The Valley Is Still Hot...

-- Venture capitalists poured a record $3.7 billion into Silicon Valley startups in 1997--up 60% from 1996.

-- More than 53,000 jobs were created in 1997. Wages grew at nearly twice the national average.

-- 34 companies went public, raising $1.1 billion and earning a market valuation of $7.4 billion.

...But There Are Some Warning Flags

-- While some startups still aim to cre-ate new industries, many others are digging for smaller niches in the ''Wintel'' mainstream.

-- Only 15 Valley companies issued IPOs in the first half of 1998. That's against 34 for all of 1997--and 74 in all of 1996.

-- Success has a price. Freeway delays have doubled since 1994, and housing costs are the nation's highest.

DATA: PRICEWATERHOUSECOOPERS, CALIFORNIA EMPLOYMENT DEVELOPMENT DEPT., VENTUREONE CORP., BROADVIEW, BUSINESS WEEK