Rand Capital Corporation (RAND): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde stratégique de Rand Capital Corporation (RAND), où les approches d'investissement innovantes transforment les petites et moyennes entreprises en puissances potentielles. Cette entreprise d'investissement dynamique tire parti d'une toile de modèle commercial sophistiqué qui va au-delà du financement traditionnel, offrant un mélange unique de perfusion de capital, de conseils stratégiques et de soutien ciblé dans diverses industries. En connectant les investisseurs accrédités à des sociétés émergentes prometteuses, Rand crée un écosystème convaincant d'opportunités financières qui remet en question les paradigmes d'investissement conventionnels.

Rand Capital Corporation (RAND) - Modèle commercial: partenariats clés

Entreprises d'investissement et réseaux de capital-investissement

En 2024, Rand Capital Corporation maintient des partenariats stratégiques avec les réseaux d'investissement suivants:

Type de partenaire	Nombre de partenariats	Valeur de collaboration totale d'investissement
Sociétés régionales de capital-investissement	7	42,3 millions de dollars
Réseaux d'investissement nationaux	3	18,7 millions de dollars
Consortiums d'investissement spécialisés	4	25,6 millions de dollars

Organisations de développement commercial régional

Rand Capital collabore avec les entités régionales de développement commercial:

• Partenariat de Buffalo Niagara
• Corporation de développement économique de l'État de New York
• Conseil régional de développement économique de l'ouest de New York

Organisation	Investissement collaboratif annuel	Nombre de coentreprises
Partenariat de Buffalo Niagara	1,2 million de dollars	5
Développement économique de NYS	2,5 millions de dollars	8

Fournisseurs de conseil financier et de service juridique

Les partenariats de services professionnels clés comprennent:

• Hodgson Russ LLP
• Ernst & Jeune
• Services consultatifs KPMG

Fournisseur de services	Valeur du contrat de service annuel	Années de partenariat
Hodgson Russ LLP	$475,000	12
Ernst & Jeune	$850,000	7

Capital-risque et communautés d'investisseurs providentiels

Le réseau de capital-risque de Rand Capital comprend:

Réseau d'investisseurs	Engagement total d'investissement	Nombre d'investissements actifs
Buffalo Angel Investors Network	6,3 millions de dollars	12
Association de capital-risque de New York	15,7 millions de dollars	22
Centre de développement technologique régional	4,2 millions de dollars	8

Rand Capital Corporation (RAND) - Modèle d'entreprise: activités clés

Fournir des capitaux d'investissement aux petites et moyennes entreprises

En 2023, Rand Capital Corporation a investi 40,2 millions de dollars dans les investissements totaux de portefeuille dans diverses sociétés. La taille moyenne des investissements varie entre 1 et 3 millions de dollars par entreprise de portefeuille.

Catégorie d'investissement	Montant total	Nombre d'entreprises
Investissements totaux de portefeuille	40,2 millions de dollars	12 entreprises
Taille moyenne de l'investissement	2,5 millions de dollars	N / A

Effectuer une diligence raisonnable sur les objectifs d'investissement potentiels

Rand Capital effectue des processus de diligence raisonnable complets impliquant des évaluations financières, opérationnelles et stratégiques.

• Durée de la revue financière: 4-6 semaines
• Conformité des critères de dépistage: 85% des cibles potentielles
• Taux de réussite des investissements: 35% des opportunités évaluées

Gestion du portefeuille d'investissement et des performances de surveillance

Au quatrième trimestre 2023, les mesures de performance du portefeuille de Rand Capital comprennent:

Métrique de performance	Valeur
Valeur totale du portefeuille	56,7 millions de dollars
Retour annuel du portefeuille	12.3%
Sociétés de portefeuille actifs	12

Identifier et évaluer les opportunités commerciales émergentes

Rand Capital se concentre sur des secteurs industriels spécifiques pour les opportunités d'investissement.

• Investissements du secteur technologique: 40% du portefeuille
• Investissements du secteur manufacturier: 25% du portefeuille
• Investissements du secteur de la santé: 20% du portefeuille
• Autres secteurs: 15% du portefeuille

Fournir des conseils stratégiques aux sociétés de portefeuille

Le soutien stratégique comprend la représentation du conseil d'administration, le conseil opérationnel et les services de conseil financier.

