TECHNOLOGY FUNDING VENTURE PARTNERS IV - 10-K Annual Report

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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, 2002

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)

1107 Investment Boulevard, Suite 180
El Dorado Hills, California 95762
- --------------------------------------- --------
(Address of principal executive offices) (Zip Code)

(916) 941-1400
--------------------------------------------------
(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 Registrant's
Proxy Statement relating to the Registrant's Meeting of Limited
Partners held on November 8, 2002 are incorporated by reference into
Part III of this Form 10-K where indicated.

PART I

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

Technology Funding Venture Partners IV, An Aggressive Growth
Fund, L.P. (the Partnership or the Registrant) is a limited
partnership organized under the laws of the State of Delaware on
December 4, 1986. For the period from December 5, 1986, through
November 14, 1988, the Partnership was inactive. The
Partnership filed a registration statement with the Securities
and Exchange Commission on November 14, 1988, and commenced
selling Units of limited partnership interest (Units) in January
1989. On February 16, 1989, the minimum number of Units
required to commence Partnership operations (15,000) had been
sold. The offering terminated with 400,000 Units sold on
September 14, 1990. The Partnership's original contributed
capital was $40,034,891, consisting of $39,994,896 from Limited
Partners for 400,000 Units and $39,995 from the General
Partners, Technology Funding Ltd. (TFL) and Technology Funding
Inc. (TFI). The General Partners do not own any Units.

The principal investment objectives of the Partnership are long-
term capital appreciation from venture capital investments in
new and developing companies and preservation of Limited Partner
capital through risk management and active involvement with such
companies (portfolio companies). The Partnership's investments
in portfolio companies primarily consist of equity securities
such as common and preferred shares, but also include debt
convertible into equity securities and warrants and options to
acquire equity securities. Although venture capital investments
offer the opportunity for significant gains, such investments
involve a high degree of business and financial risk that can
result in substantial losses. Among these are the risks
associated with investment in companies in an early stage of
development or with little or no operating history, companies
operating at a loss or with substantial variations in operating
results from period to period, and companies with the need for
substantial additional capital to support expansion or to
achieve or maintain a competitive position. Such companies may
face intense competition, including competition from companies
with greater financial resources, more extensive development,
manufacturing, marketing and service capabilities, and a larger
number of qualified managerial and technical personnel. There
is no ready market for many of the Partnership's investments.
The Partnership's investments in portfolio companies are
generally subject to restrictions on sale because they were
acquired from the issuer in private placement transactions or
because the Partnership is an affiliate of the issuer.

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 defined
in the Act. The Partnership's term was extended for a two-year
period to December 31, 1999, pursuant to unanimous approval by
the Management Committee on December 5, 1997. In April 1999,
the Management Committee further extended the term of the
Partnership to December 31, 2001. At a special meeting on
September 7, 2001, the Limited Partners elected to extend the
term of the Partnership to December 31, 2002 and for up to three
one-year extensions through December 31, 2005. On March 15,
2002, the Management Committee unanimously approved a one-year
extension of the Partnership to December 31, 2003. On November
8, 2002, the Limited Partners approved an additional one-year
extension to the term of the Partnership through December 31,
2006.

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

The Registrant has no material physical properties.

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

In October 2000, Kanematsu Corporation, a creditor of one of the
Partnership's portfolio companies, initiated an arbitration
proceeding against the Partnership, two affiliated partnerships,
and a fourth co-investor. Kanematsu was seeking to recover
$2,000,000, the purchase price in a contract by which the
Partnership and the other entities were alleged to have agreed
to purchase certain debt securities of the portfolio company
from Kanematsu. The Partnership and affiliated partnerships
asserted counterclaims against Kanematsu. On February 12, 2002,
the Partnership, affiliated partnerships and the co-investor
were awarded $4,000,000 and all of Kanematsu's claims were
denied. The award is in full settlement of all claims and
counterclaims. The Partnership recognized revenue and a
receivable of $666,667 as of February 12, 2002, for its
proportionate share of the award. Kanematsu immediately filed a
petition to vacate the award, and on October 9, 2002, the United
States District Court issued an order confirming the arbitration
award. Kanematsu appealed the order but in early November 2002
paid a forbearance fee of $200,000 in exchange for an option to
settle all liabilities. On November 29, 2002, Kanematsu agreed
to settle for $3,999,999. A decision on the allocation of the
proceeds between the Partnership, affiliates and co-investor was
reached in January 2003; however, a dispute of the legal fee has
arisen. The Partnership received $774,298 on February 13, 2003,
which represents its proportionate share of the settlement, less
disputed legal fees, plus accrued interest. The Partnership
recognized the additional revenue and receivable of $107,631 at
December 31, 2002. Legal counsel for the Partnership is
actively seeking to resolve the fee dispute and recover the
remaining settlement proceeds for the Partnership.
The Partnership is unable to determine the amount of remaining
settlement proceeds or disputed legal fees as of December 31,
2002.

From time to time, the Partnership is subject to routine
litigation incidental to the business of the Partnership.
Although there can be no assurances as to the ultimate
disposition of these matters and the proceeding disclosed above,
it is the opinion of the Managing General Partners, based upon
the information available at this time, that the expected
outcome of these matters, individually or in the aggregate, will
not have a material adverse effect on the results of operations
and financial condition of the Partnership.

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

A special meeting of the Limited Partners of the Partnership was
held on November 8, 2002. At that meeting, the Limited Partners
ratified the appointment of Grant Thornton as independent
certified public accountants of the Partnership (387,796 Units
voting for, 3,738 Units voting against and 8,466 Units
abstaining) and amended the Limited Partnership Agreement for
the following items: 1) change the composition of the
Management Committee to include only one representative from
Technology Funding Ltd., the Managing General Partner, and no
fewer than two Individual General Partners (379,074 Units voting
for, 12,967 Units voting against and 7,959 Units abstaining), 2)
increase the compensation each Individual General Partner
receives for services rendered to the Partnership (331,151 Units
voting for, 60,109 Units voting against and 8,740 Units
abstaining), and 3) approve an additional one-year extension to
the term of the Partnership through December 31, 2006, at the
discretion of the Partnership's Management Committee (358,929
Units voting for, 33,554 Units voting against and 7,517 Units
abstaining). No other matters were voted on at this meeting.

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, 2002, there were 7,871 record holders of
Units.

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

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

For the Years Ended and As of December 31,
---------------------------------------------------------------
2002 2001 2000 1999 1998
------ ------ ------ ------ ------

Total investment income $ 29,278 $ 78,566 $ 803,943 $ 46,467 $ 119,497
Net investment loss (1,401,764) (1,488,740) (1,647,314) (1,176,106) (1,461,264)
Net realized gain from
venture capital limited
partnership investments 18,036 295,343 911,025 982,946 --
Net realized (loss) gain from
sales of equity investments (163,956) (346,759) 6,687,582 (663,218) 178,402
Realized gain from recovery of
investments previously
written off 356,841 47,540 -- -- 3,650
Realized loss from
investment write-offs (4,848,611) (1,615,883) (4,119,073) (2,615) (422,261)
(Increase) decrease in
unrealized depreciation:
Equity investments (2,249,130) (3,171,163) (1,875,962) 405,078 1,358,307
Notes receivable 4,874,425 (158,807) (4,726,055) -- --
Income from legal proceedings 774,298 -- -- -- --
Income from extinguishment
of debt 571,478 -- -- -- --
Net decrease in partners'
capital resulting from
operations (2,068,363) (6,438,469) (4,769,797) (453,915) (343,166)
Net decrease in partners'
capital resulting from
operations per Unit (1) (4.36) (13.08) (8.97) (0.57) (0.67)
Total assets 2,515,657 3,991,947 11,348,815 16,319,765 17,073,958
Distributions declared -- -- 1,314,295 -- 2,370,130
Distributions declared
per Unit (2) -- -- -- -- 4.39

(1) See Notes 1 and 3 to the Financial Statements for a description of the method of calculation of
net decrease in partners' capital from operations per Unit.
(2) Calculation is based on distributions declared to Limited Partners divided by the weighted
average number of Units outstanding during the year.

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

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

The Partnership operates as a business development company
under the Investment Company Act of 1940 and makes venture
capital investments in new and developing companies. The
Partnership's financial condition is dependent upon the
success of the portfolio companies. There is no ready market
for many of the Partnership's investments. It is possible
that some of its venture capital investments may be a complete
loss or may be unprofitable and that others will appear likely
to become successful, but may never realize their potential.
The valuation of the Partnership's investments in securities
for which there are no available market quotes is subject to
the estimate of the Managing General Partners in accordance
with the valuation guidance described in Note 1 to the
financial statements. In the absence of readily obtainable
market values, the estimated fair value of the Partnership's
investments may differ significantly from the values that
would have been used had a ready market existed.

