UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number		811-09116
Van Wagoner Funds, Inc.
(Exact name of registrant as specified in charter)
3 Embarcadero Center, Suite 1120 San Francisco, CA				94111
(Address of principal executive offices)				(Zip code)
Susan Freund 3 Embarcadero Center, Suite 1120 San Francisco, CA  94111
(Name and address of agent for service)
Registrant’s telephone number, including area code:			415-835-5000
Date of fiscal year end:	December 31
Date of reporting period:	December 31, 2007

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

Annual Report

December 31, 2007

Small-Cap Growth Fund

Growth Opportunities Fund

Emerging Growth Fund

This report is submitted for the general information of shareholders of Van Wagoner Funds. It is not authorized for distribution to prospective investors unless accompanied or preceded by an effective Prospectus for the Funds. The Prospectus gives details about charges, investment objectives, risks and operating policies of the Funds. Read the Prospectus carefully.

Van Wagoner Funds are distributed by PFPC Distributors, Inc., 760 Moore Road, King of Prussia,
PA 19406

Van Wagoner Funds Annual Report

Dear Fellow Shareholders:

2007 was quite a year. During the past twelve months, the markets faced the subprime market meltdown, the housing market's decline, the dollar devaluing to its lowest point in over ten years, weaker than hoped for consumer spending and slowing corporate spending.

The year started off fairly weak with the first quarter posting relatively flat returns. By mid-year, the market had improved somewhat and seemed to be progressing nicely. The third quarter brought more positive returns and we seemed poised to end the year on a positive note. Then, by October, most major market indices had reached a high water mark. November brought credit market turmoil, increasing worries over housing's impact on US consumer spending and a rash of charge-offs by many of the world's largest banks.

The year ended with the S&P 500 Index returning 5.49%, the Nasdaq Composite Index returning 13.65% and the Van Wagoner Funds posting returns of -9.03% for the Small-Cap Growth Fund, -11.29% for the Growth Opportunities Fund and -7.83% for the Emerging Growth Fund.

The year ended on quite a sour note and we were very disappointed with the year to date performance of the Van Wagoner Funds. The Funds had been performing nicely through November when the markets really took a turn for the worse. The smaller companies that the Funds' invest in took an unnecessary beating. We believe in the companies we are invested in and think they offer the potential for significant performance. They have been weighed down by all the factors affecting the economy.

Despite all the turbulence in the markets, the Van Wagoner Funds stuck to their investment strategies and maintained their focus on the small, emerging technology sector. The investment themes we have been invested in over the last 1-2 years have remained the same—network storage, multi-media, semiconductors. Previously, we've discussed two major trends in technology that we continue to see evolve. The first trend is the convergence of services/capabilities found in the 'all in one' devices that include text, phone, camera, video, email, and internet access. The second trend is the build out of technology infrastructure as companies compete for the home market—hi speed, DSL, cable, phone, video on demand, etc. The network capacity, as well as the related equipment and services, needed to deliver these services to consumers have continued to grow.

Our investment in information technology also plays into global investing as the companies which make up the technology sectors receive more than 50% of their revenue from abroad and are a prime beneficiary of global economic growth. China and India continue to upgrade their infrastructures and are attempting to increase productivity—especially with the 2008 Beijing Olympics looming. We take a long term view and believe technology will continue to benefit.

For the most part, company fundamentals are solid, as companies avoid the excesses of the late 1990s. Slowing corporate spending will have an impact on the performance of the technology sector, but the long term outlook remains strong. The firms are undervalued, have strong fundamentals and healthy product/service outlooks. The trends should have much further to run as both developing and developed nations continue to pursue more advanced communications.

As we look to 2008, we will continue to stay the course and invest in the companies we feel are the best and brightest in their industries. The overall investment themes should remain similar as we

Van Wagoner Funds Annual Report

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Van Wagoner Funds Annual Report

continue to focus on technology and the opportunities the sector provides.

Sincerely,

Garrett R. Van Wagoner
Portfolio Manager
Van Wagoner Capital Management, Inc.

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2

Van Wagoner Funds Performance

Small-Cap Growth Fund — Inception Date 12/31/1995

Average Annual Total Return for the periods ended 12/31/07
	One Year			Five Years			Ten Years
		(9.03	)%		(0.38	)%		(0.01	)%

The performance figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns reflect fee waivers in effect. In the absence of fee waivers, total return would have been reduced. There were no fee waivers for the period January 1, 2004 to June 30, 2006. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.vanwagoner.com

The chart below assumes an initial investment of $10,000 made on 12/31/97. Returns shown above and in the chart below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Investments made in small capitalization companies involve additional risks including greater volatility and less liquidity.

The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. Indexes are unmanaged and investors cannot invest in them.

The S&P SmallCap 600 Index is a capitalization-weighted index that measures the performance of selected U.S. stocks with a small market capitalization. Indexes are unmanaged and investors cannot invest in them.

Van Wagoner Funds Performance  

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Van Wagoner Funds Performance

Growth Opportunities Fund — Inception Date 3/1/2003

Average Annual Total Return for the periods ended 12/31/07
	One Year			Since Inception
		(11.29	)%		1.03	%

The performance figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns reflect fee waivers in effect. In the absence of fee waivers, total return would have been reduced. There were no fee waivers for the period January 1, 2004 to June 30, 2006. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.vanwagoner.com

The chart below assumes an initial investment of $10,000 made on 3/1/03 (inception date). Returns shown above and in the table below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. The growth companies in which the Fund invests may be developing or changing. These companies are more sensitive to changes in economic conditions and may be subject to greater volatility.

The S&P MidCap 400 Index is an index of mid-capitalization U.S. stocks that measures the performance of the mid-size company segment of the U.S. market. Indexes are unmanaged and investors cannot invest in them.

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Emerging Growth Fund — Inception Date 12/31/1995

Average Annual Total Return for the periods ended 12/31/07
	One Year			Five Years			Ten Years
		(7.83	)%		(0.37	)%		(7.31	)%

The performance figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns reflect fee waivers in effect. In the absence of fee waivers, total return would have been reduced. There were no fee waivers for the period September 1, 2003 to June 30, 2006. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit our website at www.vanwagoner.com

The chart below assumes an initial investment of $10,000 made on 12/31/97. Returns shown above and in the chart below do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Investments made in small-cap and mid-cap companies which may be in their developmental stage or undergoing significant changes may be subject to greater business risks and more volatility.

The Nasdaq Composite Index is a broad based capitalization weighted index of all Nasdaq-listed companies. Indexes are unmanaged and investors cannot invest in them.

Van Wagoner Funds Performance  

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Van Wagoner Funds Portfolio Holdings Summary

Sector Weightings (Unaudited)

As of December 31, 2007, the Van Wagoner Funds' portfolios were invested in the following sectors:

Small-Cap Growth Fund
Common Stocks
Information Technology	90.43	%
Consumer Discretionary	5.59
Financials	1.22
Health Care	1.10
Short-Term Investments	1.66
Total	100.00	%
Growth Opportunities Fund
Common Stocks
Information Technology	91.27	%
Consumer Discretionary	5.38
Financials	1.15
Health Care	1.09
Short-Term Investments	1.11
Total	100.00	%

Emerging Growth Fund
Common Stocks
Information Technology	90.07	%
Consumer Discretionary	5.42
Health Care	1.21
Financials	1.07
Short-Term Investments	2.23
Total	100.00	%

As a percentage of total investments as of December 31, 2007. Holdings are subject to change.

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Van Wagoner Funds Expense Example (Unaudited)

We believe it is important for shareholders to have a clear understanding of Fund expenses and the impact they can have on investment return. The following example is presented to illustrate a shareholder's cost of owning the Van Wagoner Funds.

Example

As a shareholder of the Van Wagoner Funds, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. The Funds currently do not charge any transaction costs, such as sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; or exchange fees. This example is intended to help you understand your ongoing costs (in dollars) of investing in each of the Funds and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2007 to December 31, 2007.

Actual Expenses

The first line of the table below for each Fund provides information about actual account values and actual expenses. You may use the information in each of these lines, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period in each Fund.

Hypothetical Example For Comparison Purposes

The second line of the table below for each Fund provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in each of the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only in each of the Funds. Therefore, the second line of the table for each Fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	For the Period July 1, 2007 to December 31, 2007
Small-Cap Growth Fund	Beginning Account Value 7/1/2007		Ending Account Value 12/31/2007		Annualized Expense Ratio			Expenses Paid During Period*
Actual Fund Return	$	1,000.00	$	887.70		6.05	%	$	28.61
Hypothetical 5% Return	$	1,000.00	$	994.75		6.05	%	$	30.24
Growth Opportunities Fund
Actual Fund Return	$	1,000.00	$	875.60		6.82	%	$	32.06
Hypothetical 5% Return	$	1,000.00	$	990.88		6.82	%	$	34.03
Emerging Growth Fund
Actual Fund Return	$	1,000.00	$	898.30		5.14	%	$	24.47
Hypothetical 5% Return	$	1,000.00	$	999.29		5.14	%	$	25.77

*Expenses are equal to the Fund's annualized expense ratio as indicated above,multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

Van Wagoner Funds Expense Example  

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Van Wagoner Funds Schedule of Investments

Van Wagoner Small-Cap Growth Fund December 31, 2007

Number of Shares			Market Value
COMMON STOCKS 99.95%
		Cellular Telecommunications 1.67%
	73,500	Airspan Networks, Inc.*	$	129,360
		Computers - Integrated Systems 2.58%
	7,500	Riverbed Technology, Inc.*		200,550
		Computers & Peripherals 7.93%
	17,500	3PAR, Inc.*		224,000
	7,000	Data Domain, Inc.*		184,380
	15,000	Netezza Corp.*		207,000
				615,380
		Electronic Components - Semiconductor 2.61%
	85,000	Bookham, Inc.*		202,300
		Electronic Design Automation 1.56%
	7,500	Comtech Group, Inc.*		120,825
		Insurance Brokers 1.24%
	3,000	eHealth, Inc.*		96,330
		Internet Software & Services 16.66%
	36,000	AsiaInfo Holdings, Inc.*		396,000
	17,000	GigaMedia Ltd.*		318,750
	2,500	Mercadolibre, Inc.*		184,700
	15,600	NaviSite, Inc.*		78,936
	3,500	Omniture, Inc.*		116,515
	2,000	SINA Corp. (China)*		88,620
	2,000	Sohu.com, Inc.*		109,040
				1,292,561
		Medical Information Systems 1.12%
	4,000	Phase Forward, Inc.*		87,000
		Networking Products 11.07%
	14,000	Acme Packet, Inc.*		176,260
	10,500	Foundry Networks, Inc.*		183,960
	15,000	Infinera Corp.*		222,600
	10,500	Starent Networks Corp.*		191,625
	17,500	Veraz Networks, Inc.*		84,350
				858,795

Number of Shares			Market Value
		Retail - Jewelery 1.60%
	15,000	Fuqi International, Inc.*	$	124,500
		Semiconductor & Semiconductor Equipment 23.27%
	25,000	ANADIGICS, Inc.*		289,250
	26,250	Applied Micro Circuits Corp.*		229,425
	4,500	Atheros Communications, Inc.*		137,430
	7,000	Cavium Networks, Inc.*		161,140
	32,600	EMCORE Corp.*		498,780
	5,250	FormFactor, Inc.*		173,775
	5,500	Mellanox Technologies Ltd.*		100,210
	3,500	NetLogic Microsystems, Inc.*		112,700
	11,000	PLX Technology, Inc.*		102,300
				1,805,010
		Software & Services 12.10%
	7,500	CommVault Systems, Inc.*		158,850
	2,500	Ctrip.com International Ltd. ADR		143,675
	4,000	Interactive Intelligence, Inc.*		105,400
	4,250	Nuance Communications, Inc.*		79,390
	10,000	Phoenix Technologies Ltd.*		128,800
	1,500	Priceline.com, Inc.*		172,290
	4,250	Synchronoss Technologies, Inc.*		150,620
				939,025
		Telecommunication Equipment 9.83%
	25,000	Opnext, Inc.*		221,250
	6,500	ShoreTel, Inc.*		90,805
	220,000	Sunrise Telecom, Inc.*		451,000
				763,055
		Telecommunication Equipment - Fiber Optics 2.20%
	5,000	Ciena Corp.*		170,550
		Wireless Equipment 4.51%
	12,500	Aruba Networks, Inc.*		186,375
	16,500	Ceragon Networks Ltd.*		163,185
				349,560
		Total Common Stocks (Cost $6,763,715)		7,754,801

See notes to financial statements.

