As filed with the Securities and Exchange Commission on July 28, 2006

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-09447

Jacob Internet Fund Inc.

(Exact name of registrant as specified in charter)

c/o Jacob Asset Management of New York LLC

507 Paseo de la Playa

Redondo Beach, CA 90277

(Address of principal executive offices) (Zip code)

Ryan Jacob

c/o Jacob Asset Management of New York LLC

507 Paseo de la Playa

Redondo Beach, CA 90277

(Name and address of agent for service)

(310) 421-4942

Registrant's telephone number, including area code

Date of fiscal year end: August 31

Date of reporting period: May 31, 2006

Item 1. Schedule of Investments.

	Jacob Internet Fund
	Schedule of Investments
	May 31, 2006 (Unaudited)
	Shares			Value
		COMMON STOCKS - 97.0%
		Internet - Commerce - 21.7%
	28,575	51job, Inc. - ADR *^	$	781,812
	662,420	Art Technology Group, Inc. *		2,046,878
	950,373	Autobytel Inc. *		3,069,705
	1,000	Ctrip.com International Ltd. - ADR ^		48,100
	54,821	Digital River, Inc. *(a)		2,409,931
	81,000	eBay Inc. *(a)		2,657,610
	126,273	HomeStore, Inc. *(a)		752,587
	70,000	IAC/InterActiveCorp *(a)		1,808,100
	17,100	Monster Worldwide Inc. *(a)		835,677
	991,426	Napster Inc. *		3,182,477
	1,509,466	PartyGaming plc (BP) *^		3,668,379
	163,800	TD Ameritrade Holding Corporation		2,784,600
				24,045,856
		Internet - Communications - 9.3%
	567,900	Airspan Networks Inc. *(a)		3,009,870
	167,700	Alvarion Limited *^(a)		1,217,502
	537,240	deltathree, Inc. *(a)		1,591,305
	309,800	iBasis, Inc. *(a)		2,586,830
	134,467	Openwave Systems Inc. *(a)		1,901,363
				10,306,870
		Internet - Infrastructure - 27.6%
	60,000	Adobe Systems Incorporated *(a)		1,717,800
	560,351	Agile Software Corporation *		3,692,713
	1,700	Akamai Technologies, Inc. *(a)		53,193
	20,000	Apple Computer, Inc. *		1,195,400
	1,380,500	CDC Corporation *^(a)		6,129,420
	830	Digital Insight Corporation *		26,851
	133,069	Internet Security Systems, Inc. *(a)		2,725,253
	338,300	Interwoven, Inc. *		3,105,594
	70,000	Macrovision Corporation *(a)		1,577,800
	566,900	ONYX Software Corporation *		2,403,656
	62,006	Open Text Corporation *^(a)		869,324
	342,988	SumTotal Systems, Inc. *		1,948,172
	555,607	webMethods, Inc. *		5,017,131
				30,462,307
		Internet - Media Content - 38.4%
	24,000	Baidu.com, Inc. - ADR *^(a)		1,867,680
	1,000,000	China.com Inc. (HK) *^		64,070
	203,000	CNET Networks, Inc. *(a)		1,778,280
	41,300	Electronic Arts Inc. *(a)		1,737,491
	16,000	Google Inc. *(a)		5,949,120
	571,800	Hollywood Media Corp. *		2,435,868
	85,686	InfoSpace, Inc. *(a)		1,942,502
	156,355	Jupitermedia Corporation *		2,331,253
	170,000	News Corporation - Class A		3,241,900
	137,100	SINA Corp *^(a)		3,364,434
	168,500	Sohu.com Inc. *^(a)		4,200,705
	1,600,000	Tencent Holdings Limited (HK) *^		3,447,004
	Jacob Internet Fund
	Schedule of Investments
	May 31, 2006 (Unaudited), Continued
	Shares			Value
		COMMON STOCKS - (continued)
		Internet - Media Content - (continued)
	188,449	TheStreet.com (a)	$	2,233,121
	102,143	THQ Inc. *(a)		2,382,996
	174,274	Yahoo! Inc. *(a)		5,505,316
				42,481,740
		TOTAL COMMON STOCKS (Cost $94,610,169)		107,296,773
	Principal
	Amount
		SHORT TERM INVESTMENTS - 2.2%
		U.S. Government Agency Obligations - 2.0%
$	2,200,000	Federal Home Loan Bank, 4.74%, 06/01/2006		2,199,710
		Total U.S. Government Agency Obligations		2,199,710
		Variable Rate Demand Notes # - 0.2%
	140,770	American Family Financial Services, 5.15%		140,770
	140,545	Wisconsin Corporate Central Credit Union, 5.03%		140,545
