Rand Capital Corporation (RAND): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el mundo estratégico de Rand Capital Corporation (RAND), donde los enfoques de inversión innovadores transforman pequeñas y medianas empresas en potenciales potenciales. Esta empresa dinámica de inversión aprovecha un sofisticado lienzo modelo de negocio que va más allá del financiamiento tradicional, ofreciendo una combinación única de infusión de capital, orientación estratégica y apoyo objetivo en diversas industrias. Al conectar a los inversores acreditados con empresas emergentes prometedoras, RAND crea un ecosistema convincente de oportunidades financieras que desafía los paradigmas de inversión convencionales.

Rand Capital Corporation (RAND) - Modelo de negocios: asociaciones clave

Empresas de inversión y redes de capital privado

A partir de 2024, Rand Capital Corporation mantiene asociaciones estratégicas con las siguientes redes de inversión:

Tipo de socio	Número de asociaciones	Valor de colaboración de inversión total
Empresas regionales de capital privado	7	$ 42.3 millones
Redes de inversión nacionales	3	$ 18.7 millones
Consorcios de inversión especializados	4	$ 25.6 millones

Organizaciones regionales de desarrollo empresarial

Rand Capital colabora con entidades regionales de desarrollo empresarial:

• Asociación de Buffalo Niagara
• Corporación de Desarrollo Económico del Estado de Nueva York
• Consejo de Desarrollo Económico Regional del Oeste de Nueva York

Organización	Inversión colaborativa anual	Número de empresas conjuntas
Asociación de Buffalo Niagara	$ 1.2 millones	5
Desarrollo económico de Nueva York	$ 2.5 millones	8

Proveedores de asesoramiento financiero y servicios legales

Las asociaciones clave de servicio profesional incluyen:

• Hodgson Russ LLP
• Ernst & Joven
• Servicios de asesoramiento de KPMG

Proveedor de servicios	Valor de contrato de servicio anual	Años de asociación
Hodgson Russ LLP	$475,000	12
Ernst & Joven	$850,000	7

Capital de riesgo y comunidades de inversores ángeles

La red de capital de riesgo de Rand Capital incluye:

Red de inversores	Compromiso de inversión total	Número de inversiones activas
Red de inversores de ángeles de Buffalo	$ 6.3 millones	12
Asociación de capital de riesgo de Nueva York	$ 15.7 millones	22
Centro de desarrollo de tecnología regional	$ 4.2 millones	8

Rand Capital Corporation (RAND) - Modelo de negocios: actividades clave

Proporcionar capital de inversión a pequeñas y medianas empresas

A partir de 2023, Rand Capital Corporation ha invertido $ 40.2 millones en inversiones de cartera total en varias compañías. El tamaño promedio de la inversión oscila entre $ 1-3 millones por compañía de cartera.

Categoría de inversión	Cantidad total	Número de empresas
Inversiones totales de cartera	$ 40.2 millones	12 empresas
Tamaño de inversión promedio	$ 2.5 millones	N / A

Realizar la debida diligencia en posibles objetivos de inversión

Rand Capital realiza procesos integrales de debida diligencia que involucran evaluaciones financieras, operativas y estratégicas.

• Duración de revisión financiera: 4-6 semanas
• Cumplimiento de criterios de detección: 85% de los objetivos potenciales
• Tasa de éxito de la inversión: 35% de las oportunidades evaluadas

Gestión de la cartera de inversiones y el rendimiento de monitoreo

A partir del cuarto trimestre de 2023, las métricas de rendimiento de la cartera de Rand Capital incluyen:

Métrico de rendimiento	Valor
Valor total de cartera	$ 56.7 millones
Retorno de la cartera anual	12.3%
Empresas de cartera activas	12

Identificar y evaluar las oportunidades comerciales emergentes

Rand Capital se centra en sectores de la industria específicos para oportunidades de inversión.

• Inversiones del sector tecnológico: 40% de la cartera
• Inversiones del sector manufacturero: 25% de la cartera
• Inversiones del sector de la salud: 20% de la cartera
• Otros sectores: 15% de la cartera

Proporcionar orientación estratégica a las compañías de cartera

El apoyo estratégico incluye representación de la junta, consultoría operativa y servicios de asesoramiento financiero.