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Van Wagoner Small-Cap Growth Fund (cont'd.) December 31, 2007

	Market Value
SHORT-TERM INVESTMENT 1.69%
PNC Bank Money Market Account, 3.99%	$	130,939
Total Short-Term Investment (Cost $130,939)		130,939
Total Investments 101.64% (Cost $6,894,654)		7,885,740
Liabilities in Excess of Other Assets (1.64)%		(127,444	)
NET ASSETS 100.00%	$	7,758,296

*  Non-income producing.

ADR  American-Depository Receipt

Van Wagoner Funds Schedule of Investments

See notes to financial statements.

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Van Wagoner Funds Schedule of Investments

Van Wagoner Growth Opportunities Fund December 31, 2007

Number of Shares			Market Value
COMMON STOCKS 100.94%
		Cellular Telecommunications 1.68%
	65,600	Airspan Networks, Inc.*	$	115,456
		Computers - Integrated Systems 2.54%
	6,500	Riverbed Technology, Inc.*		173,810
		Computers & Peripherals 8.00%
	16,000	3PAR, Inc.*		204,800
	6,500	Data Domain, Inc.*		171,210
	12,500	Netezza Corp.*		172,500
				548,510
		Electronic Components - Semiconductor 2.60%
	75,000	Bookham, Inc.*		178,500
		Electronic Design Automation 1.65%
	7,000	Comtech Group, Inc.*		112,770
		Insurance Brokers 1.17%
	2,500	eHealth, Inc.*		80,275
		Internet Software & Services 17.07%
	32,500	AsiaInfo Holdings, Inc.*		357,500
	15,000	GigaMedia Ltd.*		281,250
	2,250	Mercadolibre, Inc.*		166,230
	13,400	NaviSite, Inc.*		67,804
	3,000	Omniture, Inc.*		99,870
	2,000	SINA Corp. (China)*		88,620
	2,000	Sohu.com, Inc.*		109,040
				1,170,314
		Medical Information Systems 1.11%
	3,500	Phase Forward, Inc.*		76,125
		Networking Products 10.88%
	12,500	Acme Packet, Inc.*		157,375
	9,500	Foundry Networks, Inc.*		166,440
	12,500	Infinera Corp.*		185,500
	9,000	Starent Networks Corp.*		164,250
	15,000	Veraz Networks, Inc.*		72,300
				745,865

Number of Shares			Market Value
		Retail - Jewelery 1.51%
	12,500	Fuqi International, Inc.*	$	103,750
		Semiconductor & Semiconductor Equipment 23.26%
	22,500	ANADIGICS, Inc.*		260,325
	23,750	Applied Micro Circuits Corp.*		207,575
	4,000	Atheros Communications, Inc.*		122,160
	6,250	Cavium Networks, Inc.*		143,875
	27,600	EMCORE Corp.*		422,280
	4,750	FormFactor, Inc.*		157,225
	5,000	Mellanox Technologies Ltd.*		91,100
	3,000	NetLogic Microsystems, Inc.*		96,600
	10,000	PLX Technology, Inc.*		93,000
				1,594,140
		Software & Services 12.28%
	7,500	CommVault Systems, Inc.*		158,850
	2,250	Ctrip.com International Ltd. ADR		129,308
	3,000	Interactive Intelligence, Inc.*		79,050
	4,250	Nuance Communications, Inc.*		79,390
	8,500	Phoenix Technologies Ltd.*		109,480
	1,250	Priceline.com, Inc.*		143,575
	4,000	Synchronoss Technologies, Inc.*		141,760
				841,413
		Telecommunication Equipment 10.28%
	22,500	Opnext, Inc.*		199,125
	6,000	ShoreTel, Inc.*		83,820
	205,800	Sunrise Telecom, Inc.*		421,890
				704,835
		Telecommunication Equipment - Fiber Optics 2.24%
	4,500	Ciena Corp.*		153,495
		Wireless Equipment 4.67%
	11,500	Aruba Networks, Inc.*		171,465
	15,000	Ceragon Networks Ltd.*		148,350
				319,815
		Total Common Stocks (Cost $6,082,351)		6,919,073

See notes to financial statements.

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Van Wagoner Growth Opportunities Fund (cont'd.) December 31, 2007

	Market Value
SHORT-TERM INVESTMENT 1.13%
PNC Bank Money Market Account, 3.99%	$	77,645
Total Short-Term Investment (Cost $77,645)		77,645
Total Investments 102.07% (Cost $6,159,996)		6,996,718
Liabilities in Excess of Other Assets (2.07)%		(141,993	)
NET ASSETS 100.00%	$	6,854,725

*  Non-income producing.

ADR  American-Depository Receipt

Van Wagoner Funds Schedule of Investments

See notes to financial statements.

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Van Wagoner Funds Schedule of Investments

Van Wagoner Emerging Growth Fund December 31, 2007

Number of Shares			Market Value
COMMON STOCKS 99.27%
		Cellular Telecommunications 1.61%
	203,087	Airspan Networks, Inc.*	$	357,433
		Computers - Integrated Systems 2.41%
	20,000	Riverbed Technology, Inc.*		534,800
		Computers & Peripherals 7.74%
	50,000	3PAR, Inc.*		640,000
	20,000	Data Domain, Inc.*		526,800
	40,000	Netezza Corp.*		552,000
				1,718,800
		Electronic Components - Semiconductor 2.57%
	240,000	Bookham, Inc.*		571,200
		Electronic Design Automation 1.56%
	21,500	Comtech Group, Inc.*		346,365
		Insurance Brokers 1.08%
	7,500	eHealth, Inc.*		240,825
		Internet Software & Services 16.81%
	102,500	AsiaInfo Holdings, Inc.*		1,127,500
	50,000	GigaMedia Ltd.*		937,500
	7,000	Mercadolibre, Inc.*		517,160
	44,800	NaviSite, Inc.*		226,688
	10,000	Omniture, Inc.*		332,900
	6,000	SINA Corp. (China)*		265,860
	6,000	Sohu.com, Inc.*		327,120
				3,734,728
		Medical Information Systems 1.22%
	12,500	Phase Forward, Inc.*		271,875
		Networking Products 10.69%
	40,000	Acme Packet, Inc.*		503,600
	30,000	Foundry Networks, Inc.*		525,600
	40,000	Infinera Corp.*		593,600
	28,000	Starent Networks Corp.*		511,000
	50,000	Veraz Networks, Inc.*		241,000
				2,374,800

Number of Shares			Market Value
		Retail - Jewelery 1.50%
	40,000	Fuqi International, Inc.*	$	332,000
		Semiconductor & Semiconductor Equipment 22.98%
	70,000	ANADIGICS, Inc.*		809,900
	75,000	Applied Micro Circuits Corp.*		655,500
	12,500	Atheros Communications, Inc.*		381,750
	20,000	Cavium Networks, Inc.*		460,400
	89,800	EMCORE Corp.*		1,373,940
	15,000	FormFactor, Inc.*		496,500
	16,500	Mellanox Technologies Ltd.*		300,630
	10,000	NetLogic Microsystems, Inc.*		322,000
	32,500	PLX Technology, Inc.*		302,250
				5,102,870
		Software & Services 12.22%
	25,000	CommVault Systems, Inc.*		529,500
	7,500	Ctrip.com International Ltd. ADR		431,025
	10,000	Interactive Intelligence, Inc.*		263,500
	12,500	Nuance Communications, Inc.*		233,500
	27,500	Phoenix Technologies Ltd.*		354,200
	4,000	Priceline.com, Inc.*		459,440
	12,500	Synchronoss Technologies, Inc.*		443,000
				2,714,165
		Telecommunication Equipment 9.95%
	70,000	Opnext, Inc.*		619,500
	20,000	ShoreTel, Inc.*		279,400
	639,700	Sunrise Telecom, Inc.*		1,311,385
				2,210,285
		Telecommunication Equipment - Fiber Optics 2.30%
	15,000	Ciena Corp.*		511,650
		Wireless Equipment 4.63%
	37,500	Aruba Networks, Inc.*		559,125
	47,500	Ceragon Networks Ltd.*		469,775
				1,028,900
		Total Common Stocks (Cost $19,144,890)		22,050,696

See notes to financial statements.

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Van Wagoner Emerging Growth Fund (cont'd.) December 31, 2007

	Market Value
SHORT-TERM INVESTMENT 2.27%
PNC Bank Money Market Account, 3.99%	$	503,396
Total Short-Term Investment (Cost $503,396)		503,396
Total Investments 101.54% (Cost $19,648,286)		22,554,092
Liabilities in Excess of Other Assets (1.54)%		(342,744	)
NET ASSETS 100.00%	$	22,211,348

*  Non-income producing.

ADR  American-Depository Receipt

Van Wagoner Funds Schedule of Investments

See notes to financial statements.

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Van Wagoner Funds Statements of Assets and Liabilities

December 31, 2007

	SMALL-CAP GROWTH FUND			GROWTH OPPORTUNITIES FUND			EMERGING GROWTH FUND
ASSETS:
Investments, at value (cost $6,894,654, $6,159,996 and $19,648,286, respectively)	$	7,885,740		$	6,996,718		$	22,554,092
Cash		1			1			1
Receivable for investments sold		24,678			46,920			104,881
Receivable for fund shares sold		—			200			146
Interest receivable		462			182			1,214
Prepaid expenses and other assets		121,118			77,425			298,672
Total Assets		8,031,999			7,121,446			22,959,006
LIABILITIES:
Payable for investments purchased		185,156			147,171			499,312
Payable for fund shares redeemed		11,391			44,697			93,559
Accrued fund accounting and administration fees		22,501			15,001			22,501
Accrued audit fees		16,500			16,500			18,000
Accrued transfer agent fees		9,984			17,601			30,833
Accrued investment advisory fees		6,775			6,009			19,366
Accrued expenses and other liabilities		21,396			19,742			64,087
Total Liabilities		273,703			266,721			747,658
NET ASSETS	$	7,758,296		$	6,854,725		$	22,211,348
NET ASSETS CONSIST OF:
Capital stock	$	56,432,935		$	6,360,553		$	538,506,040
Accumulated net realized loss on investments		(49,665,726	)		(342,550	)		(519,200,498	)
Net unrealized appreciation on investments		991,087			836,722			2,905,806
Net Assets	$	7,758,296		$	6,854,725		$	22,211,348
CAPITAL STOCK, $0.0001 par value
Authorized		100,000,000			100,000,000			100,000,000
Issued and outstanding		884,254			778,788			5,240,944
NET ASSET VALUE, REDEMPTION PRICEAND OFFERING PRICE PER SHARE (NET ASSETS/SHARES OUTSTANDING)	$	8.77		$	8.80		$	4.24

See notes to financial statements.