The Partnership continues to experience decreases in partners'
capital resulting from overall market declines and from
operations. For the year ended December 31, 2002, the
Partnership incurred a net decrease in partners' capital of
$2,249,130. In addition, the Partnership's liquid assets,
including unrestricted marketable equity investments, are not
adequate to fund on going operations of the Partnership for
2003. These factors, among others, raise substantial doubt
about the Partnership's ability to continue as a going
concern. As a result, the Independent General Partners have
tasked the Managing General Partners with examining a number
of different options, including the possible early sale of
some of the Partnership's private holdings. The accompanying
financial statements do not include any adjustments that might
result from the outcome of these uncertainties.

For the year ended December 31, 2002, net cash used by
operating activities totaled $1,563,920. The Partnership paid
management fees of $41,152 to the Managing General Partners
and reimbursed related parties for operating expenses of
$879,254 in 2002. In addition, $50,500 was paid to the
Individual General Partners as compensation for their
services. The Partnership prepaid operating expenses of
$186,180 to related parties as part of an employee retention
program. Other operating expenses of $423,061 were paid,
interest paid on short-term borrowings was $10,404 and
interest income of $26,631 was received.

For the year ended December 31, 2002, the Partnership funded
equity investments of $79,500 to a portfolio company in the
communications industry. Repayments of notes receivable
provided cash of $125,000. The Partnership received cash
distributions from venture capital limited partnerships
totaling $18,036 and recovered $363,976 from investments that
had been previously written off. The Partnership received
$1,147,180 in short-term borrowings. At December 31, 2002,
there were no unfunded commitments.

Cash and cash equivalents at December 31, 2002, were $22,739.
In January 2002, the Partnership borrowed $562,968 and
$584,212 from a financial institution and pledged its shares
in Endocare, Inc. and GenStar Therapeutic Corporation as
collateral, respectively. Due to the value of Endocare, Inc.
dropping below 10 percent of the face value of the note, the
note is currently in default. As a result, the financial
institution that issued the note in exchange for the
Partnership's pledge of Endocare, Inc. shares is now entitled
to own the Endocare, Inc. shares. With the release of the
shares to the financial institution, the Partnership's
obligation to satisfy the note is fulfilled and the
Partnership has recorded income of $571,478, which includes
the value of the note and accrued interest payable of $8,510.
The Partnership also recorded a loss on the sale of equity
investments of $163,874 due to the release of the Endocare,
Inc. shares. The remaining note bears interest at the London
Interbank Offered Rate plus 1.5 percent, which is payable
quarterly. The outstanding principal and any remaining
accrued interest are due December 30, 2004. Future proceeds
from investment sales and Managing General Partner support are
expected to be adequate to fund Partnership operations through
the next twelve months.

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

2002 compared to 2001
- ---------------------

Net decrease in partners' capital resulting from operations
was $2,068,383 in 2002 compared to $6,438,469 in 2001.

Unrealized depreciation on notes receivable investments was
$10,437 and $4,884,862 at December 31, 2002 and 2001,
respectively. During the year ended December 31, 2002, the net
decrease in unrealized depreciation of notes receivable of
$4,874,425 was mainly attributable to the write off of notes
issued to Sutmyn Storage Corporation. During the year ended
December 31, 2001, the net increase in unrealized depreciation
of notes receivable of $158,807 was primarily attributable to
a decrease in the fair value of notes issued to Thermatrix
Inc.

During 2002, the Partnership recorded realized losses from
investment write-offs of $4,848,611, of which $4,723,611
represents the Partnership's total investment in Sutmyn
Storage Corporation. The fair value of these notes was
reduced to zero during 2000 and it has been determined by the
Managing General Partners that there will be no recovery on
the notes as the company has ceased operations. The remaining
$125,000 represents notes issued to Thermatrix Inc. which were
determined to be uncollectible. During 2001, there were
realized losses from investment write-offs of $1,615,883,
which represents the Partnership's total investments in Adesso
Healthcare Technology Services, Inc. and Ascent Logic
Corporation. Both companies ceased operations in 2001.

Unrealized depreciation on equity investments was $3,791,850
and $1,542,720 at December 31, 2002 and 2001, respectively.
During the year ended December 31, 2002, the increase in net
unrealized depreciation on equity investments of $2,249,130
was primarily a result of decreases in the market prices of
publicly traded portfolio companies in the
medical/biotechnology industry and decreases in the fair value
of investments in venture capital limited partnerships.
During 2001, the increase in unrealized depreciation of equity
investments of $3,171,163 was primarily attributable to
decreases in the market prices of publicly traded portfolio
companies in the medical/biotechnology industry, partially
offset by the write off of Adesso Healthcare Technology
Services, Inc.

Income from legal proceedings was $774,298 for the year ended
December 31, 2002. In October 2000, Kanematsu Corporation, a
creditor of one of the Partnership's portfolio companies,
initiated an arbitration proceeding against the Partnership,
two affiliated partnerships, and a fourth co-investor.
Kanematsu was seeking to recover $2,000,000, the purchase
price in a contract by which the Partnership and the other
entities were alleged to have agreed to purchase certain debt
securities of the portfolio company from Kanematsu. The
Partnership and affiliated partnerships asserted counterclaims
against Kanematsu. On February 12, 2002, the Partnership,
affiliated partnerships and the co-investor were awarded
$4,000,000 and all of Kanematsu's claims were denied. The
award is in full settlement of all claims and counterclaims.
The Partnership recognized revenue and a receivable of
$666,667 as of February 12, 2002, for its proportionate share
of the award. Kanematsu immediately filed a petition to
vacate the award, and on October 9, 2002, the United States
District Court issued an order confirming the arbitration
award. Kanematsu appealed the order but in early November
2002 paid a forbearance fee of $200,000 in exchange for an
option to settle all liabilities. On November 29, 2002,
Kanematsu agreed to settle for $3,999,999. A decision on the
allocation of the proceeds between the Partnership, affiliates
and co-investor was reached in January 2003; however, a
dispute of the legal fee has arisen. The Partnership received
$774,298 on February 13, 2003, which represents its
proportionate share of the settlement, less disputed legal
fees, plus accrued interest The Partnership recognized the
additional revenue and receivable of $107,631 at December 31,
2002. Legal counsel for the Partnership is actively seeking to
resolve the fee dispute and recover the remaining settlement
proceeds for the Partnership. The Partnership is unable to
determine the amount of remaining settlement proceeds or
disputed legal fees as of December 31, 2002. There was no
such income in 2001.

Income from extinguishment of debt was $571,478 for the year
ended December 31, 2002. In January 2002, the Partnership
borrowed $562,968 and $584,212 from a financial institution
and pledged its shares in Endocare, Inc. and GenStar
Therapeutic Corporation as collateral, respectively. Due to
the value of Endocare, Inc. dropping below 10 percent of the
face value of the note, the note is currently in default. As a
result, the financial institution that issued the note in
exchange for the Partnership's pledge of Endocare, Inc. shares
is now entitled to own the Endocare, Inc. shares. With the
release of the shares to the financial institution, the
Partnership's obligation to satisfy the note is fulfilled and
the Partnership recorded income of $571,478, which includes
the value of the note and accrued interest payable of $8,510.
There was no such income in 2001.

Net realized loss from sales of equity investments totaled
$163,596 in 2002 and was primarily related to the release of
the Partnership's investment in Endocare, Inc. in satisfaction
of a note payable. In 2001 there was a loss of $346,759 in
2001, which primarily resulted from the sale of Efficent
Networks, Inc.

During 2002, the Partnership realized a gain of $356,841 for
the recovery of investments previously written off. This
relates primarily to investments in Thermatrix Inc. and Vois,
Inc. During 2001, the Partnership realized a gain of $47,540.

During 2002, the Partnership recorded net realized gains from
venture capital limited partnership investments of $18,036 as
compared to gains of $295,343 during 2001. The gains
represent distributions from profits of venture capital
limited partnerships.