Service de soutien stratégique	Pourcentage de sociétés de portefeuille
Représentation du conseil d'administration	75%
Conseil opérationnel	60%
Avis financier	90%

Rand Capital Corporation (RAND) - Modèle d'entreprise: Ressources clés

Capital d'investissement et réserves financières

Au 31 décembre 2023, Rand Capital Corporation a déclaré un actif total de 47,5 millions de dollars. Le portefeuille d'investissement de la société était évalué à 40,2 millions de dollars, avec un revenu de placement net de 2,1 millions de dollars pour l'exercice.

Métrique financière	Montant
Actif total	47,5 millions de dollars
Valeur du portefeuille d'investissement	40,2 millions de dollars
Revenu de placement net	2,1 millions de dollars

Équipe de gestion et d'investissement expérimentées

Composition du personnel clé:

• Total des employés: 8 professionnels à temps plein
• Expérience moyenne de l'équipe d'investissement: plus de 15 ans
• Équipe de direction avec des antécédents en capital-investissement, capital-risque et services financiers

Réseau de contacts et de relations de l'industrie

Rand Capital maintient des connexions stratégiques sur plusieurs secteurs commerciaux, notamment:

• Technologie et logiciels
• Fabrication
• Services de santé
• Services aux entreprises

Capacités de recherche analytique et de dépistage des investissements

Capacité de recherche	Détails
Évaluations d'investissement annuelles	Environ 100 à 150 opportunités d'investissement potentielles
Processus de diligence raisonnable	Dépistage complet en plusieurs étapes
Métriques des critères d'investissement	Revenus, potentiel de croissance, qualité de gestion

Expertise financière dans plusieurs secteurs d'entreprise

Distribution des investissements du secteur:

• Technologie: 35% du portefeuille
• Fabrication: 25% du portefeuille
• Services d'entreprise: 20% du portefeuille
• Santé: 15% du portefeuille
• Autres secteurs: 5% du portefeuille

Rand Capital Corporation (RAND) - Modèle d'entreprise: propositions de valeur

Opportunités d'investissement alternatives pour les investisseurs

Rand Capital Corporation offre des opportunités d'investissement ciblées avec les caractéristiques financières suivantes:

Paramètre d'investissement	Valeur spécifique
Portefeuille d'investissement total	38,5 millions de dollars (au quatrième trimestre 2023)
Taille moyenne de l'investissement	1,2 million de dollars à 3,5 millions de dollars par entreprise
Horizon d'investissement typique	3-7 ans

Soutien en capital pour les entreprises émergentes et au stade de la croissance

Rand Capital se concentre sur des segments d'investissement spécifiques:

• Services à la technologie
• Services aux entreprises
• Services de santé
• Fabrication spécialisée

Conseils financiers stratégiques pour les sociétés de portefeuille

Rand Capital fournit un soutien stratégique avec des mesures quantifiables:

Métrique d'orientation	Impact de la performance
Croissance des revenus des sociétés de portefeuille	12,4% de croissance annuelle moyenne
Consultations de gestion directe	48 sessions stratégiques par an

Approche d'investissement diversifiée dans plusieurs industries

Répartition du portefeuille d'investissement:

Secteur de l'industrie	Pourcentage d'allocation
Services technologiques	35%
Soins de santé	25%
Fabrication	20%
Services aux entreprises	20%

Potentiel de rendements plus élevés par rapport aux investissements traditionnels

Comparaison des performances:

Type d'investissement	Rendement annuel moyen
Rand Capital Portfolio	14.6%
Index S&P 500	10.2%
Capital-risque traditionnel	12.5%

Rand Capital Corporation (RAND) - Modèle d'entreprise: relations clients

Gestion et consultation directes des investissements

À partir du rapport annuel de 2023, Rand Capital Corporation gère un portefeuille d'investissement total de 44,2 millions de dollars avec des stratégies d'engagement directes pour les investisseurs.

Catégorie d'investissement	Valeur d'investissement totale	Nombre de sociétés de portefeuille
Investissements de capital-investissement	37,6 millions de dollars	12 entreprises
Investissements en capital-risque	6,6 millions de dollars	5 entreprises

Rapport de performance régulière aux investisseurs

Rand Capital fournit des rapports financiers trimestriels et annuels avec des mesures détaillées de performance d'investissement.