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Van Wagoner Funds Statements of Operations

Period Ended December 31, 2007

	SMALL-CAP GROWTH FUND			GROWTH OPPORTUNITIES FUND			EMERGING GROWTH FUND
INVESTMENT INCOME:
Interest	$	3,240		$	3,181		$	10,824
Dividends		1,952			1,832			5,178
Total Investment Income		5,192			5,013			16,002
EXPENSES:
Investment advisory fees		189,723			175,693			524,895
Insurance expense		95,472			79,761			253,782
Transfer agent fees and expenses		76,362			146,449			235,467
Directors' and officer's fees, salary and expenses		61,848			56,371			171,913
Legal fees		58,041			45,235			167,099
Fund accounting and administration fees		90,001			90,001			90,001
Distribution fees		25,290			23,244			70,796
Printing and postage expenses		21,491			20,817			60,083
Audit fees		16,500			16,500			18,000
Custody fees		14,901			13,965			14,552
State registration fees		7,287			6,069			4,991
Miscellaneous expenses		28,921			27,535			53,963
Total expenses		685,837			701,640			1,665,542
Advisory fee waiver		(88,564	)		(82,719	)		(241,713	)
Expenses paid indirectly by brokers		(52,535	)		(14,545	)		(75,944	)
Net Expenses		544,738			604,376			1,347,885
NET INVESTMENT LOSS		(539,546	)		(599,363	)		(1,331,883	)
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments		(51,987	)		7,045			369,992
Change in net unrealized appreciation or depreciation on investments		(156,775	)		(289,279	)		(896,541	)
		(208,762	)		(282,234	)		(526,549	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(748,308	)	$	(881,597	)	$	(1,858,432	)

Van Wagoner Funds Financial Statements

See notes to financial statements.

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Van Wagoner Funds Statements of Changes in Net Assets

	SMALL-CAP GROWTH FUND						GROWTH OPPORTUNITIES FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2007			Year Ended December 31, 2006
OPERATIONS:
Net investment loss	$	(539,546	)	$	(494,832	)	$	(599,363	)	$	(686,695	)
Net realized gain (loss) on investments		(51,987	)		1,078,133			7,045			1,255,699
Change in net unrealized appreciation or depreciation on investments		(156,775	)		120,427			(289,279	)		(99,669	)
Net increase (decrease) in net assets resulting from operations		(748,308	)		703,728			(881,597	)		469,335
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares		190,468			5,183,360			422,381			780,439
Redemption of shares		(3,795,371	)		(9,559,473	)		(3,879,960	)		(5,011,428	)
Net decrease from share transactions		(3,604,903	)		(4,376,113	)		(3,457,579	)		(4,230,989	)
TOTAL DECREASE IN NET ASSETS		(4,353,211	)		(3,672,385	)		(4,339,176	)		(3,761,654	)
NET ASSETS:
Beginning of period		12,111,507			15,783,892			11,193,901			14,955,555
End of period	$	7,758,296		$	12,111,507		$	6,854,725		$	11,193,901
TRANSACTIONS IN SHARES:
Shares sold		19,782			485,264			42,746			76,175
Shares redeemed		(391,278	)		(969,893	)		(391,828	)		(491,967	)
Net decrease		(371,496	)		(484,629	)		(349,082	)		(415,792	)

See notes to financial statements.

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	EMERGING GROWTH FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006
OPERATIONS:
Net investment loss	$	(1,331,883	)	$	(1,396,186	)
Net realized gain (loss) on investments		369,992			3,970,400
Change in net unrealized appreciation or depreciation on investments		(896,541	)		1,206,857
Net increase (decrease) in net assets resulting from operations		(1,858,432	)		3,781,071
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares		1,835,457			8,866,470
Redemption of shares		(13,215,552	)		(17,235,734	)
Net decrease from share transactions		(11,380,095	)		(8,369,264	)
TOTAL DECREASE IN NET ASSETS		(13,238,527	)		(4,588,193	)
NET ASSETS:
Beginning of period		35,449,875			40,038,068
End of period	$	22,211,348		$	35,449,875
TRANSACTIONS IN SHARES:
Shares sold		414,230			1,811,097
Shares redeemed		(2,877,277	)		(3,754,858	)
Net decrease		(2,463,047	)		(1,943,761	)

Van Wagoner Funds Financial Statements

See notes to financial statements.

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Van Wagoner Funds Financial Highlights

For a Fund Share Outstanding Throughout the Period

	SMALL-CAP GROWTH FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2005			Year Ended December 31, 2004			Year Ended December 31, 2003
Net Asset Value, Beginning of Period	$	9.64		$	9.07		$	10.36		$	12.29		$	8.94
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.61	)		(0.39	)		(0.36	)		(0.27	)		(0.23	)
Net realized and unrealized gains (losses) on investments		(0.26	)		0.96			(0.93	)		(1.66	)		3.58
Total from investment operations		(0.87	)		0.57			(1.29	)		(1.93	)		3.35
Net Asset Value, End of Period	$	8.77		$	9.64		$	9.07		$	10.36		$	12.29
Total Return		(9.03	)%		6.29	%		(12.37	)%		(15.79	)%		37.47	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s)	$	7,758		$	12,112		$	15,784		$	28,286		$	42,296
Ratio of expenses to average net assets:
Net of waivers and reimbursements and expenses paid indirectly by brokers(1)(2)		5.38	%		3.81	%		3.32	%		2.16	%		2.03	%
Net of waivers and reimbursements and before fees and expenses paid indirectly by brokers(1)(3)		5.90	%		4.95	%		4.46	%		3.05	%		2.39	%
Before waivers and reimbursements and
expenses paid indirectly by brokers(3)		6.78	%		5.31	%		4.46	%		3.05	%		3.08	%
Ratio of net investment loss to average net assets:
Net of waivers and reimbursements and expenses paid indirectly by brokers(1)		(5.33	)%		(3.30	)%		(3.12	)%		(2.09	)%		(1.96	)%
Before waivers and reimbursements and expenses paid indirectly by brokers		(6.73	)%		(4.81	)%		(4.26	)%		(2.98	)%		(3.01	)%
Portfolio turnover rate		249	%		817	%		440	%		225	%		575	%

⁽¹⁾  For the years ended December 31, 2005 and December 31, 2004, no expenses were waived or reimbursed.

⁽²⁾  Excludes dividends on short sales.

⁽³⁾  Includes dividends on short sales.

See notes to financial statements.

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Van Wagoner Funds Financial Highlights

For a Fund Share Outstanding Throughout the Period

	GROWTH OPPORTUNITIES FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2005			Year Ended December 31, 2004			Period Ended December 31, 2003(1)
Net Asset Value, Beginning of Period	$	9.92		$	9.69		$	11.15		$	13.10		$	10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.77	)		(0.61	)		(0.55	)		(0.35	)		(0.23	)
Net realized and unrealized gains (losses) on investments		(0.35	)		0.84			(0.91	)		(1.43	)		5.55
Total from investment operations		(1.12	)		0.23			(1.46	)		(1.78	)		5.32
DISTRIBUTIONS:
Net realized gains		—			—			—			(0.17	)		(2.22	)
Net Asset Value, End of Period	$	8.80		$	9.92		$	9.69		$	11.15		$	13.10
Total Return		(11.29	)%		2.48	%		(13.11	)%		(13.64	)%		54.01	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s)	$	6,855		$	11,194		$	14,956		$	25,986		$	36,225
Ratio of expenses to average net assets:
Net of waivers and reimbursements and expenses paid indirectly by brokers(2)(3)		6.50	%		5.34	%		5.01	%		2.76	%		2.87	%
Net of waivers and reimbursements and before fees and expenses paid indirectly by brokers(2)(4)		6.66	%		6.03	%		5.32	%		3.44	%		3.85	%
Before waivers and reimbursements and
expenses paid indirectly by brokers(4)		7.55	%		6.44	%		5.32	%		3.44	%		4.01	%
Ratio of net investment loss to average net assets:
Net of waivers and reimbursements and expenses paid indirectly by brokers(2)		(6.45	)%		(5.06	)%		(4.47	)%		(2.63	)%		(2.81	)%
Before waivers and reimbursements and expenses paid indirectly by brokers		(7.49	)%		(6.17	)%		(4.77	)%		(3.32	)%		(3.95	)%
Portfolio turnover rate		245	%		828	%		570	%		324	%		315	%

⁽¹⁾  Commencement of operations was March 1, 2003.

⁽²⁾  For the years ended December 31, 2005 and December 31, 2004, no expenses were waived or reimbursed.

⁽³⁾  Excludes dividends on short sales.

⁽⁴⁾  Includes dividends on short sales.

Van Wagoner Funds Financial Statements

See notes to financial statements.

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Van Wagoner Funds Financial Highlights

For a Fund Share Outstanding Throughout the Period

	EMERGING GROWTH FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2005			Year Ended December 31, 2004			Year Ended December 31, 2003
Net Asset Value, Beginning of Period	$	4.60		$	4.15		$	5.35		$	6.36		$	4.32
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.25	)		(0.18	)		(0.18	)		(0.12	)		(0.12	)
Net realized and unrealized gains (losses) on investments		(0.11	)		0.63			(1.02	)		(0.89	)		2.16
Total from investment operations		(0.36	)		0.45			(1.20	)		(1.01	)		2.04
Net Asset Value, End of Period	$	4.24		$	4.60		$	4.15		$	5.35		$	6.36
Total Return		(7.83	)%		10.84	%		(22.29	)%		(16.04	)%		47.22	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s)	$	22,211		$	35,450		$	40,038		$	85,100		$	124,388
Ratio of expenses to average net assets:
Net of waivers and reimbursements and expenses paid indirectly by brokers(1)(2)		4.76	%		3.70	%		3.53	%		2.06	%		2.04	%
Net of waivers and reimbursements and before fees and expenses paid indirectly by brokers(1)(3)		5.03	%		4.44	%		4.21	%		2.84	%		2.36	%
Before waivers and reimbursements and expenses paid indirectly by brokers(3)		5.88	%		4.81	%		4.21	%		2.84	%		2.77	%
Ratio of net investment loss to average net assets:
Net of waivers and reimbursements and expenses paid indirectly by brokers(1)		(4.70	)%		(3.46	)%		(3.28	)%		(1.96	)%		(2.00	)%
Before waivers and reimbursements and expenses paid indirectly by brokers		(5.82	)%		(4.57	)%		(3.96	)%		(2.74	)%		(2.73	)%
Portfolio turnover rate		245	%		778	%		468	%		223	%		359	%

⁽¹⁾  For the years ended December 31, 2005 and December 31, 2004, no expenses were waived or reimbursed.

⁽²⁾  Excludes dividends on short sales.

⁽³⁾  Includes dividends on short sales.

See notes to financial statements.

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Van Wagoner Funds Notes to Financial Statements

1.  Organization

Van Wagoner Funds, Inc. (the "Company") was organized on October 18, 1995 as a Maryland corporation and is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end management investment company. The Small-Cap Growth Fund, Growth Opportunities Fund, and Emerging Growth Fund (collectively the "Funds") are separate diversified investment portfolios of Van Wagoner Funds, Inc.

The Small-Cap Growth Fund invests primarily (at least 80% of its total assets) in small companies that the Adviser believes have the potential to be the market leaders of the future. A small size company is one that has a market capitalization that ranges from the smallest to the largest companies in the Russell 2000 Growth Index at the time of purchase.

The Growth Opportunities Fund seeks to invest in common stocks of growth companies that are already recognized as leaders in their industry, but are also known as innovators in their field. The Fund looks for companies that are still growing, usually because of a new, improved or upgraded product, service or business operation.

The Emerging Growth Fund invests primarily in common stocks of small-cap and mid-cap growth companies with the potential for above average, long-term growth.