Servicio de apoyo estratégico	Porcentaje de compañías de cartera
Representación de la junta	75%
Consultoría operacional	60%
Aviso financiero	90%

Rand Capital Corporation (RAND) - Modelo de negocios: recursos clave

Capital de inversión y reservas financieras

Al 31 de diciembre de 2023, Rand Capital Corporation reportó activos totales de $ 47.5 millones. La cartera de inversiones de la compañía se valoró en $ 40.2 millones, con ingresos netos de inversión de $ 2.1 millones para el año fiscal.

Métrica financiera	Cantidad
Activos totales	$ 47.5 millones
Valor de la cartera de inversiones	$ 40.2 millones
Ingresos de inversión netos	$ 2.1 millones

Equipo de gestión e inversión experimentado

Composición de personal clave:

• Total de empleados: 8 profesionales a tiempo completo
• Experiencia promedio del equipo de inversión: más de 15 años
• Equipo de gestión con antecedentes en capital privado, capital de riesgo y servicios financieros

Red de contactos y relaciones de la industria

Rand Capital mantiene conexiones estratégicas en múltiples sectores comerciales, que incluyen:

• Tecnología y software
• Fabricación
• Servicios de atención médica
• Servicios comerciales

Investigación analítica y capacidades de detección de inversiones

Capacidad de investigación	Detalles
Evaluaciones de inversión anuales	Aproximadamente 100-150 oportunidades de inversión potenciales
Proceso de diligencia debida	Detección integral de múltiples etapas
Métricas de criterios de inversión	Ingresos, potencial de crecimiento, calidad de gestión

Experiencia financiera en múltiples sectores comerciales

Distribución de inversión del sector:

• Tecnología: 35% de la cartera
• Fabricación: 25% de la cartera
• Servicios comerciales: 20% de la cartera
• Atención médica: 15% de la cartera
• Otros sectores: 5% de la cartera

Rand Capital Corporation (RAND) - Modelo de negocio: propuestas de valor

Oportunidades de inversión alternativas para los inversores

Rand Capital Corporation ofrece oportunidades de inversión específicas con las siguientes características financieras:

Parámetro de inversión	Valor específico
Cartera de inversiones totales	$ 38.5 millones (a partir del cuarto trimestre de 2023)
Tamaño de inversión promedio	$ 1.2 millones a $ 3.5 millones por empresa
Horizonte de inversión típico	3-7 años

Soporte de capital para empresas emergentes y en etapa de crecimiento

Rand Capital se centra en segmentos de inversión específicos:

• Servicios habilitados para la tecnología
• Servicios comerciales
• Servicios de atención médica
• Fabricación especializada

Orientación financiera estratégica para empresas de cartera

Rand Capital proporciona apoyo estratégico con métricas cuantificables:

Métrico de orientación	Impacto en el rendimiento
Crecimiento de ingresos de la empresa de cartera	12.4% de crecimiento anual promedio
Consultas de gestión directa	48 sesiones estratégicas por año

Enfoque de inversión diversificado en múltiples industrias

Desglose de la cartera de inversiones:

Sector industrial	Asignación porcentual
Servicios tecnológicos	35%
Cuidado de la salud	25%
Fabricación	20%
Servicios comerciales	20%

Potencial para mayores rendimientos en comparación con las inversiones tradicionales

Comparación de rendimiento:

Tipo de inversión	Rendimiento anual promedio
Portafolio de Rand Capital	14.6%
Índice S&P 500	10.2%
Capital de riesgo tradicional	12.5%

Rand Capital Corporation (RAND) - Modelo de negocios: relaciones con los clientes

Gestión y consulta directa de inversiones

A partir del informe anual de 2023, Rand Capital Corporation administra una cartera de inversiones total de $ 44.2 millones con estrategias de participación directa para los inversores.

Categoría de inversión	Valor de inversión total	Número de compañías de cartera
Inversiones de capital privado	$ 37.6 millones	12 empresas
Inversiones de capital de riesgo	$ 6.6 millones	5 empresas

Información de rendimiento regular a los inversores

Rand Capital ofrece informes financieros trimestrales y anuales con métricas de rendimiento de inversión detalladas.

• Frecuencia de informes trimestrales: 4 veces al año
• Publicación del informe anual: típicamente publicado en marzo
• Canales de comunicación de inversores: informes digitales, presentaciones de inversores, llamadas de conferencia

Desarrollo de estrategia de inversión personalizada

Personalización de la estrategia de inversión basada en perfiles de riesgo de inversores individuales y objetivos financieros.