Investment expenses were $1,431,042 and $1,567,306 for 2002
and 2001, respectively. In 2002 the Managing General Partners
billed the Partnership $58,593 and $17,820 for operating
expenses incurred during 2001 and prior years, respectively.
Had these expenses been billed in the prior years the
investment expenses for 2002 and 2001 would have been
$1,354,629 and $1,625,899, respectively. An increase in
administrative and investor service costs from 2002 to 2001
was offset by decreases in management fees, investment
operations costs, computer services costs, and 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.

2001 compared to 2000
- ---------------------

Net decrease in partners' capital resulting from operations
was $6,438,469 in 2001 compared to $4,769,797 in 2000.

Net realized loss from sales of equity investments totaled
$346,759 in 2001 and primarily related to the sale of
Efficient Networks, Inc. During 2000, net realized gain from
sales of equity investments of $6,687,582 primarily resulted
from the sale of Inhale Therapeutic Systems, Inc. and
Physiometrix, Inc.

Unrealized depreciation on notes receivable investments was
$4,884,862 and $4,726,055 at December 31, 2001 and 2000,
respectively. During the year ended December 31, 2001, the net
increase in unrealized depreciation of notes receivable of
$158,807 was primarily attributable to a decrease in the fair
value of notes issued to Thermatrix Inc. During the year
ended December 31, 2000, the Partnership recorded unrealized
depreciation on notes receivable of $4,726,055 primarily
related to loans made to Sutmyn Storage Corporation, a
portfolio company in the computer equipment, systems and
software industry.

During 2001, the Partnership recorded realized losses from
investment write-offs of $1,615,883, which represents the
Partnership's total investments in Adesso Healthcare
Technology Services, Inc. and Ascent Logic Corporation. Both
companies ceased operations in 2001. During 2000, the
Partnership recorded realized losses from investment write-
offs of $4,119,073, which represents the Partnership's total
investment in Biex, Inc. and its existing equity investment in
Thermatrix Inc. Biex, Inc. suspended operations in November
2000 after it was unable to obtain additional funding.

Unrealized depreciation on equity investments was $1,542,720
at December 31, 2001, as compared to unrealized appreciation
of $1,628,443 at December 31, 2000. During the year ended
December 31, 2001, the increase in net unrealized depreciation
on equity investments of $3,171,163 was primarily attributable
to decreases in the market prices of publicly traded portfolio
companies in the medical/biotechnology industry, partially
offset by the write off of Adesso Healthcare Technology
Services, Inc. During 2000, the decrease in unrealized
appreciation of equity investments of $1,875,962 was primarily
attributable to the sale of equity investments resulting in a
$1,498,346 decrease in unrealized appreciation as the
appreciation was realized upon sale along with additional
decreases in the value of the Partnership's marketable equity
securities and the fair value of the partnership's investments
in restricted securities. The decrease was partially offset
by increases in portfolio companies in the
medical/biotechnology industry and the venture capital limited
partnerships and a $2,047,313 increase due to the write-down
of Thermatrix Inc.

Investment expenses were $1,567,306 and $2,451,257 for 2001
and 2000, respectively. In the second quarter of 2000, the
Managing General Partners billed the Partnership an additional
$170,464 for investment management expenses incurred by the
General Partners in prior years, but not previously billed to
the Partnership. In the fourth quarter of 2000, the Managing
General Partners billed the Partnership an additional $658,486
for operating expenses relating to prior years that had not
been fully recovered as permitted by the Partnership
Agreement. If these expenses had been billed in prior years,
investment expenses for 2000 would have been $1,622,307. The
decrease from 2000 to 2001 is primarily due to decreased
management fees and personnel costs, partially offset by
increased professional fees due to the Kanematsu arbitration
and increased interest expense.

During 2001, interest income was $78,566. In 2000, interest
income of $803,943 was primarily the result of interest earned
on secured notes receivable and higher cash balances.

During 2001, the Partnership recorded net realized gains from
venture capital limited partnership investments of $295,343 as
compared to gains of $911,025 during 2000. The gains
represented distributions from profits of venture capital
limited partnerships.

New Accounting Pronouncements
- -----------------------------

In April 2002, the FASB issued SFAS No. 145, Rescission of
FASB Statements No. 4, 44, and 64, Amendment of FASB Statement
No. 13, and Technical Corrections ("SFAS No. 145"). SFAS No.
145 requires that gains and losses from extinguishment of debt
be classified as extraordinary items only if they meet the
criteria in Accounting Principles Board Opinion No. 30
("Opinion No. 30"). Applying the provisions of Opinion No. 30
will distinguish transactions that are part of an entity's
recurring operations from those that are unusual and
infrequent and meet the criteria for classification as an
extraordinary item. SFAS No. 145 is effective for the
Partnership beginning January 1, 2003. However, early
adoption is encouraged and therefore the Partnership has
adopted SFAS No. 145 as of the year ended December 31, 2002.
See Note 8 to the financial statements.

In July 2002, the FASB issued SFAS No. 146, Accounting for
Costs Associated with Exit or Disposal Activities ("SFAS No.
146"). SFAS No. 146 addresses financial accounting and
reporting for costs associated with exit or disposal
activities, such as restructurings, involuntarily terminating
employees, and consolidating facilities initiated after
December 31, 2002. The implementation of SFAS No. 146 will
not require the restatement of previously issued financial
statements. The Partnership has implemented early adoption of
SFAS No. 146 to all applicable costs associated with exit or
disposal activities occurring after December 31, 2002. See
Note 1 to the financial statements.

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
- ------- ----------------------------------------------------------

The Partnership is subject to financial market risks,
including changes in interest rates with respect to its
investments in debt securities and interest bearing cash
equivalents as well as changes in marketable equity security
prices. The Partnership does not use derivative financial
instruments to mitigate any of these risks. The return on the
Partnership's investments is generally not affected by foreign
currency fluctuations.

The Partnership does not have a significant exposure to modest
public market price fluctuations as the Partnership primarily
invests in private business enterprises. However, should
significant changes in market equity prices occur, there could
be a longer-term effect on valuations of private companies,
which could affect the carrying value and the amount and
timing of gains realized on these investments. Since there is
typically no public market for the Partnership's investments
in private companies, the valuation of the investments is
subject to the estimate of the Partnership's Managing General
Partners. In the absence of a readily ascertainable market
value, the estimated value of the Partnership's investments in
private companies may differ significantly from the values
that would be placed on the portfolio if a ready market
existed. The Partnership's portfolio also includes common
stocks in publicly traded companies. These investments are
directly exposed to equity price risk, in that a hypothetical
10 percent change in these equity prices would result in a
similar percentage change in the fair value of these
securities. The Partnership's investments also include some
debt securities. Since the debt securities are generally
priced at a fixed rate, changes in interest rates do not
directly impact interest income. The Partnership's debt
securities are generally held to maturity or converted into
equity securities of private companies.

Item 8. FINANCIAL STATEMENTS
- ------ --------------------

The financial statements of the Registrant are set forth in
Item 15.

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

A Form 8-K was filed by the Partnership on July 1, 2002, to
report the appointment of Grant Thornton LLP as the
Partnership's independent public accountants.

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 two Individual
General Partners and a representative from Technology Funding
Ltd., a California limited partnership (TFL). TFL and its
wholly owned subsidiary, Technology Funding Inc., a California
corporation (TFI) are the Managing General Partners.
Reference is made to the information regarding Individual
General Partners and the Managing General Partners in the
Registrant's Proxy Statement related to the Meeting of Limited
Partners held on November 8, 2002, which information is
incorporated herein by reference.

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

As a partnership, the Registrant has no officers or directors.
In 2002, the Partnership incurred $37,488 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. General Partner
Overhead (as defined in the Partnership Agreement) includes
the General Partners' share of rent, utilities, property taxes
and the cost of capital equipment and the general and
administrative expenses paid by the Managing General Partners
in performing their obligations to the Partnership. As
compensation for their services, the Individual General
Partners each receive $14,000 annually, plus $1,500 for
attendance at each meeting of the Management Committee and
committees thereof. In 2002, $50,500 of such fees were paid.
The Individual General Partners are reimbursed for all out-of-
pocket expenses relating to attendance of the meetings,
committees or otherwise of the Management Committee.

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

Not applicable. No Limited Partner beneficially holds more
than 5 percent 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 two Individual General Partners each own 20 Units.
The Management Committee controls 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.

Item 14. PROCEDURES AND CONTROLS
- ------- -----------------------

The signing officer is responsible for establishing and
maintaining disclosure controls and procedures for Technology
Funding Partners IV, L.P. Such officer has concluded (based
upon his evaluation of these controls and procedures as of a
date within 90 days of the filing of this report) that
Technology Funding Partners IV, L.P.'s disclosure controls and
procedures are effective to ensure that information required
to be disclosed by Technology Funding Partners IV, L.P. in
this report is accumulated and communicated to Technology
Funding Partners IV, L.P.'s management, including its
principal executive officers as appropriate, to allow timely
decisions regarding required disclosure.