2.  Recent Accounting Pronouncements

In July 2006, the Financial Accounting Standards Board ("FASB") issued Interpretation No.48, "Accounting for Uncertainty in Income Taxes and Interpretation of FASB Statement No. 109" (the "Interpretation"). The Interpretation establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. Management has analyzed the Fund's tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2004 - 2007) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Fund's financial statements.

In addition, in September 2006, the FASB issued Statement on Financial Accounting Standards No. 157 "Fair Value Measurements" ("SFAS 157"). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosure about fair value measurements. SFAS 157 applies to fair value measurements already required or permitted by existing standards. SFAS 157 is effective for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of December 31, 2007, the Funds do not believe the adoption of SFAS 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements reported on the statement of operations for a fiscal period.

Van Wagoner Funds Notes to Financial Statements

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Van Wagoner Funds Notes to Financial Statements

3.  Significant Accounting Policies

The following significant accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP). Such policies are consistently followed by the Funds in preparation of their financial statements. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be material.

(a)  Investment Valuation - Securities held by the Funds are valued based on their current market value. Equity securities (including securities sold short) are valued using the official closing price or the last sale price on the exchange or in the principal over-the-counter market where they are traded. Securities for which there were no transactions are valued at the closing bid prices. Securities sold short for which there were no transactions are valued at the closing ask prices. Options written or purchased by the Funds are valued at the last sales price if such sales price is between the current bid and asked prices. Otherwise, options are valued at the mean between the current bid and asked prices. The Funds value debt securities maturing within 60 days at amortized cost. If market prices are not readily available for particular securities, including private equity securities, the Funds price these securities at their fair value.

The Board of Directors has adopted a fair value pricing policy for procedures to follow if market prices are not readily available for particular securities. For instance, if trading in a security has been halted or suspended or a security has been delisted from a national exchange, a security has not been traded for an extended period of time, or a significant event with respect to a security occurs after the close of the market or exchange on which the security principally trades and before the time the Company calculates net asset value, the Adviser (or independent directors in the case of private equity securities) will determine the security's fair value. Valuing securities at fair value involves greater reliance on judgment than valuation of securities based on readily available market quotations. A fund that uses fair value to price securities may value those securities higher or lower than another fund using market quotations or fair value to price the same securities. There can be no assurance that the fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the fund determines its net asset value.

(b)  Expenses - The Funds are charged for those expenses that are directly attributable to each Fund, such as advisory and custodian fees. Expenses that are not directly attributable to a Fund are typically allocated among the Funds in proportion to their respective average daily net assets.

(c)  Option Contracts - The Funds may purchase put options to hedge portfolio investments. Premiums paid for option contracts purchased are included in the Statements of Assets and Liabilities as an asset. When

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option contracts expire or are closed, realized gains or losses on the options contracts are recognized on the options contracts without regard to any unrealized gains or losses on the underlying securities.

The Funds may also write (sell) covered call options to hedge portfolio investments. When a Fund sells an option, an amount equal to the premium received by the Fund is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing an option, a Fund may become obligated during the term of the option to deliver the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase transaction, the Fund realizes a gain or loss, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When a written call option is exercised, the premium originally received increases the proceeds of the sale of the security, and the Fund realizes a gain or loss from the sale of the underlying security.

(d)  Short Positions - When a Fund sells a security short, an amount equal to the sales proceeds is included in the Statement of Assets and Liabilities as an asset and an equal amount as a liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the security sold short. Subsequent fluctuations in the market prices of securities sold short may cause the liability to differ from that reflected in the Statements of Assets and Liabilities. The Fund is liable for any dividends paid on securities sold short. Dividends on short sales, if any, are included as a component of miscellaneous expense in the Statement of Operations. The Fund maintains assets consisting of cash or liquid securities equal in amount to the liability created by the short sale. These assets are adjusted daily to reflect changes in the value of the securities sold short.

(e)  Distributions to Shareholders - Dividends from net investment income and net realized capital gains, if any, will be declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The Funds may periodically make reclassifications among certain capital accounts as a result of the timing and characterization of certain income and capital gains or losses determined in accordance with federal income tax regulations, which may differ from GAAP.

Accordingly, at December 31, 2007, reclassifications were recorded to decrease capital stock and increase accumulated net investment income by $539,546, $599,363 and $1,331,883 as a result of net investment losses by the Small-Cap Growth, Growth Opportunities and Emerging Growth Funds, respectively.

No distributions were made in the fiscal years ended December 31, 2007 and 2006 for all Funds.

(f)  Brokerage Service and Other Arrangements - Van Wagoner Capital Management, Inc. (the "Adviser") places security trades with

Van Wagoner Funds Notes to Financial Statements

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Van Wagoner Funds Notes to Financial Statements

designated brokers who have agreed to pay certain custody, transfer agency or other operating expenses through the use of Brokerage Service Arrangements on behalf of the Small-Cap Growth, Growth Opportunities and Emerging Growth Funds. The amount of expenses paid through Brokerage Service Arrangements for the year ended December 31, 2007 was $52,535, $14,545 and $75,944 in the Small-Cap Growth, Growth Opportunities and Emerging Growth Funds, respectively.

Amounts in excess of 5% of net expenses for each Fund included in the respective expense category and in expenses paid indirectly by brokers in the Statement of Operations were $30,865 for "transfer agent fees and expenses" for the Small-Cap Growth Fund.

(g)  Other - Investment transactions are accounted for on a trade date basis. Each Fund determines the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sale proceeds. Dividend income and expense is recognized on the ex-dividend date and interest income is recognized on an accrual basis.

4.  Federal Income Taxes

Each Fund intends to comply with the requirements of the Subchapter M of Internal Revenue Code necessary to continue to qualify as a regulated investment company and to make the requisite distributions of income to its shareholders, which will be sufficient to relieve it from all or substantially all federal income taxes.

The Funds intend to retain capital gains that may be offset against available capital loss carryforwards for federal income tax purposes. For federal income tax purposes, the Funds had capital loss carryforwards at December 31, 2007 as follows:

Date of Expiration		Small-Cap Growth		Growth Opportunities		Emerging Growth
	2009	$	—	$	—	$	236,991,733
	2010		24,086,622		—		174,822,268
	2011		19,406,798		—		73,869,977
	2012		5,158,565		20,460		23,566,789
	2013		679,356		—		9,299,078
	2014		—		—		—
	2015		116,182		55,971		—
	Total	$	49,447,523	$	76,431	$	518,549,845

In 2007, the Small-Cap Growth, Growth Opportunities and Emerging Growth Funds utilized capital loss carryforwards of $0, $0 and $152,461, respectively.

The cost of securities on a federal tax basis at December 31, 2007, for the Small-Cap Growth, Growth Opportunities and Emerging Growth Funds was $7,112,857, $6,426,115 and $20,298,939, respectively.

At December 31, 2007, gross unrealized appreciation and depreciation on investments were as follows:

Fund	Unrealized appreciation		Unrealized (depreciation)			Net unrealized appreciation on investments
Small-Cap Growth	$	1,381,167	$	(608,283	)	$	772,884
Growth Opportunities		1,167,764		(597,161	)		570,603
Emerging Growth		3,936,714		(1,681,561	)		2,255,153

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The book basis and tax basis of net unrealized appreciation (depreciation) on investments differs primarily as a result of the tax deferral of losses on wash sales.

At December 31, 2007, the components of accumulated earnings/deficit on a tax basis were as follows:

Fund	Net unrealized appreciation on investments		Accumulated capital and other losses			Total accumulated earnings/deficit
Small-Cap Growth	$	772,884	$	(49,447,523	)	$	(48,674,639	)
Growth Opportunities		570,603		(76,431	)		494,172
Emerging Growth		2,255,153		(518,549,845	)		(516,294,692	)

5.  Investment Advisory Agreement and Related Party Transactions

Each Fund has an agreement with Van Wagoner Capital Management, Inc., the Adviser, to furnish investment advisory services to the Funds. Effective March 1, 2003, the commencement of operations of the Growth Opportunities Fund, and September 1, 2003, for the Small-Cap Growth and Emerging Growth Funds, under the terms of each agreement, the Adviser is compensated at a basic fee of 1.25% of average daily net assets for the performance period for each of the Funds. The basic fee may be adjusted upward or downward (by up to 0.25% of the Fund's average daily net assets for the performance period), depending on whether and to what extent the investment performance of the Fund, for the relevant performance period, exceeds or is exceeded by, the performance of the benchmark over the same period. The benchmark for the Small-Cap Growth Fund and the Emerging Growth Fund is the Lipper Small-Cap Growth Funds Index. The Lipper Small-Cap Growth Funds Index is an equal dollar weighted index consisting of the largest mutual funds within the small-cap growth fund classification, as defined by Lipper, Inc. The benchmark for the Growth Opportunities Fund is the Lipper Mid-Cap Growth Funds Index. The Lipper Mid-Cap Growth Funds Index is an equal dollar weighted index of the largest mutual funds in the mid-cap growth fund classification, as defined by Lipper, Inc. Each 0.10% of difference of each Fund's performance compared to the performance of its benchmark is multiplied by a performance adjustment of 0.025%, up to a maximum adjustment of 0.25% (as an annual rate). The performance period consists of the prior 36 calendar months, and is also referred to as a rolling 36-month period. Until each Fund has operated for 36 months under this agreement, it will make performance adjustments to the basic fee after the Fund has operated for 12 months under this agreement, and will use a rolling 12-month performance period. After the Fund has operated for 24 months under this agreement, it will switch to a rolling 24-month performance period.

Effective July 1, 2006, the Adviser has agreed to voluntarily waive investment advisory fees exceeding 1.00% of current average daily net assets for the Small-Cap Growth, Growth Opportunities and Emerging Growth Funds. The Adviser has agreed to voluntarily waive its fees to 1.00% of current average daily net assets indefinitely.

The Funds do not compensate their officers who are officers of the Adviser. For the year ended December 31, 2007, the Funds made no payments to their directors and officers except for directors'

Van Wagoner Funds Notes to Financial Statements

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Van Wagoner Funds Notes to Financial Statements

fees paid to or accrued for independent directors and the compensation paid to or accrued for the Funds' President, Treasurer, Secretary and Chief Compliance Officer.

PFPC Inc. ("PFPC"), an indirect majority-owned subsidiary of The PNC Financial Services Group, Inc., provides the Funds with administrative services pursuant to an administration agreement. The services include the day-to-day administration of matters related to the corporate existence of the Company, maintenance of its records, preparation of reports, supervision of the Company's arrangements with its custodian and assistance in the preparation of the Company's registration statements under federal and state laws.

6.  Service and Distribution Plan

The Funds have adopted a Service and Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds in connection with the distribution of their shares at an annual rate, as determined from time to time by the Board of Directors, of up to 0.25% of each Fund's average daily net assets.

7.  Investment Transactions

The aggregate purchases and sales of securities, excluding short-term investments, for the Funds for the year ended December 31, 2007, were as follows:

Fund	Purchases		Sales
Small-Cap Growth	$	24,896,531	$	28,896,191
Growth Opportunities		22,623,691		26,474,380
Emerging Growth		68,774,846		80,541,123

8.  Contingencies

(a)  Indemnification Arrangements - In the normal course of business, the Funds enter into contracts that provide for general indemnifications to the counterparties to those contracts. The Company has not made any payments related to such arrangements for the year ended December 31, 2007. The Funds' maximum exposure under these arrangements is dependent upon claims that may be made against the Funds in the future and, therefore, cannot be estimated. The Company believes that the outcome of these arrangements will not have a material adverse effect on the results of operations or net asset values of the Funds.