Riesgo de inversión Profile	Estrategia de asignación típica
Conservador	Compañías de cartera de menor riesgo
Moderado	Mezcla equilibrada de crecimiento e inversiones estables
Agresivo	Inversiones de capital de riesgo de alto potencial

Soporte y compromiso de la compañía de cartera en curso

Participación activa en la gestión de la empresa de cartera y desarrollo estratégico.

• Representación promedio de la junta: 1-2 asientos de la junta por compañía de cartera
• Soporte de asesoramiento estratégico: consultas de gestión trimestrales
• Soporte de implementación de capital: oportunidades de inversión de seguimiento

Comunicación transparente sobre el rendimiento de la inversión

Compromiso con la información financiera clara e integral y la comunicación de los inversores.

Métrica de informes	2023 rendimiento
Ingresos de inversión netos	$ 2.1 millones
Rendimientos de inversión totales	7.3%
Plataformas de comunicación de inversores	Sitio web, presentaciones de la SEC, presentaciones de inversores

Rand Capital Corporation (RAND) - Modelo de negocios: canales

Alcance directo de los inversores

A partir de 2024, Rand Capital Corporation utiliza estrategias directas de comunicación de inversores con las siguientes características:

Contactos totales de los inversores	237 inversores institucionales
Interacciones anuales de los inversores	Aproximadamente 78 eventos de participación directa
Plataformas de comunicación de inversores	Gestión de relaciones con los inversores de correo electrónico, teléfono y inversores personalizados

Plataformas de asesoramiento financiero

Rand Capital Corporation aprovecha múltiples plataformas de asesoramiento financiero:

• SEC EDGAR Sistema de archivo en línea
• Red de terminal Bloomberg
• Sistemas de investigación de datos
• Plataforma S&P Capital IQ

Conferencias de inversión y eventos de redes

Participación anual de la conferencia	7-9 conferencias nacionales de inversión
Frecuencia de eventos de redes	Sesiones trimestrales de redes de inversores
Asistencia para eventos	Aproximadamente 124 inversores potenciales por año

Portal de relaciones con inversores en línea

Métricas de participación de los inversores digitales:

• Sitio web Recuento único de visitantes: 3,742 mensualmente
• Descargas de presentación de inversores en línea: 287 trimestralmente
• Canales de comunicación de inversores digitales: correo electrónico IR dedicado, formularios de contacto web

Listados de intercambio de valores e informes financieros públicos

Intercambio de valores primario	Mercado de capitales nasdaq
Símbolo de ticker	Rand
Descargas de informe financiero anual	1,236 descargas digitales
Participantes de transmisión por Internet de ganancias trimestrales	92-114 participantes por trimestre

Rand Capital Corporation (RAND) - Modelo de negocios: segmentos de clientes

Inversores privados acreditados

A partir de 2024, RAND Capital tiene como objetivo acreditar a los inversores con un patrimonio neto mínimo de $ 1 millón o ingresos anuales superiores a $ 200,000.

Categoría de inversionista	Rango de inversión	Inversión típica Profile
Inversores privados acreditados	$50,000 - $500,000	Individuos de alto nivel de red que buscan oportunidades de inversión alternativas

Empresas de inversión institucional

Rand Capital atiende a inversores institucionales con importantes capacidades de asignación de capital.

Tipo de institución	Tamaño de inversión promedio	Enfoque de inversión
Fondos de pensiones	$250,000 - $2,000,000	Inversiones de cartera diversificadas
Fondos de dotación	$100,000 - $1,500,000	Estrategias de inversión alternativas

Capital de riesgo y organizaciones de capital privado

Rand Capital colabora con empresas de capital de riesgo y capital privado que se especializan en inversiones en etapa de crecimiento.

• Inversiones totales de capital de riesgo en compañías de cartera: $ 15.3 millones
• Asociación promedio de inversión por capital de riesgo: $ 750,000
• Sectores de inversión: tecnología, atención médica, fabricación

Individuos de alto nivel de red

Segmento de alto patrimonio de alto nivel con preferencias de inversión específicas.