The certifying officer also has indicated that there were no
significant changes in Technology Funding Partners IV, L.P.'s
internal controls or other factors that could significantly
affect such controls subsequent to the date of their
evaluation, and there were no corrective actions with regard
to significant deficiencies and material weaknesses.

PART IV

Item 15. 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:

Report of Independent Certified Public Accountants as
of and for the year ended December 31, 2002
Report of Independent Public Accountants as of and
for the years ended December 31, 2001 and 2000
Balance Sheets as of December 31, 2002 and 2001
Statements of Investments as of
December 31, 2002 and 2001
Statements of Operations for the years
ended December 31, 2002, 2001 and 2000
Statements of Partners' Capital for the years
ended December 31, 2002, 2001 and 2000
Statements of Cash Flows for the years
ended December 31, 2002, 2001 and 2000
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

None

(b) Reports on Form 8-K

(1) On July 1, 2002, the Partnership reported on Form
8-K the appointment of Grant Thornton LLP as the
Partnership's independent public accountants.

(2) On October 10, 2002, the Partnership filed its
Amended and Restated Limited Partnership Agreement
on Form 8-K.

(3) On November 13, 2002, the Partnership filed Form 8-K
to report the voting results of the special meeting
of Limited Partners held on November 8, 2002.

(4) On January 8, 2003, the Partnership filed its
Amended and Restated Limited Partnership Agreement
on Form 8-K.

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- --------------------------------------------------

To the Partners of
Technology Funding Venture Partners IV,
an Aggressive Growth Fund, L.P.:

We have audited the accompanying balance sheet of Technology Funding
Venture Partners IV, an Aggressive Growth Fund, L.P. (a Delaware
limited partnership) (the Fund), including the statement of
investments, as of December 31, 2002, and the related statements of
operations, partners' capital, and cash flows for the year ended
December 31, 2002. These financial statements are the responsibility
of the Fund's management. Our responsibility is to express an opinion
on these financial statements based on our audit. The financial
statements of Technology Funding Venture Partners IV, an Aggressive
Growth Fund, L.P. as of December 31, 2001 and for the years ended
December 31, 2001 and 2000, were audited by other auditors who have
ceased operations. Those auditors expressed an unqualified opinion on
those financial statements in their report dated March 15, 2002.

We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. 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 physical inspection of securities owned as of December 31,
2002. 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 audit
provides 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, 2002, and the results of its operations, changes in
partners' capital, and its cash flows for the year ended December 31,
2002, in conformity with accounting principles generally accepted in
the United States of America.

The accompanying financial statements have been prepared assuming that
the Fund will continue as a going concern. As discussed in Note 1 to
the financial statements, the Fund continues to experience decreases in
partners' capital resulting from overall market declines and from
operations which raises substantial doubt about its ability to continue
as a going concern. The Independent General Partner's plans in regard
to these matters are also described in Note 1. The financial
statements do not include any adjustments that might result from the
outcome of this uncertainty.

Albuquerque, New Mexico /S/GRANT THORNTON LLP
March 17, 2003

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- ----------------------------------------

To the Partners of
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) (the Fund), including the statements of investments, as of
December 31, 2001 and 2000, and the related statements of operations,
partners' capital, and cash flows for the years then ended. These
financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. 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
physical inspection of securities owned as of December 31, 2001 and 2000.
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, 2001 and 2000, and the results of its operations, changes in
partners' capital, and its cash flows for the years then ended in
conformity with accounting principles generally accepted in the United
States.

Los Angeles, California /S/ARTHUR ANDERSEN LLP
March 15, 2002

THIS IS A COPY OF THE AUDIT REPORT PREVIOUSLY ISSUED BY ARTHUR
ANDERSEN LLP IN CONNECTION WITH TECHNOLOGY FUNDING VENTURE PARTNERS IV,
LP'S FILING ON FORM 10-K FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000.
THIS AUDIT REPORT HAS NOT BEEN REISSUED BY ARTHUR ANDERSEN LLP IN
CONNECTION WITH THIS FILING ON FORM 10-K.

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

December 31,
------------------------
2002 2001
------ ------

ASSETS

Investments:
Equity investments (cost basis of
$5,326,941 and $5,411,903 for
2002 and 2001, respectively) $1,535,091 $3,869,183
Notes receivable, net (cost basis
of $13,044 and $4,994,413 for
2002 and 2001, respectively) 2,607 109,551
--------- ---------
Total investments 1,537,698 3,978,734

Cash and cash equivalents 22,739 11,967
Prepaid expenses 180,247 --
Other receivable 774,298 --
Other assets 675 1,246
--------- ---------
Total assets $2,515,657 $3,991,947
========= =========

LIABILITIES AND PARTNERS' CAPITAL

Accounts payable and accrued expenses $ 44,114 $ 89,601
Due to related parties 282,288 237,830
Short-term borrowings 584,212 --
Other liabilities 8,910 --
--------- ---------
Total liabilities 919,524 327,431

Commitments and contingencies
(See Note 10)

Partners' capital
(400,000 Limited Partner Units
outstanding) 1,596,133 3,664,516
--------- ---------
Total liabilities and
partners' capital $2,515,657 $3,991,947
========= =========

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

STATEMENTS OF INVESTMENTS
- -------------------------

Principal
Amount or December 31, 2002 December 31, 2001
Industry Shares at ----------------- -----------------
(1) Investment December 31, Cost Fair Cost Fair
Company Position Date 2002 Basis Value Basis Value
- ------------- -------- ---------- ----------- ----- ----- ----- -----

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

Communication
- -------------
7.0% and 8.3% at December 31, 2002 and 2001, respectively
- ----------------------------------------------------------
VOIS, Inc. Other 1999-
investment 2000 -- $ -- $ -- $ 10,911 $ --
iVillage, Inc. Common 1996-
shares 2000 60,848 411,165 57,197 411,165 115,611
WorldRes.com, Inc. Common 1997-
(a) (b) shares 1999 155,918 619,687 46,775 619,687 187,102
WorldRes.com, Inc. Convertible
(a) (b) note (2) 2002 $79,500 84,775 8,476 -- --
WorldRes.com, Inc. Common
(a) (b) share
warrants
expired 2002 1997 -- -- -- 82 0
--------- --------- ---------- ---------
1,115,627 112,448 1,041,845 302,713
--------- --------- ---------- ---------

STATEMENTS OF INVESTMENTS (continued)
- ------------------------------------
Environmental
- -------------
50.8% and 28.4% at December 31, 2002 and 2001, respectively
- ----------------------------------------------------------
SunPower
Corporation Common 1990-
(a) (b) shares 1994 1,165,217 1,179,051 757,391 1,179,051 988,296
SunPower Common share
Corporation warrant
(a) (b) at $.06;
expiring
2005 2000 469,455 0 0 0 0
SunPower
Corporation Convertible
(a) (b) note (2) 2002 $52,000 52,960 52,960 50,790 50,790
Triangle
Biomedical Common
Sciences, Inc.(a) shares 1999 366 10,248 0 10,248 1,025
Triangle Common share
Biomedical warrant
Sciences, Inc.(a) at $28.00;
expiring
2009 1999 366 366 0 366 37
--------- --------- ---------- ---------
1,242,625 810,351 1,240,455 1,040,148
--------- --------- ---------- ---------
Medical/Biotechnology
- ---------------------
16.5% and 46.4% at December 31, 2002 and 2001, respectively
- -----------------------------------------------------------
Endocare, Inc. Common 1996-
(b) (c) shares 2000 -- -- -- 163,874 446,135

