
       -----------

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 September 30, 1996, the Partnership had 
unfunded commitments as follows:
<TABLE>

<S>                                                        <C>

Type
----
Equity investments                                         $175,000
Term notes                                                  150,000
Venture capital limited partnership investment               12,500
                                                           --------
  Total                                                    $337,500
                                                           ========

</TABLE>

<PAGE>

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


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

During the nine months ended September 30, 1996, net cash used by 
operating activities totaled $358,882.  The Partnership paid management 
fees of $118,948 to the Managing General Partners and reimbursed related 
parties for operating expenses of $252,397.  In addition, $23,284 was 
paid to the Individual General Partners as compensation for their 
services.  Other operating expenses of $96,300 were paid.  The 
Partnership received $132,047 in interest income.

During the nine months ended September 30, 1996, the Partnership 
purchased $1,164,257 in equity investments mostly in portfolio companies 
in the biotechnology and medical/diagnostic equipment industries.

Cash and cash equivalents at September 30, 1996, were $2,425,606.  At 
September 30, 1996, the Partnership was committed to fund additional 
investments totaling $337,500.  Interest income earned on short-term 
investments and operating cash reserves are expected to be adequate to 
fund Partnership operations through the next twelve months.

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

Current quarter compared to corresponding quarter in the preceding year
-----------------------------------------------------------------------

Net loss was $24,525 for the three months ended September 30, 1996, 
compared to $45,863 for the same period in 1995.  The decrease in net 
loss was primarily due to a $58,700 increase in the change in net 
unrealized fair value of equity investments.

During the quarter ended September 30, 1996, the $58,700 increase in 
equity investments fair value was primarily attributable to a portfolio 
company in the medical/diagnostic equipment industry.  There was no such 
increase recorded during the same period in 1995.

The Partnership recorded interest income of $43,461 and $64,523 during 
the three months ended September 30, 1996 and 1995, respectively.  The 
decrease was primarily due to lower cash and cash equivalents balances 
in 1996 which resulted from new and follow-on investments.

Total operating expenses were $77,517 for the quarter ended September 
30, 1996, compared to $59,715 for the same period in 1995.  The increase 
from the same quarter in 1995 was mainly due to higher professional 
fees.

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

Current nine months compared to corresponding nine months in the
----------------------------------------------------------------
preceding year
--------------

Net loss was $1,426 for the nine months ended September 30, 1996, 
compared to $265,100 during the same period in 1995. The decrease in net 
loss was primarily due to a $344,878 increase in the change in net 
unrealized fair value of equity investments and a $45,536 decrease in 
management fees.  These changes were partially offset by a $81,603 
increase in total operating expenses and a $45,875 decrease in interest 
income.

During the nine months ended September 30, 1996, the $333,941 increase 
in equity investments fair value was substantially attributable to 
increases in portfolio companies in the biotechnology, 
medical/diagnostic equipment, and pharmaceuticals industries.  There was 
no such increase recorded during the same period in 1995. 

The Partnership recorded management fees of $118,948 and $164,484 during 
the nine months ended September 30, 1996 and 1995, respectively.  
Management fees were higher in 1995 due to Unit sales.

Total operating expenses were $327,949 and $246,346 for the nine months 
ended September 30, 1996 and 1995, respectively.  The Managing General 
Partners absorbed $50,162 and $52,168, respectively, as the 3% cap 
limitation discussed in Note 3 to the financial statements was in effect 
in both years.  In addition, the Managing General Partners were 
reimbursed $128,120 of prior year expenses not subject to the 
limitation.  Had this amount not been recorded as an expense in 1996 and 
had the limitation not been in effect, total operating expenses would 
have been $249,991 and $298,514 during the nine months ended September 
30, 1996 and 1995, respectively.  The 1995 amount was higher primarily 
due to the recognition of $55,975 of the $89,086 contingent liability at 
December 31, 1994, based on additional Units sold in 1995.

The Partnership recorded interest income of $140,814 and $186,689 for 
the nine months ended September 30, 1996 and 1995, respectively.  The 
decrease was mainly due to lower cash and cash equivalents balances in 
1996 resulting from new and follow-on investments.




II.       OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K

(a)  No reports on Form 8-K were filed by the Partnership during the
     quarter ended September 30, 1996.

(b)  Financial Data Schedule for the nine months ended and as of
     September 30, 1996 (Exhibit 27).



<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 MEDICAL PARTNERS I, L.P.

                         By:  TECHNOLOGY FUNDING INC.
                              Managing General Partner




Date:  November 8, 1996 By:         /s/Debbie A. Wong
                              -----------------------------------
                                     Debbie A. Wong
                                     Controller