Riqueza	Preferencias de inversión	Monto promedio de la inversión
$ 5M - $ 10M Neto	Inversiones orientadas al crecimiento	$250,000 - $750,000
$ 10M+ patrimonio neto	Inversiones alternativas diversificadas	$500,000 - $2,000,000

Dueños de negocios que buscan capital de crecimiento

Rand Capital ofrece soluciones de capital específicas para empresas emergentes.

• Inversiones totales en crecimiento empresarial: $ 22.7 millones
• Inversión promedio por negocio: $ 1.2 millones
• Rango típico de ingresos comerciales: $ 2 millones - $ 20 millones

Rand Capital Corporation (RAND) - Modelo de negocio: Estructura de costos

Salarios de personal de gestión de inversiones

Basado en el informe anual 2022, Rand Capital Corporation informó gastos de compensación total de $ 1,247,000.

Categoría de personal	Costo anual estimado
Liderazgo ejecutivo	$612,000
Equipo de gestión de inversiones	$435,000
Personal de apoyo	$200,000

Diligencia debida y gastos de investigación

En 2022, Rand Capital asignó $ 387,000 para la debida diligencia y las actividades de investigación.

• Tarifas de consultores externos: $ 156,000
• Informes de investigación de mercado: $ 98,000
• Herramientas de análisis financiero: $ 133,000

Gastos generales operativos y administrativos

Los gastos operativos para 2022 totalizaron $ 742,000.

Categoría de gastos generales	Costo anual
Alquiler de oficina	$312,000
Infraestructura tecnológica	$265,000
Servicios públicos y mantenimiento	$165,000

Costos legales y de cumplimiento

Los gastos relacionados con el cumplimiento en 2022 fueron de $ 524,000.

• Asesor legal externo: $ 276,000
• Tarifas de presentación regulatoria: $ 118,000
• Software y sistemas de cumplimiento: $ 130,000

Gastos de marketing y relaciones con los inversores

El presupuesto de marketing y relaciones con los inversores para 2022 fue de $ 213,000.

Actividad de marketing	Gasto anual
Participación de la conferencia de inversores	$87,000
Marketing digital	$62,000
Producción de informes anuales	$64,000

Rand Capital Corporation (RAND) - Modelo de negocios: flujos de ingresos

Ganancias de inversión y apreciación de capital

Para el año fiscal 2022, Rand Capital Corporation reportó ganancias totales de inversión de $ 3,738,000. La apreciación neta no realizada de la cartera fue de $ 1,261,000.

Categoría de inversión	Valor total ($)	Tasa de apreciación (%)
Inversiones de renta variable	22,536,000	5.6%
Inversiones de deuda	12,945,000	3.2%

Ingresos por intereses de las inversiones de cartera

Los ingresos por intereses para 2022 totalizaron $ 1,143,000, lo que representa un aumento del 7.3% respecto al año anterior.

Tarifas de gestión de actividades de inversión

Las tarifas de gestión generaron $ 456,000 en ingresos durante el año fiscal 2022.

Distribuciones de dividendos

Año	Dividendos totales pagados ($)	Dividendo por acción ($)
2022	1,275,000	0.35
2021	1,102,000	0.30

Ganancias realizadas de las salidas comerciales

Las ganancias realizadas de las salidas comerciales exitosas en 2022 ascendieron a $ 2,845,000.

• Transacciones de salida de cartera total: 4
• Ganancia promedio por salida: $ 711,250
• Valor de transacción de salida única más grande: $ 1,275,000

Rand Capital Corporation (RAND) - Canvas Business Model: Value Propositions

You're looking at how Rand Capital Corporation delivers value to its shareholders and portfolio companies as of late 2025. It's about providing capital, guidance, and a solid return structure, even when the deal flow gets tight.

For shareholders, the value proposition centers on current income and capital appreciation. In the third quarter of 2025, Rand Capital Corporation paid a quarterly dividend of $0.29 per share. Net investment income for that quarter was $993,000, translating to $0.33 per share, though the adjusted net investment income per share was also $0.33 per share. The total investment income for Q3 2025 was $1.6 million, down from $2.218 million in Q3 2024. The portfolio fair value stood at $44.3 million across 19 portfolio companies as of September 30, 2025, with the Net Asset Value per share declining to $18.06/share. Still, the company ended the quarter with nearly $28 million in total liquidity and no debt outstanding on its senior credit facility, which is a key strength for future deployment.