STATEMENTS OF INVESTMENTS (continued)
- ------------------------------------
GenStar
Therapeutic Common
Corporation(b)(c) shares 1999 438,366 320,242 70,138 320,242 541,382
GenStar Common
Therapeutic share
Corporation (b) warrants at
$0.30-$0.74;
expiring 1998-
2005-2006 1999 291,667 0 1,667 0 288,959
Hemoxymed, Inc.
(formerly
Molecular
Geriatrics Common
Corporation) (a) shares 1993 15,528 125,000 854 125,000 2,123
Periodontix, Preferred
Inc. (a) shares 1998 106,122 259,999 0 259,999 0
Periodontix, Convertible
Inc. (a) note (2) 1999 $37,000 48,054 947 45,094 24,494
Physiometrix, Common
Inc. shares 1996 126,791 53,793 69,735 53,793 276,404
Sanarus
Medical, Preferred 1999-
Inc. (a) (b) shares 2001 138,531 215,000 119,766 215,000 119,766
Sanarus Preferred
Medical, share
Inc. (a) (b) warrants
at exercise
price TBD;
expiring
2006 2001 55 54 27 54 27
--------- --------- ---------- ---------
1,022,142 263,134 1,183,056 1,699,290
--------- --------- ---------- ---------
STATEMENTS OF INVESTMENTS (continued)
- -------------------------------------
Microelectronics
- ----------------
2.7% and 1.2% at December 31, 2002 and 2001, respectively
- ---------------------------------------------------------
KOR Electronics, Preferred 1989-
Inc. (a) (b) shares 1995 3,571,024 1,130,390 42,390 1,130,390 42,390
--------- --------- ---------- ---------
1,130,390 42,390 1,130,390 42,390
--------- --------- ---------- ---------

Venture Capital Limited Partnership Investments
- -----------------------------------------------
19.2% and 21.4% at December 31, 2002 and 2001, respectively
- ----------------------------------------------------------
El Dorado Ltd.
Ventures III, L.P.Partnership
(a) interests various $250,000 212,460 24,739 212,460 30,578
Medical Science Ltd.
Partners, L.P. Partnership
(a) interests various $500,000 187,246 93,623 187,246 194,394
Newtek Ltd.
Ventures II, L.P. Partnership
(a) interests various $859,914 330,328 165,164 330,328 510,285
Onset Enterprises Ltd.
Associates, L.P. Partnership
(a) interests various $500,000 45,000 22,500 45,000 38,460
Utah Ventures Ltd.
Limited Partnership
Partnership (a) interests various $250,000 41,123 742 41,123 10,925
--------- --------- ---------- ---------
816,157 306,768 816,157 784,642
--------- --------- ---------- ---------

STATEMENTS OF INVESTMENTS (continued)
- -------------------------------------
Total equity investments 96.2% and 105.7% at
December 31, 2002 and 2001, respectively 5,326,941 1,535,091 5,411,903 3,869,183
--------- --------- ---------- ---------

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

Avalon Vision Secured
Solutions, Inc. note, 16%,
due 2004 1999 $11,676 13,044 2,607 12,303 6,151
Sutmyn Secured
Storage note, 50%,
Corporation due on
(b) demand 2000 -- -- -- 4,723,610 0
Thermatrix Inc. Unsecured
note, 12%
due on
demand 2001 -- -- -- 258,500 103,400
--------- --------- ---------- ---------
Total notes receivable 0.2% and 3.0% at
December 31, 2002 and 2001, respectively 13,044 2,607 4,994,413 109,551
--------- --------- ---------- ---------
Total investments 96.4% and 108.7% at
December 31, 2002 and 2001, respectively $5,339,985 $1,537,698 $10,406,316 $3,978,734
========= ========= ========== =========

STATEMENTS OF INVESTMENTS (continued)
- -------------------------------------

Legends and footnotes:

- -- No investment held at end of period.
0 Investment active with a cost basis or fair value of zero.

(a) Equity security acquired in a private placement transaction; resale may be subject to
certain selling restrictions.
(b) Portfolio company is an affiliate of the Partnership; resale may be subject to certain
selling restrictions.
(c) Security is pledged as collateral for borrowing. In December 2002 the Partnership recorded
a loss of $163,874 due to the release of its investment in Endocare, Inc. to a financial
institution to which the shares were pledged.
(See Note 8.)

(1) Represents the total fair value of a particular industry segment as a percentage of
partners' capital at 12/31/02 and 12/31/01.

(2) The Partnership has no income-producing equity investments except for convertible notes
which include accrued interest. Interest rates on such notes are 8.25 percent.

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

STATEMENTS OF OPERATIONS
- ------------------------

For the Years Ended December 31,
-----------------------------------
2002 2001 2000
------ ------ ------

Investment income:
Notes receivable
interest $ 26,972 $ 43,310 $ 738,987
Short-term investment
interest 2,306 35,256 64,956
--------- --------- ---------
Total investment
income 29,278 78,566 803,943

Investment expenses:
Management fees 37,488 72,144 197,798
Individual General
Partners' compensation 50,500 72,339 49,839
Investment operations 148,847 229,887 1,230,263
Administrative and
investor services 914,923 695,074 668,059
Computer services 99,630 140,654 129,981
Professional fees 151,829 332,366 171,585
Interest expense 27,825 24,842 3,732
--------- -------- ---------
Total investment
expenses 1,431,042 1,567,306 2,451,257
--------- --------- ---------
Net investment loss (1,401,764) (1,488,740) (1,647,314)
--------- --------- ---------
Realized gain from
venture capital limited
partnership investments 18,036 295,343 911,025
Net realized (loss) gain
from sales of equity
investments (163,956) (346,759) 6,687,582
Realized gain from recovery
of investments previously
written off 356,841 47,540 --
Realized loss from
investment write-offs (4,848,611) (1,615,883) (4,119,073)
--------- --------- ---------
Net realized (loss) income (4,637,690) (1,619,759) 3,479,534
--------- --------- ---------

STATEMENTS OF OPERATIONS (continued)
- -----------------------------------
For the Years Ended December 31,
-----------------------------------
2002 2001 2000
------ ------ ------

(Increase) decrease in
unrealized depreciation:
Equity investments (2,249,130) (3,171,163) (1,875,962)
Notes receivable 4,874,425 (158,807) (4,726,055)
--------- --------- ---------
Net decrease (increase) in
unrealized depreciation 2,625,295 (3,329,970) (6,602,017)
--------- --------- ---------

Other income:
Income from extinguishment
of debt 571,478 -- --
Income from legal
proceedings 774,298 -- --
--------- --------- ---------
Total other income 1,345,776 -- --
--------- --------- ---------

Net decrease in partners'
capital resulting from
operations $(2,068,383) $(6,438,469) $(4,769,797)
========= ========= =========
Net decrease in partners'
capital resulting from
operations per Unit $ (4.36) $ (13.08) $ (8.97)
========= ========= =========

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

STATEMENTS OF PARTNERS' CAPITAL
- -------------------------------

For the years ended December 31, 2002, 2001 and 2000:

Limited General
Partners Partners Total
-------- -------- -----

Partners' capital,
January 1, 2000 $15,915,048 $ 272,029 $16,187,077

Net investment loss (1,317,851) (329,463) (1,647,314)
Net realized income 2,956,722 522,812 3,479,534
Net decrease in unrealized
appreciation (5,225,414) (1,376,603) (6,602,017)
Distributions -- (1,314,295) (1,314,295)
---------- --------- ----------
Partners' capital,
December 31, 2000 12,328,505 (2,225,520) 10,102,985

Net investment loss (1,190,992) (297,748) (1,488,740)
Net realized loss (1,239,692) (380,067) (1,619,759)
Net increase in unrealized
depreciation (2,802,613) (527,357) (3,329,970)
---------- --------- ----------
Partners' capital,
December 31, 2001 $ 7,095,208 $(3,430,692)$ 3,664,516

Net investment loss (1,121,412) (280,352) (1,401,764)
Net realized loss (3,706,726) (930,964) (4,637,690)
Net decrease in unrealized
depreciation 2,009,440 615,855 2,625,295
Other income 1,076,621 269,155 1,345,776
---------- --------- ----------
Partners' capital,
December 31, 2002 $ 5,353,131 $(3,756,998)$ 1,596,133
========== ========= ==========

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

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

For The Years Ended December 31,
---------------------------------
2002 2001 2000
-------- -------- --------

Net decrease in partners'
capital resulting from
operations $(2,068,383) $(6,438,469) $(4,769,797)

Adjustments to reconcile net
decrease in partners'
capital resulting from
operations to net cash used
by operating activities:
Net realized gain from
venture capital limited
partnership investments (18,036) (295,343) (911,025)
Net realized loss (gain) from
sales of equity investments 163,956 346,759 (6,687,582)
Realized loss from
investment write-offs 4,848,611 1,615,883 4,119,073
Realized gain from recovery
of investments previously
written off (356,841) (47,540) --
Income from extinguishment
of debt (571,478) -- --
Net increase (decrease)
unrealized depreciation:
Equity investments 2,249,130 3,171,163 1,875,962
Notes receivable (4,874,425) 158,807 4,726,055
Increase in accrued interest
on notes receivable (2,647) (14,738) (722,835)
Increase in prepaid
expenses (180,247) -- --
Increase in other receivable (774,298) -- --
(Decrease) increase in
accounts payable
and accrued expenses (45,487) 10,716 24,540
Increase (decrease) in due
to related parties 44,458 175,933 (6,657)
Other changes, net 21,767 (3,260) (6,321)
--------- --------- ---------
Net cash used by
operating activities (1,563,920) (1,320,089) (2,358,587)
--------- --------- ---------