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Van Wagoner Funds Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
Van Wagoner Funds, Inc.
San Francisco, California

We have audited the accompanying statements of assets and liabilities of the Small-Cap Growth Fund, Growth Opportunities Fund and Emerging Growth Fund, each a series of the Van Wagoner Funds, Inc., including the schedule of investments as of December 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the three years in the period then ended December 31, 2005 have been audited by other auditors, whose report dated February 10, 2006 expressed unqualified opinion on such financial statements and financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian and brokers or by other appropriate procedures where replies from the brokers were not received. 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 and financial highlights referred to above present fairly in all material respects, the financial position of the Small-Cap Growth Fund, Growth Opportunities Fund and Emerging Growth Fund, as of December 31, 2007, the results of their operations for the year then ended, the changes in their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

  TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
February 15, 2008

Van Wagoner Funds Report of Independent Registered Public Accounting Firm

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Van Wagoner Funds Approval of Investment Advisory Agreements

ANNUAL RENEWAL OF INVESTMENT ADVISORY AGREEMENTS

The Investment Company Act of 1940, as amended (the "Act") requires that the investment advisory agreements (the "Agreements") between each of the Van Wagoner Funds, Inc. (the "Funds") and Van Wagoner Capital Management, Inc. (the "Adviser") be approved annually by a vote of a majority of the Board of Directors of the Funds, including a majority of the Directors who are not parties to the Agreements or "interested persons" of the Funds as that term is defined in the Act. At a meeting of the Board of Directors of the Company on December 17, 2007, the Directors, none of whom are "interested persons" considered and approved the renewal of the Funds' Agreements.

The Board's approval was based on its consideration and evaluation of a variety of factors, including: (1) the nature, quality and extent of services provided by the Adviser; (2) the performance of each Fund in comparison to its benchmark index and a peer group of mutual funds; (3) the management fees and total operating expenses of each Fund, including comparative information with respect to a peer group of mutual funds; (4) the extent to which economies of scale may be realized as a Fund grows; and (5) whether fee levels reflect any potential economies of scale for the benefit of shareholders.

In advance of the meetings, the Directors requested and received materials to assist them in considering the renewal of the Agreements. The materials provided contained information with respect to the factors noted below, including detailed comparative information relating to the performance, advisory fees and other expenses of the Funds. The materials also included comparisons of the Funds with other funds of similar size and investment objectives in terms of performance, fees and other expenses, as well as the performance of each Fund versus its benchmark. In addition, the Adviser provided information regarding its expenses, balance sheet and cash flow.

The Directors also reviewed the Adviser's Form ADV, the Adviser's IPO allocation procedures, the Adviser's compliance and litigation history, the Code of Ethics applicable to both the Adviser and the Funds, the Adviser's proxy voting policy, the Funds' brokerage commissions, a summary of the Funds' brokerage credits, detailed materials provided by Lipper, Inc. ("Lipper") through September 30, 2007, regarding the Funds' performance, expenses, portfolio turnover, and brokerage commissions, and a performance and expense comparison provided by the Adviser comparing the Funds to other funds considered by the Adviser to be the Funds' main competitors. The Directors also reviewed a memorandum prepared by counsel to the Directors regarding their fiduciary duties relating to consideration of the Agreements.

In connection with each of its regular quarterly meetings during the year, the Board received information on the performance of each of the Funds, including absolute performance and relative performance rankings of each Fund in comparison to an index of comparable funds. Each Director also receives a weekly update of the Funds' performance as compared to various benchmarks and the level of net assets in each Fund.

Throughout the process, the Directors utilized the services of Fund counsel.

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Van Wagoner Funds Approval of Investment Advisory Agreements

DISCUSSION OF FACTORS CONSIDERED

1.  Nature, Quality, and Extent of Services Provided by the Adviser.

The Directors considered the nature, quality and extent of services provided by the Adviser, including portfolio management, regulatory compliance relating to portfolio management, and assistance with marketing and distribution. At each of the Board's regular quarterly meetings, the Directors reviewed information describing the services furnished to the Funds by the Adviser and reporting on the investment management, portfolio trading, and compliance with applicable investment restrictions and limitations of the Funds. The Board also reviewed information as to the portfolio trading costs of the Funds, the Adviser's use of "soft dollars" as permitted by Section 28(e) of the Securities Exchange Act of 1934, and the brokerage credits utilized by the Funds. The Directors concluded that the Adviser provided services comparable to those provided by investment advisers generally; that the nature and extent of the services provided by the Adviser were appropriate for the investment objectives and programs of each of the Funds; that the quality of the services was not unacceptable; that the Adviser had the ability to assist the Funds in implementing a repositioning plan pursuant to which each of the Funds would have its portfolio managed by a sub-adviser overseen by the Adviser; and that since the Adviser had managed the Funds since inception that it had sufficient knowledge and experience to continue managing the Funds.

2.  Investment Performance of the Funds.

The Board received reports at each of its quarterly meetings from the Adviser's President regarding portfolio strategy and performance. The Board noted that the Adviser had a long association with each of the Funds, in each case since inception, and that shareholders had invested in the Funds knowing that the Adviser was managing the assets. In connection with the annual contract renewal process, the Directors reviewed extensive performance information for each of the Funds in relationship to fund comparison groups provided by Lipper. The Directors also reviewed a comparison of each Fund's performance compared to funds that the Adviser considered to be the Funds' main competitors.

The Directors noted that the Funds had underperformed against their peer groups as contained in the Lipper report for most periods, and versus the benchmarks identified in the Funds' prospectus. The directors also noted that there were periods of time in which the Funds had significantly outperformed most mutual funds and the benchmarks. The directors discussed with the Adviser the reasons for the underperformance and the Adviser reported that its investment style had fallen out of favor. In light of that report the Directors determined that it would be in the best interests of the shareholders to change investment styles by utilizing sub-advisers as contemplated by the repositioning plan, but that pending shareholder approval of the sub-advisers, the Adviser should continue to manage the Funds utilizing the investment style expected by the shareholders of the Funds.

While not directly under consideration in connection with renewing the Adviser's agreement, one matter of particular concern for the Board was the relatively high expense ratio of the Funds that has reduced investment performance in recent years. In addition to advisory fees, the Board considered all aspects of Fund expenses. The Funds' expense ratios have increased in general due to a decline of assets in recent years, as well as legal fees, insurance costs, and transfer agent fees attributable to a large number of small shareholder accounts. The Board is exploring with the Adviser alternatives to reduce overall expenses, which may include, among others, new vendor agreements, revised expense targets, and for some Funds, the implementation of minimum account fees.

Van Wagoner Funds Approval of Investment Advisory Agreements

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Van Wagoner Funds Approval of Investment Advisory Agreements

3.  Costs of Services and Profits Realized by the Adviser.

The Directors considered each Fund's management fee and total expense ratio relative to industry averages for each Fund's benchmark category. The Directors noted that with respect to each Fund, the Adviser is contractually owed a base management fee of 1.25% of each Fund's respective average daily net assets for the performance period. Under the terms of the Agreements, the basic fee rate may be adjusted upward or downward (by up to 0.25% of each Fund's average daily net assets), depending on whether and to what extent the investment performance of each Fund for the relevant performance period, exceeds or is exceeded by, the performance of the Fund's benchmark over the same period. Based on the information provided by Lipper, each Fund had the highest contractual management fees and total expenses of the funds in the respective Peer Groups for the period ended September 30, 2007.

However, the Directors noted that effective July 1, 2006, the Adviser had begun to voluntarily waive its management fee such that the amount received by the Adviser would not exceed 1.00% of a Fund's current average daily net assets. The Directors concluded that it was reasonable to continue the Agreements with the continuation of the voluntary fee waiver.

The Directors considered the Adviser's voluntary fee waiver and concluded that the Adviser's profitability was not excessive, particularly given the continuation of the fee waiver.

4.  Economies of Scale.

The Directors considered whether there have been economies of scale with respect to the management of each Fund and whether such Fund has appropriately benefited from any economies of scale. The Board also considered that the Funds continued to experience net redemptions in 2007. The Directors noted that if asset levels grow, certain service provider fees are reduced. The Directors further noted that the structure of the contractual advisory fee provides that if a Fund's assets were to grow dramatically the Adviser would not immediately benefit from that increase in assets due to the rolling time period upon which the asset calculation is made. Rather the Funds would benefit from such a situation.

Other than requesting that the Adviser continue the voluntary fee reduction, the Directors did not specifically discuss breakpoints in the fee schedules given the contractual fulcrum fee.

5.  Other Relevant Considerations.

The Directors considered the character and amount of other incidental benefits received by the Adviser from its association with the Funds. In particular, the Directors reviewed the Adviser's use of soft dollars and the practice of using brokerage credits to pay certain of the Funds' expenses and concluded that each practice benefited the Funds.

CONCLUSIONS

In considering the Agreements, the Directors did not identify any one factor as all-important, but rather considered these factors collectively in light of each Fund's surrounding circumstances. The Directors concluded that re-approval of the Agreements was in the best interests of each Fund and its shareholders.

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Van Wagoner Funds Directors and Officers

The individuals listed below serve as directors and officers of the Funds. Each director serves until his successor is duly elected or until he resigns. Each of the directors oversees 6 funds. The mailing address of the directors and officers is 3 Embarcadero Center, Suite 1120, San Francisco, CA 94111.

Additional information about the Funds' directors is available in the Statement of Additional Information and is available, without charge, upon request, by calling 1-800-228-2121.

Independent Directors	Principal Occupation(s) During Past Five Years
Greg Linn Director since January 2007 Age: 52	Proprietor of Ambullneo Vineyards, a producer of fine wines, since 2001.
Edward C. Peterson Director since January 2007 Age: 54	Vice President of Peterson and Collins, Inc. a commercial, industrial and single-family housing construction company since 1977.
Edward L. Pittman Director since January 2007 Age: 51	Attorney with Thelen Reid Brown Raysman & Steiner LLP since 1999.
Andrew H. Roediger Director since January 2007 Age: 43	President of Marion Advisory Partners, LLC, a real estate development firm, since April 2004 and an Arizona registered investment adviser from May 1997 to April 2004.
Jay Jacobs Director since January 2008 Age: 49	Founder and Former Portfolio Manager, Crossover Venture Partners (long/short equity fund); Founding Partner, Thomas Weisel Partners.
Officers	Principal Occupation(s) During Past Five Years
Susan Freund Chief Compliance Officer since April 2007 President, Treasurer and Secretary since May 2007 Age: 53	Chief Compliance Officer of the Funds since April 2007; President, Treasurer and Secretary of the Funds since May 2007; Senior Counsel with Bank of the West (2001-2007)

Van Wagoner Funds Directors and Officers

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Van Wagoner Funds Additional Information for Shareholders

Proxy Voting Policy and Voting Record

Van Wagoner Capital Management, Inc., the Funds' Adviser, is responsible for exercising the voting rights associated with the securities held by the Funds. A description of the policies and procedures used by the Adviser in fulfilling this responsibility is available without charge, upon request, by calling 1-800-228-2121. It is also available on the SEC's website at www.sec.gov.

In addition, each Fund's complete proxy voting record for the 12 months ended December 31, 2007 is available without charge, upon request, by calling toll free 1-800-228-2121. It is also available on the SEC's website at www.sec.gov.

Quarterly Portfolio Disclosure

The Funds file their complete Schedule of Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of the fiscal quarter. The Funds' Form N-Q is available on the SEC's website at www.sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the Public Reference Room may be obtained by calling 1-800-SEC-0330. In addition, the Funds' Form N-Q is available, without charge, upon request, by calling toll free 1-800-228-2121.