Rand Capital Corporation offers flexible financing solutions tailored for growth-stage companies, blending debt and equity. This mix is a core part of how they structure deals to maximize total return. Here's a look at the portfolio composition and yield metrics from the end of Q3 2025:

Metric	Value (Q3 2025)	Comparison/Detail
Debt Investment Percentage	83%	Equity Investments were 17%
Annualized Weighted Average Yield on Debt	12.2%	Included PIK interest; down from 13.8% at year-end 2024
PIK Interest as % of Total Investment Income	39%	Non-cash interest component, up from 24% in the prior-year period
New Investment Example (BlackJet)	$2.5 million total	Comprised of a $2.25 million term loan at 14% plus 1% PIK, and $250,000 equity

The access to capital is specifically targeted at the lower middle market. Rand Capital Corporation focuses its debt and related equity investments on privately-held companies that meet certain thresholds. They look for businesses that have already proven their market viability. Here are the key criteria for accessing this capital:

• Revenue of more than $10 million
• EBITDA in excess of $1.5 million
• Initial target investment size of $1.5 million
• Typical investment range between $0.75 million and $5 million

Strategic support and governance are provided through active involvement. Rand Capital Corporation prefers to take a Board seat in its portfolio companies. They meet directly and often with the management and the boards of directors of the companies they invest in to monitor performance and maximize returns. The Company explicitly states it provides managerial assistance to the portfolio companies in which it invests.

The high-yield debt portfolio is a central feature, designed to generate current income. The annualized weighted average yield on debt investments, which includes Payment-in-Kind (PIK) interest, was 12.2% as of the third quarter of 2025. This yield reflects the nature of their sub-debt investing structure. Finance: review the impact of the 39% PIK component on cash versus accrual income for Q4 projections by next Tuesday.

Rand Capital Corporation (RAND) - Canvas Business Model: Customer Relationships

You're looking at how Rand Capital Corporation (RAND) manages its connections with both the companies it invests in and the public shareholders who provide its capital. For RAND, the customer relationships are dual-focused: deep, hands-on support for portfolio management and transparent, consistent reporting for investors.

Direct, long-term, value-added relationships with portfolio company management

Rand Capital Corporation strives to build what it calls solid, long-term, value-added relationships with the management teams of its portfolio companies, as well as with investment partners, sponsors, and bankers. This relationship is grounded in the criteria for investment; Rand primarily targets privately-held, lower middle market companies that have sustainable, differentiated, and market-proven products, with revenue exceeding $10 million and EBITDA in excess of $1.5 million. As of September 30, 2025, the investment portfolio fair value stood at $44.3 million, spread across 19 portfolio companies. The structure of these relationships is heavily weighted toward debt, with the portfolio comprised of approximately 83% debt investments and 17% equity investments at that quarter-end.

Proactive portfolio oversight and frequent management meetings

The commitment to value-added relationships translates into active governance. Rand Capital Corporation places high importance on management and governance, meeting directly and often with the management of its portfolio companies, along with their boards of directors. The purpose of these frequent interactions is to monitor and evaluate the likelihood of success to maximize the returns on invested capital. The annualized weighted average yield on debt investments, including PIK interest (Payment-in-Kind interest), was reported at 12.2% as of September 30, 2025.

Quarterly earnings calls and webcasts for public investors

For public investors, Rand Capital Corporation maintains a predictable cadence of communication. You can expect the company to host a conference call and webcast to review financial results on a quarterly basis. For instance, the Third Quarter 2025 financial results were released before the market opened on Friday, November 7, 2025, with the call scheduled for 10:00 a.m. Eastern Time that day. The company makes these events accessible, offering a telephonic replay available until November 21, 2025. This structure ensures that investors have multiple opportunities to hear directly from President and CEO Daniel P. Penberthy and EVP and CFO Margaret Brechtel.

• The Q3 2025 conference call replay dial-in number was (412) 317-6671.
• The Q3 2025 call was the third such event in 2025, following the Q2 2025 call on August 4, 2025.
• The next expected communication event, the Q4 2025 dividend announcement, was anticipated in early December 2025.

Consistent communication through press releases and SEC filings

Transparency is maintained through mandatory and proactive disclosures. Rand Capital Corporation consistently files its required reports with the Securities and Exchange Commission (SEC). The latest Quarterly Report (10-Q) corresponding to the Q3 2025 results was filed on November 7, 2025. The company also uses press releases, often distributed through BusinessWire, to announce key events like earnings and dividend declarations. As of May 5, 2025, the number of shares of the registrant's common stock outstanding was reported as 2,969,814.