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

For The Years Ended December 31,
---------------------------------
2002 2001 2000
-------- -------- --------

Cash flows from investing
activities:
Notes receivable issued -- (250,000) (4,013,615)
Purchase of equity investments (79,500) (108,000) (673,779)
Repayment of notes receivable 125,000 197,281 8,482
Proceeds from recovery of
investments previously
written off 363,976 47,540 --
Proceeds from sales of
equity investments -- 357,713 8,406,324
Distributions from venture
capital limited partnership
investments 18,036 4,888 350,819
--------- --------- ---------
Net cash provided
by investing activities 427,512 249,422 4,078,231
--------- --------- ---------
Cash flows from financing
activities:
Distributions to partners -- -- (1,314,295)
Proceeds from (repayments of)
short-term borrowings 1,147,180 (1,100,000) 1,100,000
--------- --------- ---------
Net cash provided (used) by
financing activities 1,147,180 (1,100,000) (214,295)
--------- --------- ---------
Net increase (decrease)
in cash and cash equivalents 10,772 (2,170,667) 1,505,349

Cash and cash equivalents
at beginning of year 11,967 2,182,634 677,285
--------- --------- ---------
Cash and cash equivalents
at end of year $ 22,739 $ 11,967 $ 2,182,634
========= ========= =========

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

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

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

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

Technology Funding Venture Partners IV, An Aggressive Growth Fund, L.P.
(the Partnership or the Registrant) 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 treated as a business
development company under the Investment Company Act of 1940, as amended
(the Act), and operates as a nondiversified investment company, as 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 two Individual General Partners. The Individual General
Partners and a representative from TFL constitute the Management Committee,
which is responsible for the management and administration of the
Partnership.

For the period from December 5, 1986, through November 14, 1988, the
Partnership was inactive. 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's original contributed capital was
$40,034,891, consisting of $39,994,896 from Limited Partners for 400,000
Units and $39,995 from General Partners. The General Partners do not own
any Units. The Partnership's term was extended for a two-year period to
December 31, 1999 pursuant to unanimous approval by the Management
Committee on December 5, 1997. In April 1999, the Management Committee
further extended the term of the Partnership to December 31, 2001. At a
special meeting on September 7, 2001, the Limited Partners elected to
extend the term of the Partnership to December 31, 2002 and for up to three
one-year extensions through December 31, 2005. On March 15, 2002, the
Management Committee unanimously approved a one-year extension of the
Partnership to December 31, 2003. On November 8, 2002, the Limited
Partners approved an additional one-year extension to the term of the
Partnership through December 31, 2006.

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

The accompanying financial statements have been prepared on the accrual
basis of accounting. The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires
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 income and expenses during the reporting period. Actual results
could differ from those estimates. Significant estimates include the
estimate of fair value of investments, liabilities and contingencies.
Because of the inherent uncertainty of valuation, the estimated fair value
of investments may differ significantly from the values that would have
been used had a ready market for investments existed, and the differences
could be material.

Uncertain Future of the Partnership
- -----------------------------------

The Partnership continues to experience decreases in partners' capital
resulting from overall market declines and from operations. For the year
ended December 31, 2002, the Partnership incurred a net decrease in
partners' capital of $2,249,130. In addition, the Partnership's liquid
assets, including unrestricted marketable equity investments, are not
adequate to fund on-going operations of the Partnership for 2003. These
factors, among others, raise substantial doubt about the Partnership's
ability to continue as a going concern. As a result, the Independent
General Partners have tasked the Managing General Partners with examining a
number of different options, including the possible early sale of some of
the Partnership's private holdings. The accompanying financial statements
do not include any adjustments that might result from the outcome of these
uncertainties.

Investments
- -----------

Investments are carried at fair value.

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

The Management Committee has the authority to establish valuation
procedures and periodically apply such procedures to the Partnership's
investment portfolio. In fulfilling this responsibility, the Managing
General Partners under the direction of the Management Committee
periodically update and revise the valuation procedures used to determine
fair value in order to reflect new events, changing market conditions, more
experience with investee companies or additional information, any of which
may require the revision of previous estimating procedures.

Unrestricted publicly traded securities are valued at the closing sales
price or bid price that is available on a national securities exchange or
over-the-counter market. Valuation discounts of 5 percent to 50 percent
are applied to publicly traded securities subject to resale restrictions
resulting from Rule 144 or contractual lock-ups, such as those commonly
associated with underwriting agreements or knowledge of material non-public
information.

The fair value of all other investments is determined in good faith by the
Managing General Partners under the direction of the Management Committee
after consideration of available relevant information. There is no ready
market for the Partnership's investments in private companies or
unregistered securities of public companies. Fair value is generally
defined as the amount the Partnership could reasonably expect to receive
for an investment in an orderly disposition based on a current sale.
Significant factors considered in the estimation of fair value include the
inherent illiquidity of and lack of marketability associated with venture
capital investments in private companies or unregistered securities, the
investee company's enterprise value established in the last round of
venture financing, changes in market conditions since the last round of
venture financing or since the last reporting period, the value of a
minority interest in the investee company, contractual restrictions on
resale typical of venture financing instruments, the investee company's
financial position and ability to obtain any necessary additional
financing, the investee company's performance as compared to its business
plan, and the investee company's progress towards initial public offering.
The values determined for the Partnership's investments in these securities
are based upon available information at the time the good faith valuations
are made and do not necessarily represent the amount which might ultimately
be realized, which could be higher or lower than the reported fair value.

At December 31, 2002 and 2001, the investment portfolio included
investments totaling $1,029,586 and $1,416,050, respectively, whose fair
values were established in good faith by the Managing General Partners
under the direction of the Management Committee in the absence of readily
ascertainable market values. In addition, investments in publicly traded
securities which have been subjected to a discount for legal or contractual
restrictions as determined by the Management Committee amounted to $71,805
and $1,276,476 at December 31, 2002 and 2001, respectively. Because of the
inherent uncertainty in the valuation, the values may differ significantly
from the values that would have been used had a ready market for the
securities existed, and the differences could be material.

Venture capital limited partnership investments are valued based on the
fair value of the underlying investments. Limited partnership
distributions that are a return of capital reduce the cost basis of the
Partnership's investment. Distributions from limited partnership
cumulative earnings are reflected as realized gains by the Partnership.

In the case of an other-than-temporary decline in value below cost basis,
an appropriate reduction in the cost basis is recognized as a realized loss
with the new cost basis being adjusted to equal the fair value of the
investment. Cost basis adjustments are reflected as "Realized loss from
investment write-offs" or "Net realized loss from venture capital limited
partnership investments" on the Statements of Operations.

Sales of equity investments are recorded on the trade date. The basis on
which cost is determined in computing realized gains or losses is specific
identification.

Notes Receivable
----------------

The fair value of notes receivable is determined in good faith by the
Managing General Partners under the direction of the Management Committee.
Fair value is generally defined as the amount the Partnership could
reasonably expect to receive for the notes and accrued interest on the
valuation date. The values determined for the Partnership's notes
receivable are based upon available information at the time the good faith
valuations are made and do not necessarily represent the amount which might
ultimately be realized which could be higher or lower than the reported
fair value. When the Managing General Partners' assessment of fair value
indicates that future collectability of interest or principal is in doubt,
notes are placed on nonaccrual status.

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.

Net Decrease in Partners' Capital Resulting from Operations Per Unit
- --------------------------------------------------------------------

Net decrease in partners' capital resulting from operations per Unit is
calculated by dividing the weighted average number of Units outstanding of
400,000 for the years ended December 31, 2002, 2001 and 2000, into the
total net decrease in partners' capital resulting from operations allocated
to the Limited Partners. The Managing General Partners contributed 0.1
percent of total Limited Partner capital contributions and did not receive
any Partnership Units.

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.