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Please mail correspondence to:

Van Wagoner Funds
P.O. Box 9682
Providence, RI 02940-9682

Express mail or overnight deliveries
should be sent to:

Van Wagoner Funds
101 Sabin Street
Pawtucket, RI 02860

1-800-228-2121

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VW408O  0208

Annual Report

December 31, 2007

Post-Venture Fund*

Mid-Cap Growth Fund*

Technology Fund*

(*In Liquidation)

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Van Wagoner Funds Annual Report (In Liquidation)

Dear Shareholder:  

An Important Reminder...

The Van Wagoner Post-Venture, Mid-Cap Growth and Technology Funds (the "Funds") are not currently accepting new investments.

However, there have been important new developments impacting the Funds. First, the Board of Directors has approved a plan to re-open the Funds to new investors. Changes to the Funds' registration statement are currently pending with the SEC and we anticipate reopening the Funds in mid-April.

Second, the Board has approved new advisory agreements with Van Wagoner Capital Management, Inc. ("VWCM" or the "Adviser") and new subadvisory agreements with Husic Capital Management ("Husic") (for the Post-Venture Fund) and Insight Capital Research & Management, Inc. ("Insight") (for the Technology Fund). These agreements, however, will not take effect unless they are also approved by Fund shareholders at meetings to be held in 2008. The Board has not yet determined record or meeting dates for these meetings.

If approved by shareholders, each of the Funds would have new investment advisory arrangements. Until the Adviser is approved by shareholders, the Fund will continue to invest primarily in high quality short-term money market funds or instruments and will not be able to achieve its investment objective during this time. During this time, the interest earned by these Funds on their investments may be less than the Funds' expenses (which are subject to a conditional expense cap of 3.99% of these Funds' average daily net assets). If shareholders do not approve new advisory arrangements for these Funds, the Board will consider available options, which may include liquidating these Funds.

If new advisory agreements are approved by shareholders, it is expected that the Funds' names and investment programs would change. At this time, but not before, it is expected that the Funds would then be able to seek their investment objectives of capital appreciation.

More information about the proposed advisory agreements, VWCM, Husic and Insight will be available in proxy materials circulated in connection with the shareholder meetings.

As a current shareholder in these Funds, in order to participate in the stock market, you have two options available to you:

1) Transfer your existing investment into one of the open Van Wagoner Funds—Emerging Growth, Small-Cap Growth or Growth Opportunities.

2) Redeem your account.

We appreciate your patronage.

Sincerely,

Susan Freund
President
Van Wagoner Funds, Inc.

Van Wagoner Funds Annual Report

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Van Wagoner Funds Performance

Post-Venture Fund (In Liquidation) — Inception Date 12/31/1996

Total Return for the periods ended 12/31/07

One Year			Five Years			Ten Years
	2.21	%		(3.25	)%		(10.25	)%

The performance figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns reflect fee waivers in effect. In the absence of fee waivers, total return would have been reduced. As of January 1, 2004, fee waivers were eliminated. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please call us at 1-800-228-2121.

This chart assumes an initial hypothetical investment of $10,000 made after the close of business on 12/31/97. Returns shown here and in the table are based on the net change in NAV assuming reinvestment of distributions, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Performance figures reflect fee waivers in effect and represent past performance, which is no guarantee of future results. In the absence of fee waivers, total return would be reduced. The investment return and principal value of an investment in Van Wagoner Funds will fluctuate so that an investor's shares in the Funds, when redeemed, may be worth more or less than their original cost.

The Nasdaq Composite Index is a broad based capitalization weighted index of all Nasdaq-listed companies. Indexes are unmanaged and investors cannot invest in them.

Growth of a Hypothetical $10,000 Investment

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Mid-Cap Growth Fund (In Liquidation) — Inception Date 12/31/1995

Total Return for the periods ended 12/31/07

One Year			Five Years			Ten Years
	(9.43	)%		(4.69	)%		(12.31	)%

The performance figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns reflect fee waivers in effect. In the absence of fee waivers, total return would have been reduced. As of January 1, 2004, fee waivers were eliminated. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please call us at 1-800-228-2121.

This chart assumes an initial hypothetical investment of $10,000 made on 12/31/97. Returns shown here and in the table are based on the net change in NAV assuming reinvestment of distributions, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Performance figures reflect fee waivers in effect and represent past performance, which is no guarantee of future results. In the absence of fee waivers, total return would be reduced. The investment return and principal value of an investment in Van Wagoner Funds will fluctuate so that an investor's shares in the Funds, when redeemed, may be worth more or less than their original cost.

The S&P MidCap 400 Index is an index of mid-capitalization U.S. stocks that measures the performance of the mid-size company segment of the U.S. market. Indexes are unmanaged and investors cannot invest in them.

Growth of a Hypothetical $10,000 Investment

Van Wagoner Funds Performance

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Van Wagoner Funds Performance

Technology Fund (In Liquidation) — Inception Date 12/31/1997

Total Return for the periods ended 12/31/07

One Year			Five Years			Since Inception
	(3.88	)%		(3.93	)%		(7.50	)%

The performance figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns reflect fee waivers in effect. In the absence of fee waivers, total return would have been reduced. As of January 1, 2004, fee waivers were eliminated. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please call us at 1-800-228-2121.

This chart assumes an initial hypothetical investment of $10,000 made after the close of business on 12/31/97 (inception date). Returns shown here and in the table are based on the net change in NAV assuming reinvestment of distributions, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of shares. Performance figures reflect fee waivers in effect and represent past performance, which is no guarantee of future results. In the absence of fee waivers, total return would be reduced. The investment return and principal value of an investment in Van Wagoner Funds will fluctuate so that an investor's shares in the Funds, when redeemed, may be worth more or less than their original cost.

The Morgan Stanley High-Technology 35 Index is an equal dollar-weighted index of 35 stocks from 9 technology subsectors: computer services, design software, server software, PC software and new media, networking and telecommunications equipment, server hardware, PC hardware and peripherals, specialized systems and semiconductors.

The S&P 500 Composite Stock Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is heavily weighted toward stocks with large market capitalization and represents approximately 75% of the U.S. equities market. Indexes are unmanaged and investors cannot invest in them.

Growth of a Hypothetical $10,000 Investment

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Van Wagoner Funds Portfolio Holdings Summary

Sector Weightings (Unaudited)

As of December 31, 2007, the Van Wagoner Funds' portfolios were invested in the following sectors:

Post-Venture Fund

Short-Term Instruments	100.00	%
Total	100.00	%

Technology Fund

Short-Term Instruments	100.00	%
Total	100.00	%

Mid-Cap Growth Fund

Short-Term Instruments	100.00	%
Total	100.00	%

As a percentage of total investments as of December 31, 2007. Holdings are subject to change.

Van Wagoner Funds Portfolio Holdings Summary

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Van Wagoner Funds Expense Example (Unaudited)

We believe it is important for shareholders to have a clear understanding of Fund expenses and the impact they can have on investment return. The following example is presented to illustrate a shareholder's cost of owning the Van Wagoner Funds.

Example

As a shareholder of the Van Wagoner Funds, you incur ongoing costs, including distribution and service (12b-1) fees and other fund expenses. The Funds currently do not charge any transaction costs, such as sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; or exchange fees. This example is intended to help you understand your ongoing costs (in dollars) of investing in each of the Funds and to compare these costs with the ongoing cost of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from July 1, 2007 to December 31, 2007.

Actual Expenses

The first line of the table below for each Fund provides information about actual account values and actual expenses. You may use the information in each of these lines, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period in each Fund.

Hypothetical Example For Comparison Purposes

The second line of the table below for each Fund provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in each of the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only in each of the Funds. Therefore, the second line of the table for each Fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

  For the Period July 1, 2007 to December 31, 2007

Post-Venture Fund	Beginning Account Value 07/01/2007		Ending Account Value 12/31/2007		Annualized Expense Ratio			Expenses Paid During Period*
Actual Fund Return	$	1,000.00	$	1,049.10		12.31	%	$	63.23
Hypothetical 5% Return	$	1,000.00	$	963.35		12.31	%	$	60.59
Mid-Cap Growth Fund
Actual Fund Return	$	1,000.00	$	953.90		16.49	%	$	80.79
Hypothetical 5% Return	$	1,000.00	$	942.38		16.49	%	$	80.31
Technology Fund
Actual Fund Return	$	1,000.00	$	993.30		13.26	%	$	66.25
Hypothetical 5% Return	$	1,000.00	$	958.60		13.26	%	$	65.09

* Expenses are equal to the Fund's annualized expense ratio as indicated above, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

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Van Wagoner Funds Schedule of Investments (In Liquidation)

December 31, 2007

Van Wagoner Post-Venture Fund
	Market Value
SHORT-TERM INVESTMENT 100.96%
PNC Bank Money Market Account, 3.99%	$	1,703,050
Total Short-Term Investment (Cost $1,703,050)		1,703,050
Total Investments 100.96%
(Cost $1,703,050)		1,703,050
Liabilities in Excess of Other Assets (0.96)%		(16,232	)
NET ASSETS 100.00%	$	1,686,818
Van Wagoner Mid-Cap Growth Fund
	Market Value
SHORT-TERM INVESTMENT 101.47%
PNC Bank Money Market Account, 3.99%	$	813,336
Total Short-Term Investment (Cost $813,336)		813,336
Total Investments 101.47%
(Cost $813,336)		813,336
Liabilities in Excess of Other Assets (1.47)%		(11,780	)
NET ASSETS 100.00%	$	801,556

Van Wagoner Technology Fund
	Market Value
SHORT-TERM INVESTMENT 101.03%
PNC Bank Money Market Account, 3.99%	$	1,513,001
Total Short-Term Investment (Cost $1,513,001)		1,513,001
Total Investments 101.03%
(Cost $1,513,001)		1,513,001
Liabilities in Excess of Other Assets (1.03)%		(15,457	)
NET ASSETS 100.00%	$	1,497,544

Van Wagoner Funds Schedule of Investments

See notes to financial statements.

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Van Wagoner Funds Statements of Assets and Liabilities (In Liquidation)

December 31, 2007

	POST- VENTURE FUND			MID-CAP GROWTH FUND			TECHNOLOGY FUND
ASSETS:
Investments, at value (cost $1,703,050, $813,336 and $1,513,001)	$	1,703,050		$	813,336		$	1,513,001
Cash		1			—			1
Interest receivable		5,015			2,707			4,631
Prepaid expenses and other assets		15,742			9,523			14,712
Total Assets		1,723,808			825,566			1,532,345
LIABILITIES:
Payable for fund shares redeemed		7,709			904			3,976
Accrued audit fees		7,500			7,500			7,500
Accrued printing fees		5,719			3,204			5,474
Accrued transfer agent fees and expenses		4,786			2,378			5,005
Accrued fund accounting and administration fees		3,750			3,750			3,750
Accrued legal fees		2,611			1,390			2,565
Accrued custodian fees		1,800			1,773			1,800
Accrued distribution fees		1,474			1,482			1,571
Accrued expenses and other liabilities		1,641			1,629			3,160
Total Liabilities		36,990			24,010			34,801
NET ASSETS	$	1,686,818		$	801,556		$	1,497,544
NET ASSETS CONSIST OF:
Capital stock	$	543,565,075		$	214,760,340		$	418,913,223
Accumulated net realized loss on investments		(541,878,257	)		(213,958,784	)		(417,415,679	)
Net Assets	$	1,686,818		$	801,556		$	1,497,544
CAPITAL STOCK, $0.0001 par value
Authorized		100,000,000			100,000,000			100,000,000
Issued and outstanding		607,729			297,789			335,894
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE (NET ASSETS/SHARES OUTSTANDING)	$	2.78		$	2.69		$	4.46

See notes to financial statements.