		Total Variable Rate Demand Notes		281,315
		TOTAL SHORT TERM INVESTMENTS (Cost $2,481,025)		2,481,025
		INVESTMENTS PURCHASED WITH CASH
		PROCEEDS FROM SECURITIES LENDING - 36.3%
		Commercial Paper - 6.3%
	2,000,000	Chesham Finance LLC,
		5.08%, Due 06/01/06		1,999,718
	2,000,000	Laguna ABS Corporation,
		5.09%, Due 06/08/06		1,991,832
	2,000,000	Park Granada,
		5.07%, Due 06/01/06		1,999,718
	1,000,000	Thornburg Mortgage Capital,
		5.04%, Due 06/02/06		995,817
		Total Commercial Paper		6,987,085
	Shares
		Money Market Mutual Funds - 0.1%
	120,469	AIM Short-Term Liquid Assets Portfolio - Institutional Class		120,469
		Total Money Market Mutual Funds		120,469
	Principal
	Amount
		Repurchase Agreements - 29.9%
		Credit Suisse First Boston Repurchase Agreement:
$	5,000,000	(Dated 05/31/06), 5.04%, Due 06/01/06 (Repurchase
		Proceeds $5,000,700), (Collateralized by U.S. Government
		Agency Mortgage & Asset Backed Securities)		5,000,000
	10,000,000	(Dated 05/31/06), 5.11%, Due 06/01/06 (Repurchase
		Proceeds $10,001,420), (Collateralized by various corporate
		bonds)		10,000,000
		Morgan Stanley Repurchase Agreement:
	18,000,000	(Dated 05/31/06), 5.09%, Due 06/01/06 (Repurchase
		Proceeds $18,002,545), (Collateralized by a Freddie Mac
		Collateralized Mortgage Obligation)		18,000,000
		Total Repurchase Agreements		33,000,000
	Jacob Internet Fund
	Schedule of Investments
	May 31, 2006 (Unaudited), Continued
		TOTAL INVESTMENTS PURCHASED WITH
		CASH PROCEEDS FROM SECURITIES
		LENDING (Cost $40,107,554)	$	40,107,554
		TOTAL INVESTMENTS (Cost $137,198,748) - 135.5%		149,885,352
		LIABILITIES LESS OTHER ASSETS - 35.5%		(39,286,661)
		TOTAL NET ASSETS - 100.0%	$	110,598,691
	*	Non Income Producing
	^	Foreign Security
	ADR	American Depository Receipt
	(a)	All or a portion of shares are on loan.
	BP	British Pounds
	HK	Hong Kong Dollars
	#	Variable rate demand notes are considered short-term obligations and are payable upon
		demand. Interest rates change periodically on specified dates. The rates listed are as of
		May 31, 2006.

The cost basis of investments for federal income tax purposes at May 31, 2006 was as follows*:

Cost of investments	$137,198,748
Gross unrealized appreciation	19,392,685
Gross unrealized depreciation	(    6,706,081)
Net unrealized appreciation	$ 12,686,604

*Because tax adjustments are calculated annually, the above table does not reflect tax adjustments. For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual or annual report.

Item 2. Controls and Procedures.

(a)   The Registrant’s principal executive officer/President and principal financial officer/Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)   There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Filed herewith.

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) Jacob Internet Fund Inc.                                            

By (Signature and Title) /s/ Ryan Jacob                                       

                                                 Ryan Jacob, President

Date           7/24/06                                                                              

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/ Ryan Jacob

                                                   Ryan Jacob, President

Date           7/24/06                                                                              

By (Signature and Title)   /s/ Francis Alexander 

                                                   Francis Alexander, Treasurer

Date          7/27/06