The accompanying financial statements are prepared using accounting
principles generally accepted in the United States which may not equate to
tax accounting. The cost of investments on a tax basis at December 31,
2002 and 2001, was $7,412,871 and $8,402,800, respectively. At December
31, 2002 and 2001, gross unrealized appreciation and depreciation on
investments based on cost for federal income tax purposes were as follows:

December 31, December 31,
2002 2001
------------ ------------

Unrealized appreciation $ 46,940 $ 1,241,560
Unrealized depreciation (5,922,113) (5,665,626)
--------- ---------
Net unrealized depreciation $(5,875,173) $(4,424,066)
========= =========

New Accounting Pronouncements
- -----------------------------

In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections ("SFAS No. 145"). SFAS No. 145 requires that gains and losses
from extinguishment of debt be classified as extraordinary items only if
they meet the criteria in Accounting Principles Board Opinion No. 30
("Opinion No. 30"). Applying the provisions of Opinion No. 30 will
distinguish transactions that are part of an entity's recurring operations
from those that are unusual and infrequent and meet the criteria for
classification as an extraordinary item. SFAS No. 145 is effective for the
Partnership beginning January 1, 2003. However, early adoption is
encouraged and therefore the Partnership has adopted SFAS No. 145 as of the
year ended December 31, 2002.

In July 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with Exit or Disposal Activities ("SFAS No. 146"). SFAS No. 146 addresses
financial accounting and reporting for costs associated with exit or
disposal activities, such as restructurings, involuntarily terminating
employees, and consolidating facilities initiated after December 31, 2002.
The implementation of SFAS No. 146 will not require the restatement of
previously issued financial statements. The Partnership has implemented
early adoption of SFAS No. 146 to all applicable costs associated with exit
or disposal activities occurring after December 31, 2002.

2. Related Party Transactions
--------------------------

Related party costs are included in costs and expenses shown on the
Statements of Operations. Related party costs in 2002, 2001 and 2000 were
as follows:

For the Years Ended December 31,
-------------------------------------
2002 2001 2000
------ ------ ------

Management fees $ 37,488 $ 72,144 $ 197,798
Individual General
Partners' compensation 50,500 72,339 49,839
Reimbursable operating
expenses:
Investment operations 133,611 122,825 1,220,960
Administrative and
investor services 818,372 498,326 395,955
Computer services 99,630 140,654 129,981

Management fees are equal to one quarter of one percent of the fair value
of Partnership assets for each quarter. 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 $3,338 and $7,002
and were included in due to related parties at December 31, 2002 and 2001,
respectively.

As compensation for their services, the Individual General Partners each
receive $14,000 annually, plus $1,500 for attendance at each meeting of the
Management Committee and committees thereof. The Individual General
Partners are reimbursed for all out-of-pocket expenses relating to
attendance of the meetings, committees or otherwise of the Management
Committee. The two Individual General Partners each own twenty 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.
There were $282,288 and $230,828 of such reimbursable expenses due to
related parties at December 31, 2002 and 2001, respectively.

The Managing General Partners allocate operating expenses incurred in
connection with the business of the Partnership based on employee hours
incurred. In 2002 the Managing General Partners billed the Partnership
$58,593, $10,183 and $7,637 for operating expenses incurred during 2001,
2000 and prior years, respectively. In 2000, the Managing General Partners
billed the Partnership an additional $828,950 for investment management
expenses of prior years that were incurred by the General Partners but not
previously billed to the Partnership. Had the additional expenses been
billed in the years in which they were incurred, the investment expenses
for 2002, 2001 and 2000 would have been $1,354,629, $1,625,899 and
$1,802,954, respectively.

In December 2000, the Limited Partners of the Partnership approved an
amendment to the Partnership Agreement so that the salary and benefits of a
controlling person of a Managing General Partner directly involved in
carrying out the business of the Partnership are expenses of the
Partnership. This resulted in additional operating expenses in 2000 of
$58,052.

Retention bonuses were offered to and accepted by key employees of the
Managing General Partners in late 2002. The expense for these bonuses,
which were approved by the Individual General Partners during the September
2002 Management Committee meeting, was prepaid by the Partnership in
October and December 2002. The amount of prepaid operating expenses was
$186,180. The bonuses, incremented by annual salary increases, will be
paid to those individuals who are still full-time employees of the Managing
General Partners in April 2007. Upon the resignation of personnel no
adjustment to the retention bonus amount previously paid by the Partnership
to the Managing General Partners shall occur until a replacement person is
hired.

Officers of the Managing General Partners occasionally receive stock
options as compensation for serving on the Boards of Directors of portfolio
companies. It is the Managing General Partners' policy that all such
compensation be transferred to the investing partnerships. If the options
are non-transferable, they are not recorded as an asset of the Partnership.
Any profit from the exercise of such options will be transferred if and
when the options are exercised and the underlying stock is sold by the
officers. Any such profit is allocated amongst the Partnership and
affiliated partnerships based upon their proportionate investment in the
portfolio company. At December 31, 2002, the Partnership and affiliated
partnerships had an indirect interest in non-transferable Physiometrix,
Inc., Endocare, Inc. and GenStar Therapeutics Corporation options with a
fair value of $50.

3. Allocation of Profits and Losses
--------------------------------

In accordance with the Partnership Agreement (see Note 1), net profits and
losses of the Partnership are allocated based on the beginning-of-the-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 decrease in partners' capital resulting from
operations and sales commissions previously allocated
under (b)(ii) below; then

(iii) 75 percent to the Limited Partners as a group in proportion
to the number of Units held, 5 percent to the Limited Partners
in proportion to the Unit Months of each Limited Partner,
and 20 percent 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 percent to the Limited Partners and 1 percent 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 99
percent to the Limited Partners and 1 percent to the Managing General
Partners.

In no event are the Managing General Partners allocated less than 1 percent
of the net realized profit or loss of the Partnership.

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

All investments are valued at fair value as determined in good faith by the
Managing General Partners. See Note 1 - Investments.

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

At December 31, 2002 and 2001, marketable equity securities had aggregate
costs of $464,958, and aggregate fair market values of $126,932 and
$392,015, respectively. The net unrealized loss at December 31, 2002 and
2001, included gross gains of $15,942 and $234,990, respectively.

Restricted Securities
- ---------------------

At December 31, 2002 and 2001, restricted securities had aggregate costs of
$4,861,983 and $4,946,945 and aggregate fair values of $1,408,159 and
$3,477,168, respectively, representing 88.2 percent and 94.9 percent,
respectively, of the net assets of the Partnership.

Significant purchases, sales and write-offs of equity investments during
2002 are as follows:

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

In December 2002 the Partnership recorded a loss of $163,874 due to the
release of its investment in Endocare, Inc. to a financial institution to
which the shares were pledged. (See Note 8.)

Sunpower Corporation
- --------------------

The company converted the Partnership's preferred shares into 1,165,217
common shares in August 2002.

WorldRes, Inc.
- --------------

In April 2002, the Partnership issued a convertible note for $79,500 to the
company with an interest rate equal to prime plus 4 percent. The note and
accrued interest are due in April 2003.

Venture Capital Limited Partnership Investments
- -----------------------------------------------
In the year ended December 31, 2002, the Partnership received cash
distributions of $18,036. The Partnership recorded a $477,874 decrease in
fair value primarily as a result of a net decrease in the fair value of the
underlying investments of the partnerships.

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

Other significant changes reflected above relate to market value
fluctuations for publicly traded portfolio companies or changes in the fair
value of private companies as determined in accordance with the policy
described in Note 1 to the financial statements.

5. Net Increase in Unrealized Depreciation of Equity Investments
-------------------------------------------------------------

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

For the Years Ended December 31,
----------------------------------
2002 2001 2000
------ ------ ------

Unrealized (depreciation)
appreciation from cost of
marketable equity securities $ (338,026) $ (72,943) $ 1,246,590

Unrealized (depreciation)
appreciation from cost of
non-marketable equity
securities (3,453,824) (1,469,777) 381,853
--------- --------- ---------
Unrealized (depreciation)
appreciation from cost at
end of year (3,791,850) (1,542,720) 1,628,443

Unrealized (depreciation)
appreciation from cost at
beginning of year (1,542,720) 1,628,443 3,504,405
--------- --------- ---------
Net increase in unrealized
depreciation of equity
investments $(2,249,130) $(3,171,163) $(1,875,962)
========= ========= =========

6. Notes Receivable
----------------

Activity from January 1 through December 31 consisted of:

2002 2001
------ ------

Balance, beginning of year $ 109,551 $220,252

Notes receivable issued -- 250,000
Notes receivable written off (4,848,611) --
Repayments of notes receivable (125,000) (197,281)
Change in accrued interest (7,758) (4,613)
Net decrease (increase) in unrealized
depreciation of notes receivable 4,874,425 (158,807)
--------- -------
Balance, end of year $ 2,607 $109,551
========= =======

The interest rate on notes receivable at December 31, 2002, was 16 percent.
All notes and accrued interest are due 2004.