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Van Wagoner Funds Statements of Operations (In Liquidation)

Period Ended December 31, 2007

	POST- VENTURE FUND			MID-CAP GROWTH FUND			TECHNOLOGY FUND
INVESTMENT INCOME:
Interest	$	80,420		$	42,006		$	74,243
Total Investment Income		80,420			42,006			74,243
EXPENSES:
Fund accounting and administration fees		78,750			78,750			78,750
Transfer agent fees and expenses		72,568			34,261			72,473
Printing and postage expenses		20,055			8,795			17,371
Legal fees		11,214			5,637			10,512
Insurance		11,790			6,690			10,827
Directors' and officer's fees, salary and expenses		10,874			6,228			11,543
Audit fees		7,500			7,500			7,500
Custody fees		6,080			6,054			6,130
Distribution fees		2,751			1,422			2,538
Miscellaneous expenses		7,161			6,006			7,024
Total Expenses		228,743			161,343			224,668
NET INVESTMENT LOSS		(148,323	)		(119,337	)		(150,425	)
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments		166,530			25,559			77,826
Change in net unrealized appreciation on investments		—			—			—
		166,530			25,559			77,826
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	18,207		$	(93,778	)	$	(72,599	)

Van Wagoner Funds Financial Statements

See notes to financial statements.

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Van Wagoner Funds Statements of Changes in Net Assets (In Liquidation)

	POST-VENTURE FUND						MID-CAP GROWTH FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006			Year Ended December 31, 2007			Year Ended December 31, 2006
OPERATIONS:
Net investment loss	$	(148,323	)	$	(140,549	)	$	(119,337	)	$	(115,742	)
Net realized gain on investments		166,530			279,713			25,559			130,419
Change in net unrealized appreciation on investments		—			—			—			—
Net increase (decrease) in net assets resulting from operations		18,207			139,164			(93,778	)		14,677
CAPITAL SHARE TRANSACTIONS:
Redemption of shares		(461,984	)		(765,912	)		(229,918	)		(727,289	)
Net decrease from share transactions		(461,984	)		(765,912	)		(229,918	)		(727,289	)
TOTAL DECREASE IN NET ASSETS		(443,777	)		(626,748	)		(323,696	)		(712,612	)
NET ASSETS:
Beginning of period		2,130,595			2,757,343			1,125,252			1,837,864
End of period	$	1,686,818		$	2,130,595		$	801,556		$	1,125,252
TRANSACTIONS IN SHARES:
Shares redeemed		(174,298	)		(302,333	)		(81,663	)		(258,462	)
Net decrease		(174,298	)		(302,333	)		(81,663	)		(258,462	)

See notes to financial statements.

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Van Wagoner Funds Financial Statements

	TECHNOLOGY FUND
	Year Ended December 31, 2007			Year Ended December 31, 2006
OPERATIONS:
Net investment loss	$	(150,425	)	$	(142,267	)
Net realized gain on investments		77,826			214,340
Change in net unrealized appreciation on investments		—			—
Net increase (decrease) in net assets resulting from operations		(72,599	)		72,073
CAPITAL SHARE TRANSACTIONS:
Redemption of shares		(388,602	)		(698,231	)
Net decrease from share transactions		(388,602	)		(698,231	)
TOTAL DECREASE IN NET ASSETS		(461,201	)		(626,158	)
NET ASSETS:
Beginning of period		1,958,745			2,584,903
End of period	$	1,497,544		$	1,958,745
TRANSACTIONS IN SHARES:
Shares redeemed		(86,242	)		(158,642	)
Net decrease		(86,242	)		(158,642	)

See notes to financial statements.

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Van Wagoner Funds Financial Highlights

For a Fund Share Outstanding Throughout the Period

	POST-VENTURE FUND
	Year Ended Dec. 31, 2007			Year Ended Dec. 31, 2006			Year Ended Dec. 31, 2005			Year Ended Dec. 31, 2004			Year Ended Dec. 31, 2003
Net Asset Value, Beginning of Period	$	2.72		$	2.54		$	2.89		$	2.96		$	3.28
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.24	)		(0.18	)		(0.20	)		(0.19	)		(0.22	)
Net realized and unrealized gains (losses) on investments		0.30			0.36			(0.15	)		0.12			(0.10	)
Total from investment operations		0.06			0.18			(0.35	)		(0.07	)		(0.32	)
Net Asset Value, End of Period	$	2.78		$	2.72		$	2.54		$	2.89		$	2.96
Total Return		2.21	%		7.09	%		(12.11	)%		(2.37	)%		(9.76	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s)	$	1,687		$	2,131		$	2,757		$	4,517		$	8,010
Ratio of expenses to average net assets:
Net of waivers and reimbursements(1)		12.47	%		10.44	%		8.70	%		5.65	%		3.37	%
Before waivers and reimbursements		12.47	%		10.44	%		8.70	%		5.65	%		4.49	%
Ratio of net investment loss to average net assets:
Net of waivers and reimbursements(1)		(8.09	)%		(6.12	)%		(6.33	)%		(5.06	)%		(3.16	)%
Before waivers and reimbursements		(8.09	)%		(6.12	)%		(6.33	)%		(5.06	)%		(4.28	)%
Portfolio turnover rate		0	%		0	%		0	%		0	%		167	%

⁽¹⁾  For the years ended December 31, 2007, 2006, 2005 and 2004, no expenses were waived or reimbursed.

See notes to financial statements.

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Van Wagoner Funds Financial Highlights

For a Fund Share Outstanding Throughout the Period

	MID-CAP GROWTH FUND
	Year Ended Dec. 31, 2007			Year Ended Dec. 31, 2006			Year Ended Dec. 31, 2005			Year Ended Dec. 31, 2004			Year Ended Dec. 31, 2003
Net Asset Value, Beginning of Period	$	2.97		$	2.88		$	3.19		$	3.26		$	3.42
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.40	)		(0.31	)		(0.23	)		(0.20	)		(0.23	)
Net realized and unrealized gains (losses) on investments		0.12			0.40			(0.08	)		0.13			0.07
Total from investment operations		(0.28	)		0.09			(0.31	)		(0.07	)		(0.16	)
Net Asset Value, End of Period	$	2.69		$	2.97		$	2.88		$	3.19		$	3.26
Total Return		(9.43	)%		3.13	%		(9.43	)%		(2.45	)%		(4.68	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s)	$	802		$	1,125		$	1,838		$	2,973		$	4,685
Ratio of expenses to average net assets:
Net of waivers and reimbursements(1)		17.02	%		12.41	%		8.76	%		5.76	%		3.44	%
Before waivers and reimbursements		17.02	%		12.41	%		8.76	%		5.76	%		4.34	%
Ratio of net investment loss to average net assets:
Net of waivers and reimbursements(1)		(12.59	)%		(8.11	)%		(6.34	)%		(5.13	)%		(3.19	)%
Before waivers and reimbursements		(12.59	)%		(8.11	)%		(6.34	)%		(5.13	)%		(4.09	)%
Portfolio turnover rate		0	%		0	%		0	%		0	%		253	%

⁽¹⁾  For the years ended December 31, 2007, 2006, 2005 and 2004, no expenses were waived or reimbursed.

Van Wagoner Funds Financial Statements

See notes to financial statements.

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Van Wagoner Funds Financial Highlights

For a Fund Share Outstanding Throughout the Period

	TECHNOLOGY FUND
	Year Ended Dec. 31, 2007			Year Ended Dec. 31, 2006			Year Ended Dec. 31, 2005			Year Ended Dec. 31, 2004			Year Ended Dec. 31, 2003
Net Asset Value, Beginning of Period	$	4.64		$	4.45		$	4.93		$	5.07		$	5.45
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.45	)		(0.34	)		(0.36	)		(0.35	)		(0.40	)
Net realized and unrealized gains (losses) on investments		0.27			0.53			(0.12	)		0.21			0.02
Total from investment operations		(0.18	)		0.19			(0.48	)		(0.14	)		(0.38	)
Net Asset Value, End of Period	$	4.46		$	4.64		$	4.45		$	4.93		$	5.07
Total Return		(3.88	)%		4.27	%		(9.74	)%		(2.76	)%		(6.97	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s)	$	1,498		$	1,959		$	2,585		$	4,099		$	7,670
Ratio of expenses to average net assets:
Net of waivers and reimbursements(1)		13.28	%		10.86	%		9.03	%		5.93	%		3.42	%
Before waivers and reimbursements		13.28	%		10.86	%		9.03	%		5.93	%		4.35	%
Ratio of net investment loss to average net assets:
Net of waivers and reimbursements(1)		(8.89	)%		(6.54	)%		(6.64	)%		(5.34	)%		(3.19	)%
Before waivers and reimbursements		(8.89	)%		(6.54	)%		(6.64	)%		(5.34	)%		(4.12	)%
Portfolio turnover rate		0	%		0	%		0	%		0	%		147	%

⁽¹⁾  For the years ended December 31, 2007, 2006, 2005 and 2004, no expenses were waived or reimbursed.

See notes to financial statements.

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Van Wagoner Funds Notes to Financial Statements (In Liquidation)

1.  Organization

Van Wagoner Funds, Inc. (the "Company") was organized on October 18, 1995 as a Maryland corporation and is registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end management investment company. The Post-Venture Fund, Mid-Cap Growth Fund and Technology Fund (collectively the "Funds" or the "Liquidating Funds") are separate diversified investment portfolios of Van Wagoner Funds, Inc.

The Board of Directors of Van Wagoner Funds, Inc. approved a plan to liquidate each of the Funds effective March 1, 2003. Accordingly, each of the Funds has liquidated its investments in an orderly fashion and invested the proceeds in high quality short-term money market instruments. The Funds will not be able to achieve their investment objective of capital appreciation to the extent they invest in money market instruments since these securities earn interest but do not appreciate in value. More recently, the Board of Directors approved a plan to re-open the Funds to new investors (currently anticipated for mid-April). The Board has also approved new advisory arrangements for the Funds which, if approved by shareholders later in 2008, would impact the Funds' investment programs. Until the new advisory arrangements are approved, however, the Funds will continue to invest primarily in high-quality short-term money market instruments.

2.  Recent Accounting Pronouncements

In July 2006, the Financial Accounting Standards Board ("FASB") issued Interpretation No.48, "Accounting for Uncertainty in Income Taxes and Interpretation of FASB Statement No. 109" (the "Interpretation"). The Interpretation establishes for all entities, including pass-through entities such as the Funds, a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction), and requires certain expanded tax disclosures. Management has analyzed the Fund's tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2004 - 2007) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Fund's financial statements.

In addition, in September 2006, the FASB issued Statement on Financial Accounting Standards No. 157 "Fair Value Measurements" ("SFAS 157"). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosure about fair value measurements. SFAS 157 applies to fair value measurements already required or permitted by existing standards. SFAS 157 is effective for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current accounting principles generally accepted in the United States of America from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of December 31, 2007, the Funds do not believe the adoption of SFAS 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements reported on the statement of operations for a fiscal period.

3.  Significant Accounting Policies

The following significant accounting policies are in conformity with accounting principles

Van Wagoner Funds Notes to Financial Statements

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Van Wagoner Funds Notes to Financial Statements (In Liquidation)

generally accepted in the United States of America (GAAP). Such policies are consistently followed by the Funds in preparation of their financial statements. The Funds changed their basis of accounting under accounting principles generally accepted in the United States of America from a going concern basis to a liquidation basis as of March 1, 2003. The effect of liquidation accounting had no material affect on the financial statements of the Funds as assets and liabilities were already stated at fair value. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be material.

