(FORTUNE Magazine) – Because it traditionally takes hundreds of thousands or even millions of dollars to play, venture capital investing has been a game for big boys only. Now, through a small but growing group of limited partnerships that require minimum investments of only a few thousand dollars, little guys can try their luck too. Before they roll the dice, however, investors should recognize that along with hopes for returns big enough to break the bank come substantial risk, sizable fees, and a significant cut for the house. The sponsors or general partners raise money by selling units to thousands of investors. The general partners pool the money and buy large equity positions in as many as several dozen fledgling enterprises that have not yet gone public. In return for their large chunks of capital, sponsors take an active role in managing the companies. Finding the companies and investing in them generally takes about two years. Then there are several years of incubation while the companies grow and mature. By year five or six the partners begin to look for a return. If all goes well, their companies are gobbled up in acquisitions or go public; either way, the partnership hits the jackpot. ; In the distribution of proceeds, often the limited partners -- the investors who have put up the money -- get nearly all the profits until their investment is paid back; thereafter the general partners take 20% and the limited partners 80%. Of course many venture capital investments flop, and like a gambler rolling snake eyes the partnership ends up a loser. Either way, the sponsors cash out their positions by year ten and liquidate the partnership. All the limited partnerships listed in the table have front-end loads and annual management fees that eat away at the limited partners' return. An 8% front-end load and a 2% management fee chew up 28 cents on the dollar after ten years. Couple the fees with the 80-20 profit split and a partnership really has to hit pay dirt before an investor sees returns well into double digits. Most of the little-guy partnerships are so new that track records are almost nonexistent. Merrill Lynch sold $60 million of units in ML Venture Partners I in October 1982, with a minimum investment of $5,000. As of March 1987, it had returned $2,550 per investment. Encouraged by those results, Merrill Lynch officials say they will be putting together more partnerships. Integrated Resources of New York began selling units of Integrated Medical Venture Partners on July 1. ''What makes our partnership unique is that we only invest in health care, a field that has a tremendous number of opportunities,'' says Howard Wachtler, a managing director of the partnership. Wachtler and his team formerly made acquisitions for Pfizer. Butcher & Singer, a regional brokerage in Philadelphia, is currently selling $1,000 units of Butcher Venture Partners I, with a ten-unit minimum. This partnership will concentrate on companies in the Middle Atlantic region. Technology Funding, a San Mateo, California, company specializing in venture capital, is soliciting $30 million for Technology Funding Partners III, which will invest in high tech. Says Paul Quadros, a general partner: ''Our fund and others like it are the only way the man on the street can make a diversified venture capital investment. Putting $5,000 into the local dry cleaning shop isn't quite the same thing.'' Boettcher Venture Capital Partners, a $10.7-million partnership sponsored by Boettcher & Co., a regional brokerage in Denver, sold out in September 1984. Boettcher will start selling units in a new $15-million-to-$20-million partnership later this year.

CHART: PARTNERSHIP MINIMUM UNITS FEES PROFIT SPLIT INVESTMENT AVAILABLE INVESTOR/ SPONSOR

Boettcher Venture $5,000 no 11% front- 80/20 Capital Partners end load, Boettcher & Co. 2.9% annual 303-628-8640

Butcher Venture Partners I $10,000 yes 8% front- 95/5 until Butcher & Singer end load, payback, then 215-985-5519 3% annual 80/20

Integrated Medical $2,500 yes 16.5% front- 99/1 until Venture Partners end load, payback, then Integrated Resources 2% annual 80/20 * 800-833-3369

ML Venture Partners I $5,000 no 8% front- 80/20 Merrill Lynch end load, 212-637-7455 2.5% annual

Technology Funding $5,000 yes 15% front- 99/1 until Partners III end load, payback, then Technology Funding 6% to 1% 80/20 415-345-2200 annual

*After payback the investor gets the first 6% of profit each year and 80% of any additional profit.

CREDIT: ILLUSTRATIONS BY GARY HALLGREN CAPTION: High Stakes for Small Rollers These venture capital limited partnerships promise high risks and fees -- and maybe high returns. Some give the limited partners virtually all the profits until they recoup their original investment. DESCRIPTION: See above; Color illustration of small men moving large die.