In April 2002, the Partnership received a $125,000 payment on a $250,000
note receivable from Thermatrix Inc. Accrued interest of $23,178 was paid
in full. The remaining portion of the note, $125,000, was written off.
During the third quarter of 2002, the Partnership recovered from Thermatrix
Inc. $125,000 for the portion of the note written off.

In September 2002, notes receivable and accrued interest due from Sutmyn
Storage Corporation in the amount of $4,723,611 were written off. The fair
value of these notes was reduced to zero during 2000 and it has been
determined by the Managing General Partners that there will be no recovery
on the notes as the company has ceased operations.

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

Cash and cash equivalents at December 31, 2002 and 2001, consisted of:

2002 2001
------ ------

Demand accounts $21,398 $10,009
Money-market accounts 1,341 1,958
------ ------
Total $22,739 $11,967
====== ======

8. Borrowings
----------

In January 2002, the Partnership borrowed $562,968 and $584,212 from a
financial institution and pledged its shares in Endocare, Inc. and GenStar
Therapeutic Corporation as collateral, respectively. Due to the value of
Endocare, Inc. dropping below 10 percent of the face value of the note, the
note is currently in default. As a result, the financial institution that
issued the note in exchange for the Partnership's pledge of Endocare, Inc.
shares is now entitled to own the Endocare, Inc. shares. With the release
of the shares to the financial institution, the Partnership's obligation to
satisfy the note is fulfilled and the Partnership has recorded income of
$571,478, which includes the value of the note and accrued interest payable
of $8,510. The Partnership also recorded a loss on the sale of equity
investments of $163,874 due to the release of the Endocare, Inc. shares.
The remaining note bears interest at the London Interbank Offered Rate plus
1.5 percent, which is payable quarterly. The outstanding principal and any
remaining accrued interest are due December 30, 2004.

In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections ("SFAS No. 145"). SFAS No. 145 requires that gains and losses
from extinguishment of debt be classified as extraordinary items only if
they meet the criteria in Accounting Principles Board Opinion No. 30
("Opinion No. 30"). Applying the provisions of Opinion No. 30 will
distinguish transactions that are part of an entity's recurring operations
from those that are unusual and infrequent and meet the criteria for
classification as an extraordinary item. SFAS No. 145 is effective for the
Partnership beginning January 1, 2003. However, early adoption is
encouraged and therefore the partnership has adopted SFAS No. 145 as of the
year ended December 31, 2002.

9. Distributions
-------------

There were no distributions in 2002 or 2001. In the second quarter of
2000, a tax distribution totaling $1,314,295 was declared and paid to the
General Partners.

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

From time to time the Partnership becomes 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 investment
fundings, 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, 2002,
there were no such unfunded commitments.

In October 2000, Kanematsu Corporation, a creditor of one of the
Partnership's portfolio companies, initiated an arbitration proceeding
against the Partnership, two affiliated partnerships, and a fourth co-
investor. Kanematsu was seeking to recover $2,000,000, the purchase price
in a contract by which the Partnership and the other entities were alleged
to have agreed to purchase certain debt securities of the portfolio company
from Kanematsu. The Partnership and affiliated partnerships asserted
counterclaims against Kanematsu. On February 12, 2002, the Partnership,
affiliated partnerships and the co-investor were awarded $4,000,000 and all
of Kanematsu's claims were denied. The award is in full settlement of all
claims and counterclaims. The Partnership recognized revenue and a
receivable of $666,667 as of February 12, 2002, for its proportionate share
of the award. Kanematsu immediately filed a petition to vacate the award,
and on October 9, 2002 the United States District Court issued an order
confirming the arbitration award. Kanematsu appealed the order but in
early November 2002 paid a forbearance fee of $200,000 in exchange for an
option to settle all liabilities. On November 29, 2002, Kanematsu agreed
to settle for $3,999,999. A decision on the allocation of the proceeds
between the Partnership, affiliates and co-investor was reached in January
2003; however, a dispute of the legal fee has arisen. The Partnership
received $774,298 on February 13, 2003, which represents its proportionate
share of the settlement, less disputed legal fees, plus accrued interest.
The Partnership recognized the additional revenue and receivable of
$107,631 at December 31, 2002. Legal counsel for the Partnership is
actively seeking to resolve the fee dispute and recover the remaining
settlement proceeds for the Partnership. The Partnership is unable to
determine the amount of remaining settlement proceeds or disputed legal
fees as of December 31, 2002.

From time to time, the Partnership is subject to routine litigation
incidental to the business of the Partnership. Although there can be no
assurances as to the ultimate disposition of these matters and the
proceeding disclosed above, it is the opinion of the Managing General
Partners, based upon the information available at this time, that the
expected outcome of these matters, individually or in the aggregate, will
not have a material adverse effect on the results of operations and
financial condition of the Partnership.

11. Financial Highlights
--------------------

For The Years Ended December 31,
-----------------------------------
2002 2001 2000
------ ------ ------

(all amounts on a per Unit basis)
Net asset value,
beginning of period $ 9.76 $13.67 $28.66

Loss from investment
operations:
Net investment loss ( .11) (2.98) (3.29)
Net realized and unrealized
loss on investments (4.24) (10.11) (5.67)
----- ----- -----
Total from investment
operations (4.36) (13.08) (8.97)
----- ----- -----
Net asset value, end of period $ 5.40 $ 0.59 $19.69
===== ===== =====

Total Return (44.63)% (95.72)% (31.29)%

Ratios to average net assets:

Net investment loss ( 1.48)% (41.78)% (13.63)%

Expenses 47.20% 54.98% 25.35%

Pursuant to the Partnership Agreement, net profit shall be allocated first
to those Partners with deficit capital account balances until such deficits
have been eliminated. The net asset values shown above assume the
Partnership is in liquidation. Upon liquidation, the General Partners
would contribute capital equal to the amount of the Limited Partners
deficit. As of December 31, 2002, the General Partners have a negative
capital balance of $3,756,998. Upon liquidation, the General Partners would
be required to contribute cash in the amount of $2,160,865, which equals
the net asset value less the General Partners' negative capital balance.
Net asset value has been calculated in accordance with this provision of
the Partnership Agreement.

SIGNATURES
----------

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.

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

By: TECHNOLOGY FUNDING INC.
TECHNOLOGY FUNDING LTD.
Managing General Partners

Date: March 25, 2003 By: /s/Charles R. Kokesh
--------------------------------
Charles R. Kokesh
President, Chief Executive Officer,
Chief Financial Officer and
Chairman of Technology Funding Inc.
and Managing General Partner of
Technology Funding Ltd.

Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report on Form 10-K has been signed 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 25, 2003
- ------------------------ Executive Officer,
Charles R. Kokesh Chief Financial Officer,
and Chairman of
Technology Funding Inc.
and Managing General
Partner of Technology
Funding Ltd.

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

CERTIFICATIONS
--------------

I, Charles R. Kokesh, President, Chief Executive Officer, Chief Financial
Officer and Chairman of Technology Funding Inc. and Managing General
Partner of Technology Funding Ltd., certify that:

1. I have reviewed this annual report on Form 10-K of Technology Funding
Partners IV, L.P.;
2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this annual report;
4. I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant is made known to me by others within
the entity, particularly during the period in which this annual report is
being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
annual report (the Evaluation Date); and
c) presented in this annual report my conclusions about the effectiveness
of the disclosure controls and procedures based on my evaluation as of the
Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the
registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. I have indicated in this annual report whether or not there were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of my most
recent evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.

Date: March 25, 2003 By: /s/Charles R. Kokesh
--------------------------------
Charles R. Kokesh
President, Chief Executive
Officer, Chief Financial
Officer and Chairman of
Technology Funding Inc. and
Managing General Partner of
Technology Funding Ltd.
Technology Funding Partners IV, L.P. 9:06 AM 03/25/03
(a Delaware limited partnership)

Page 31 of 55
Technology Funding Partners IV, L.P.
(a Delaware limited partnership)

Technology Funding Partners IV, L.P.
(a Delaware limited partnership)

Technology Funding Partners IV, L.P.
(a Delaware limited partnership)