(a)  Investment Valuation - Securities held by the Funds are valued based on their current market value. Debt instruments maturing within 60 days are value by the amortized cost method. Any securities for which market quotations are not readily available are valued at their fair value. Fair values so determined may not reflect the prices at which those securities could have been sold. The Board of Directors has adopted a fair value pricing policy for procedures to follow if market prices are not readily available for particular securities. Valuing securities at fair value involves greater reliance on judgment than valuation of securities based on readily available market quotations. A fund that uses fair value to price securities may value those securities higher or lower than another fund using market quotations or fair value to price the same securities. There can be no assurance that the fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the fund determines its net asset value.

(b)  Expenses - The Funds are charged for those expenses that are directly attributable to each Fund, such as custodian fees. Expenses that are not directly attributable to a Fund are typically allocated among the Funds in proportion to their respective average daily net assets.

(c)  Distributions to Shareholders - Dividends from net investment income and net realized capital gains, if any, will be declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The Funds may periodically make reclassifications among certain capital accounts as a result of the timing and characterization of certain income and capital gains or losses determined in accordance with federal income tax regulations, which may differ from GAAP.

  Accordingly, at December 31, 2007, reclassifications were recorded to decrease capital stock and increase accumulated net investment income by $148,323, $119,337 and $150,425 as a result of net investment losses by the Post-Venture, Mid-Cap Growth and Technology Funds, respectively.

(d)  Other - Investment transactions are accounted for on a trade date basis. Each Fund determines the gain or loss realized

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from the investment transactions by comparing the original cost of the security lot sold with the net sale proceeds. Dividend income and expense is recognized on the ex-dividend date and interest income is recognized on an accrual basis.

4.  Federal Income Taxes

Each Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to continue to qualify as a regulated investment company and to make the requisite distributions of income to its shareholders, which will be sufficient to relieve it from all or substantially all federal income taxes.

For Federal income tax purposes, the Funds had capital loss carryforwards at December 31, 2007, as shown below. During the year ended December 31, 2007 the Post-Venture, Mid-Cap Growth and Technology Funds utilized capital loss carryforwards of $166,530, $25,559, and $77,826, respectively. The Funds may not realize the benefits of these capital loss carryforwards before they expire. Fund liquidation will result in a loss of this benefit.

Date of Expiration	Post-Venture		Mid-Cap Growth		Technology
2008	$	102,510,725	$	24,315,595	$	47,754,866
2009		208,568,549		119,593,823		188,389,347
2010		167,738,630		56,452,576		132,184,745
2011		49,142,144		7,417,678		37,716,740
2012		9,057,950		3,856,091		7,074,062
2013		4,860,259		2,323,021		4,295,919
	$	541,878,257	$	213,958,784	$	417,415,679

The cost of securities on a Federal tax basis at December 31, 2007, for the Post-Venture, Mid-Cap Growth and Technology Funds was the same as the book basis.

As of December 31, 2007, the components of accumulated deficit on a tax basis were as follows:

Fund	Accumulated capital and other losses			Total accumulated deficit
Post-Venture	$	(541,878,257	)	$	(541,878,257	)
Mid-Cap Growth		(213,958,784	)		(213,958,784	)
Technology		(417,415,679	)		(417,415,679	)

5.  Investment Advisory Agreement and Related Party Transactions

Effective April 30, 2003, Van Wagoner Capital Management, Inc. (the "Adviser") terminated its investment advisory agreements with the Liquidating Funds. The Adviser also terminated the agreement to limit the total expenses (excluding interest, dividends on short sales, taxes, brokerage and extraordinary expenses) to the annual rate of 2.00% of each Liquidating Fund's average net assets. Since that date, the officers and Board of Directors of Van Wagoner Funds, Inc. have overseen the continued orderly liquidation of the Funds.

The Funds do not compensate their officers who are officers of the Adviser. For the year ended December 31, 2007, the Funds made no payments to their directors and officers except for directors' fees paid to or accrued for independent directors and the compensation paid to or accrued for the Funds' President, Treasurer, Secretary and Chief Compliance Officer.

Van Wagoner Funds Notes to Financial Statements

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Van Wagoner Funds Notes to Financial Statements (In Liquidation)

PFPC Inc. ("PFPC"), an indirect majority-owned subsidiary of The PNC Financial Services Group, Inc., provides the Funds with administrative services pursuant to an administration agreement. The services include the day-to-day administration of matters related to the corporate existence of the Company, maintenance of its records, preparation of reports, supervision of the Company's arrangements with its custodian and assistance in the preparation of the Company's registration statements under federal and state laws.

6.  Service and Distribution Plan

The Funds have adopted a Service and Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds in connection with the distribution of their shares at an annual rate, as determined from time to time by the Board of Directors, of up to 0.25% of each Fund's average daily net assets.

Although the Liquidating Funds are no longer selling their shares, they are contractually obligated to make payments to persons that provide personal services to investors or who maintain shareholder accounts.

7.  Investment Transactions

There were no purchases or sales of securities by the Funds except as to short-term investments. Realized gain on investments was the result of proceeds from class action settlements of securities formerly held by the Funds.

8.  Contingencies

(a)  Indemnification Arrangements - In the normal course of business, the Funds enter into contracts that provide for general indemnifications to the counterparties to those contracts. The Company has not made any payments related to such arrangements for the year ended December 31, 2007. The Funds' maximum exposure under these arrangements is dependent upon claims that may be made against the Funds in the future and, therefore, cannot be estimated. The Company believes that the outcome of these arrangements will not have a material adverse effect on the results of operations or net asset values of the Funds.

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Van Wagoner Funds Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
Van Wagoner Funds, Inc.
San Francisco, California

We have audited the accompanying statements of assets and liabilities of the Post-Venture Fund, Mid-Cap Growth Fund and Technology Fund, each a series of the Van Wagoner Funds, Inc., including the schedule of investments as of December 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the three years in the period then ended December 31, 2005 have been audited by other auditors, whose report dated February 10, 2006 expressed unqualified opinion on such financial statements and financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian. 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 and financial highlights referred to above present fairly in all material respects, the financial position of the Post-Venture Fund, Mid-Cap Growth Fund and Technology Fund, as of December 31, 2007, the results of their operations for the year then ended, the changes in their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

  TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
February 15, 2008

Van Wagoner Funds Report of Independent Auditors

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Van Wagoner Funds Directors and Officers

The individuals listed below serve as directors and officers of the Funds. Each director serves until his successor is duly elected or until he resigns. Each of the directors oversees 6 funds. The mailing address of the directors and officers is 3 Embarcadero Center, Suite 1120, San Francisco, CA 94111.

Additional information about the Funds' directors is available in the Statement of Additional Information and is available, without charge, upon request, by calling 1-800-228-2121.

Independent Directors	Principal Occupation(s) During Past Five Years
Greg Linn Director since January 2007 Age: 52	Proprietor of Ambullneo Vineyards, a producer of fine wines, since 2001.
Edward C. Peterson Director since January 2007 Age: 54	Vice President of Peterson and Collins, Inc. a commercial, industrial and single-family housing construction company since 1977.
Edward L. Pittman Director since January 2007 Age: 51	Attorney with Thelen Reid Brown Raysman & Steiner LLP since 1999.
Andrew H. Roediger Director since January 2007 Age: 43	President of Marion Advisory Partners, LLC, a real estate development firm, since April 2004 and an Arizona registered investment adviser from May 1997 to April 2004.
Jay Jacobs Director since January 2008 Age: 49	Founder and Former Portfolio Manager, Crossover Venture Partners (long/short equity fund); Founding Partner, Thomas Weisel Partners.
Officers	Principal Occupation(s) During Past Five Years
Susan Freund Chief Compliance Officer since April 2007 President, Treasurer and Secretary since May 2007 Age: 53	Chief Compliance Officer of the Funds since April 2007; President, Treasurer and Secretary of the Funds since May 2007; Senior Counsel with Bank of the West (2001-2007)

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Van Wagoner Funds Additional Information for Shareholders

Proxy Voting Policy and Voting Record

Van Wagoner Capital Management, Inc., is responsible for exercising the voting rights associated with the securities held by the Funds. A description of the policies and procedures used by the Adviser in fulfilling this responsibility is available without charge, upon request, by calling 1-800-228-2121. It is also available on the SEC's website at www.sec.gov.

In addition, each Fund's complete proxy voting record for the 12 months ended December 31, 2007 is available without charge, upon request, by calling toll free 1-800-228-2121. It is also available on the SEC's website at www.sec.gov.

Quarterly Portfolio Disclosure

The Funds file their complete Schedule of Investments with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of the fiscal quarter. The Funds' Form N-Q is available on the SEC's website at www.sec.gov, and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the Public Reference Room may be obtained by calling 1-800-SEC-0330. In addition, the Funds' Form N-Q is available, without charge, upon request, by calling toll free 1-800-228-2121.

Van Wagoner Funds Additional Information for Shareholders

vanwagoner.com
21

VW408C  0208

Please mail correspondence to:

Van Wagoner Funds
P.O. Box 9682
Providence, RI 02940-9682

Express mail or overnight deliveries
should be sent to:

Van Wagoner Funds
101 Sabin Street
Pawtucket, RI 02860

1-800-228-2121

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Item 2. Code of Ethics.

(a)The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c)There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d)The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that it does not have an “audit committee financial expert” serving on its audit committee. While Registrant believes that each of the members of its audit committee has sufficient knowledge of accounting principles and financial statements to serve on the audit committee, none has the requisite experience to qualify as an “audit committee financial expert”; as such term is defined by the Securities and Exchange Commission.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a)The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are:

2007	$58,500
2006	$57,000

Audit-Related Fees

(b)The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2007 and $0 for 2006.

Tax Fees

(c)The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $15,000 for 2007 and $15,000 for 2006.  Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.

All Other Fees

(d)The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2007 and $0 for 2006.

(e)(1)Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

Pre-Approval of Audit and Permitted Non-Audit Services Provided to the Company

The Committee shall pre-approve all auditing services and permissible non-audit services (e.g., tax services) to be provided to the Company by the Accountant, including the fees therefore.  The Committee may delegate to one or more of its members the authority to grant pre-approvals.  In connection with such delegation, the Committee shall establish pre-approval policies and procedures, including the requirement that the decisions of any member to whom authority is delegated under this section (B) shall be presented to the full Committee at each of its scheduled meetings.

Pre-approval for a permitted non-audit service shall not be required if: (1) the aggregate amount of all such non-audit services is not more than 5% of the total revenues paid by the Company to the Accountant in the fiscal year in which the non-audit services are provided; (2) such services were not recognized by the Company at the time of the engagement to be non-audit services; and (3) such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by one or more members of the Committee to whom authority to grant such approvals has been delegated by the Committee.

Additionally, the Committee shall pre-approve the Accountant’s engagements for non-audit services with the Adviser and any affiliate of the Adviser that provides ongoing services to the Company in accordance with the foregoing paragraph, if the engagement relates directly to the operations and financial reporting of the Company, unless the aggregate amount of all services provided constitutes no more than 5% of the total amount of revenues paid to the Accountant by the Company, the Adviser and any affiliate of the Adviser that provides ongoing services to the Company during the fiscal year in which the services are provided that would have to be pre-approved by the Committee pursuant to this paragraph (without regard to this exception).

(e)(2)The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b)  Not applicable

(c)  100%

(d)  Not applicable

(f)The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was zero per cent (0%).

(g)The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2007 and $0 for 2006.

(h)The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed registrants.

Not applicable.

Item 6. Schedule of Investments.

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a)The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.
(a)(2)	Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)	Not applicable.

(b)Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant) Van Wagoner Funds, Inc.

By (Signature and Title)*	/s/ Susan Freund
	Susan Freund, Chief Executive Officer & Chief Financial Officer
	(principal executive officer)

Date 3/5/08

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Susan Freund
	Susan Freund, Chief Executive Officer & Chief Financial Officer
	(principal executive officer & principal financial officer)

Date 3/5/08

* Print the name and title of each signing officer under his or her signature.