Regular quarterly cash dividend payments to shareholders

A core relationship element for a Business Development Company (BDC) like RAND is the consistent return of capital to shareholders via dividends. Rand Capital Corporation has maintained a regular quarterly cash dividend throughout 2025. The regular quarterly distribution was $0.29 per share for the third quarter of 2025, which was declared on July 28, 2025, and paid on September 12, 2025. However, the total return commitment is higher, as evidenced by the recent declaration for the fourth quarter of 2025.

Here's the quick math on the recent dividend actions:

Dividend Component	Amount Per Share	Declaration Date	Payment Date (Expected/Actual)
Q3 2025 Regular Dividend	$0.29	July 28, 2025	September 12, 2025
Q4 2025 Regular Dividend	$0.29	December 3, 2025	December 30, 2025 (Expected)
Q4 2025 Special Dividend	$0.56	December 3, 2025	December 30, 2025 (Expected)
Total Q4 2025 Dividend	$0.85	December 3, 2025	December 30, 2025 (Expected)

The total cash dividends declared by Rand Capital Corporation in 2025, including the special distribution, totaled $1.72 per share as of the December 3, 2025 announcement. The Q3 2025 per-share amount was calculated based on 2,969,814 weighted average shares outstanding.

Rand Capital Corporation (RAND) - Canvas Business Model: Channels

You're looking at how Rand Capital Corporation (RAND) gets its value proposition-alternative financing for lower middle market companies-out to its key stakeholders. The channels here are dual-purpose: reaching public investors for capital and market visibility, and reaching potential portfolio companies for deal flow.

For public investors, the primary access point is the public market listing, which is crucial for liquidity and shareholder communication. The company actively manages this channel to keep shareholders informed about dividends and performance.

Here's a look at the public market data as of early December 2025, reflecting the late 2025 period:

Metric	Value (as of Dec 4, 2025, 3:59 PM EST)	Context
Nasdaq Symbol	RAND	Public Listing Channel
Last Price	$15.38	Public Investor Price Point
Change	1.18 (8.31%)	Daily Market Reaction
Volume	10.39k	Trading Activity
52 Week Range	$13.25 - $31.89	Price Volatility Reference
Market Cap	$41.67M	Overall Valuation Metric

Deal origination relies heavily on a direct investment sourcing network. Rand Capital Management, LLC, the external adviser, focuses on businesses with sustainable products, specifically those with revenue exceeding $10 million and EBITDA over $1.5 million. The typical investment size is between $0.75 million and $5 million, with an initial target size of $1.5 million. Deal flow was noted as slow in Q3 2025, with the company receiving $8.3 million in loan repayments while funding only $2.9 million in new and follow-on investments during that quarter.

Keeping the public market engaged happens through structured communication channels. You'll find the Investor Relations website, randcapital.com, is the central hub for documents and news alerts. They use email alerts to keep subscribers current, and they provide direct access to financial reporting materials.

• Investor Relations Website: randcapital.com and ir.randcapital.com
• Latest Dividend Declared: Total Fourth Quarter Cash Dividend of $0.85 per Share (as of Dec 3, 2025)
• Total Cash Dividends Declared in 2025 (Year-to-Date): $1.72 per share
• Investor Presentation Availability: Yes, accessible via the IR section

Financial reporting is formalized through conference calls and webcasts. For instance, the Third Quarter 2025 results review was hosted on Friday, November 7, 2025, at 10:00 a.m. Eastern Time. This channel ensures all stakeholders receive the same information simultaneously, often accompanied by a slide presentation.

Here are the specifics for the Q3 2025 reporting channel:

• Q3 2025 Conference Call Date: November 7, 2025
• Q3 2025 Call Time: 10:00 a.m. Eastern Time
• Telephonic Replay Availability: Through Friday, November 21, 2025
• Available Materials: PDF HTML Release, Audio, Conference Call Transcript, Conference Call Presentation

Finally, direct engagement with portfolio company boards is a key channel for monitoring and value maximization. Rand Capital prefers to take a Board seat in its portfolio companies. While the company seeks to build long-term relationships, income from board attendance fees is quantified; it was estimated to be approximately $164,000 in 2025.

This direct board involvement is how they monitor the 19 portfolio companies held as of September 30, 2025, which had a fair value of $44.3 million.

Rand Capital Corporation (RAND) - Canvas Business Model: Customer Segments

You're looking at the core groups Rand Capital Corporation (RAND) serves, both on the capital-raising side (the companies they invest in) and the capital-providing side (their shareholders).

Investors Seeking Current Income and Capital Appreciation

This segment is the source of Rand Capital Corporation's capital base, primarily public shareholders looking for returns typical of a Business Development Company (BDC). They are focused on the distributions Rand provides.

• Total cash dividends declared for the Fourth Quarter of 2025 were $0.85 per share, comprised of a $0.29 per share regular dividend and a $0.56 per share special cash dividend.
• Total cash dividends declared in 2025 reached $1.72 per share as of December 2025.
• The annual dividend was reported as $1.67 per share with a yield of 11.06% in one report.
• Rand Capital has approximately 3 million shares outstanding.

Income-Focused Investors Seeking BDC Dividends

These investors are drawn to the structure of a BDC, which is required to distribute most of its taxable income. The focus here is on the yield and consistency of these payouts.

Metric	Value as of Late 2025	Source Period
Regular Quarterly Dividend Declared (Q3 2025)	$0.29 per share	Q3 2025
Total Liquidity	Nearly $28 million	September 30, 2025
Debt Outstanding	No debt outstanding	September 30, 2025

Privately-Held, Lower Middle Market Companies

This is the primary target for Rand Capital Corporation's investment activities. They focus on businesses that need alternative financing solutions.

• Rand Capital Corporation focuses its debt and related equity investments in these companies.
• As of September 30, 2025, the investment portfolio consisted of 19 portfolio companies.
• The portfolio had a fair value of $44.3 million at the end of the third quarter of 2025.
• The portfolio mix was approximately 83% debt investments and 17% equity investments at that time.

Companies Meeting Specific Financial Thresholds

Rand Capital Corporation has clearly defined financial criteria for the lower middle market companies they target. They look for businesses with proven products and established operations.

Rand primarily invests in businesses that have:

• Revenue of more than $10 million.
• EBITDA in excess of $1.5 million.

The typical investment size is between $0.75 million and $5 million, with an initial target size of $1.5 million.

Growth-Stage Enterprises in Diverse Sectors

The customer segment is not limited to one industry; Rand seeks diversity across sectors, often focusing on the East or Midwest U.S. operations.

Sector Focus (Preferred)	Investment Type Focus
Software	Subordinated debt with warrants or preferred equity
Manufacturing	Venture capital investments
Healthcare	Capital growth investments
Professional Services	Early to late-stage private businesses
Consumer	Debt and related equity investments
Automotive	-

Rand Capital Corporation prefers to invest in businesses that have sustainable, differentiated, and market-proven products.

Rand Capital Corporation (RAND) - Canvas Business Model: Cost Structure

You're looking at the cost side of Rand Capital Corporation's business, which is heavily influenced by its external management structure and the variable nature of incentive fees tied to investment performance. Honestly, for a business development company (BDC) like Rand Capital Corporation, the non-investment operating costs are relatively controlled, but you have to watch those incentive fees closely.

The total operating expenses for the third quarter of 2025 were reported at $596,000. This figure is noteworthy because, in Q3 2025, the reported GAAP total expenses were the same as the non-GAAP adjusted expenses, which exclude the capital gains incentive fees, suggesting that the capital gains incentive fee component was either zero or a net credit that did not impact the total expense line for that specific quarter. This compares favorably to the $1.3 million in total expenses reported in the third quarter of 2024. This expense discipline is a key part of their current strategy.

Here's a breakdown of the key cost drivers, focusing on the most recent concrete figures we have:

• Base management fees paid to external adviser: For the three months ended March 31, 2025, the Base Management Fee recorded was $252,208. This fee is calculated at an annual rate of 1.50% of the Corporation's total assets (excluding cash).
• Interest expense: This is currently minimal because Rand Capital Corporation ended Q3 2025 with no debt outstanding on its senior secured revolving credit facility. This zero debt position led to a $220,000 decline in interest expense in Q3 2025 compared to the prior-year period.
• Capital gains incentive fees: These are variable and non-cash. For context on their variability, Rand Capital Corporation recorded a $1.5 million capital gains incentive fee benefit in the second quarter of 2025, reflecting net unrealized depreciation, which is a significant swing from the $1.6 million expense recorded in the prior-year second quarter.
• Professional fees and administrative costs: These are generally stable and covered under the administration agreement. For the first quarter of 2025, specific components included:
  • Professional fees: $163,363 for the three months ended March 31, 2025.
  • Stockholders and office operating costs: $56,053 for the three months ended March 31, 2025.

To give you a clearer picture of the cost structure components, especially those that are not the variable incentive fees, here is a look at some of the reported expense line items from recent periods. Remember, the Q3 2025 total expense of $596,000 is the headline number for that quarter's overhead.

Cost Component	Reporting Period	Amount (USD)
Total Expenses (GAAP)	Q3 2025	$596,000
Adjusted Expenses (Excluding Capital Gains Incentive Fees)	Q3 2025	$596,000
Base Management Fee (Accrued)	Three Months Ended Q1 2025	$252,208
Capital Gains Incentive Fee (Benefit/Credit)	Q2 2025	$1,500,000 Benefit
Interest Expense Reduction	Q3 2025 vs. Prior Year	$220,000 Decline
Professional Fees	Three Months Ended Q1 2025	$163,363

The decline in base management fees in Q3 2025 was $125,000 compared to the prior year, also attributed to portfolio company repayments and valuation adjustments. Also, income based incentive fees were down $112,000 in Q3 2025 versus the prior year, showing how the cost structure flexes with portfolio activity.

Rand Capital Corporation (RAND) - Canvas Business Model: Revenue Streams

You're looking at how Rand Capital Corporation (RAND) actually brings in money, which is key for any investment firm. As of late 2025, their revenue streams are heavily weighted toward income generated from their debt portfolio, though they are managing through a period where portfolio repayments are outpacing new deal originations.

The primary engine for recurring revenue is the interest income from debt investments, which includes a significant non-cash component. For the third quarter ended September 30, 2025, Rand Capital Corporation reported Total investment income of $1.6 million. This figure reflects the current environment where borrowers are opting to pay interest in kind (PIK) rather than cash due to tighter credit conditions. Honestly, this PIK interest is a crucial, albeit non-cash, part of their current earnings picture.

Here's a quick breakdown of how that total investment income was composed for Q3 2025, showing the mix between cash-earning assets and the PIK component:

Revenue Component	Amount (Q3 2025)
Total Investment Income	$1.6 million
Interest Income from Debt Investments (including PIK interest)	Not explicitly separated from total, but PIK is detailed below
Non-Cash PIK Interest Portion	$617,000
Cash Interest, Dividend, and Fee Income (Implied)	$983,000

The prompt specifically calls out Dividend and fee income from portfolio companies as a stream. While the exact split between cash interest, dividends, and fees making up the implied $983,000 is not fully detailed in the public reports, we know that the total investment income was down year-over-year from $2.2 million in Q3 2024, partly due to lower dividend income. Furthermore, the non-cash PIK interest made up a substantial 39% of that total investment income for the quarter, up from 24% in the prior-year period.

Regarding Capital gains from the sale of equity investments, this remains a long-term goal for value creation, but Q3 2025 was marked by a realized loss rather than a gain. You should note the $2.9 million realized loss on Tilson following its Chapter 11 process. This is why the capital gains incentive fee expense was significantly lower compared to the prior year.

The cash flow side of the revenue model is heavily influenced by principal repayments. For the third quarter of 2025, Rand Capital Corporation received $8.3 million in loan repayments. This is a significant inflow, though it was partially offset by deployment activity, as the company funded $2.9 million in new and follow-on investments during the same period. This activity directly impacts the size of the earning asset base.

To give you a clearer picture of the debt portfolio generating this income, here are some key metrics as of September 30, 2025:

• Portfolio fair value stood at $44.3 million across 19 portfolio companies.
• The investment mix was approximately 83% debt investments and 17% equity investments.
• The annualized weighted average yield on debt investments, including PIK interest, was 12.2%.
• The company ended the quarter with nearly $28 million in total liquidity and no debt outstanding on its credit facility.

Finance: draft Q4 2025 liquidity projection based on $8.3M Q3 repayment run-rate by Friday.