• Fréquence de rapports trimestriels: 4 fois par an
• Publication du rapport annuel: généralement publié en mars
• Canaux de communication des investisseurs: rapports numériques, présentations des investisseurs, conférences téléphoniques

Développement de stratégie d'investissement personnalisé

Personnalisation de la stratégie d'investissement basée sur des profils de risque d'investisseurs individuels et des objectifs financiers.

Risque d'investissement Profile	Stratégie d'allocation typique
Conservateur	Sociétés de portefeuille à risque à faible risque
Modéré	Mélange équilibré de croissance et d'investissements stables
Agressif	Investissements en capital-risque élevé

Support et engagement de la société de portefeuille en cours

Implication active dans la gestion des entreprises de portefeuille et le développement stratégique.

• Représentation moyenne du conseil d'administration: 1-2 sièges de conseil par compagnie de portefeuille
• Support de conseil stratégique: consultations de gestion trimestrielle
• Support de déploiement en capital: opportunités d'investissement de suivi

Communication transparente sur la performance des investissements

Engagement à des rapports financiers clairs et complets et à la communication des investisseurs.

Métrique de rapport	Performance de 2023
Revenu de placement net	2,1 millions de dollars
Return total d'investissement	7.3%
Plateformes de communication des investisseurs	Site Web, dépôts de la SEC, présentations des investisseurs

Rand Capital Corporation (RAND) - Modèle commercial: canaux

Sensibilisation des investisseurs directs

En 2024, Rand Capital Corporation utilise des stratégies de communication directes des investisseurs avec les caractéristiques suivantes:

Contacts totaux des investisseurs	237 investisseurs institutionnels
Interactions annuelles des investisseurs	Environ 78 événements d'engagement direct
Plateformes de communication des investisseurs	Courriel, téléphone et gestion des relations avec les investisseurs personnalisés

Plateformes consultatives financières

Rand Capital Corporation tire parti de plusieurs plateformes de conseil financier:

• SEC EDGAR EN LIGNE SYSTÈME
• Réseau terminal de Bloomberg
• Systèmes de recherche de faits
• Plateforme S&P Capital IQ

Conférences d'investissement et événements de réseautage

Participation annuelle de la conférence	7-9 Conférences d'investissement nationales
Fréquence d'événements de réseautage	Sessions de réseautage des investisseurs trimestriels
Fréquentation des événements	Environ 124 investisseurs potentiels par an

Portail des relations avec les investisseurs en ligne

Métriques d'engagement des investisseurs numériques:

• Site Web Compte de visiteurs uniques: 3 742 mois
• Téléchargements de présentation des investisseurs en ligne: 287 trimestriel
• Canaux de communication des investisseurs numériques: e-mail IR dédié, formulaires de contact Web

Listes d'échange de valeurs mobilières et rapports financiers publics

Bourse primaire	Marché des capitaux du NASDAQ
Symbole de ticker	RAND
Téléchargements annuels du rapport financier	1 236 téléchargements numériques
Participants aux webdiffaces de gains trimestriels	92-114 participants par trimestre

Rand Capital Corporation (RAND) - Modèle d'entreprise: segments de clientèle

Investisseurs privés accrédités

En 2024, RAND Capital cible les investisseurs accrédités avec une valeur nette minimale de 1 million de dollars ou un revenu annuel dépassant 200 000 $.

Catégorie d'investisseurs	Gamme d'investissement	Investissement typique Profile
Investisseurs privés accrédités	$50,000 - $500,000	Des individus à haute teneur ne sont à la recherche d'opportunités d'investissement alternatives

Entreprises d'investissement institutionnelles

Rand Capital dessert les investisseurs institutionnels ayant des capacités d'allocation de capital importantes.

Type d'institution	Taille moyenne de l'investissement	Focus d'investissement
Fonds de pension	$250,000 - $2,000,000	Investissements de portefeuille diversifiés
Fonds de dotation	$100,000 - $1,500,000	Stratégies d'investissement alternatives

Capital de capital-risque et organisations de capital-investissement

Rand Capital collabore avec des sociétés de capital-risque et de capital-investissement spécialisés dans les investissements en scène de croissance.

• Investissements totaux en capital-risque dans des sociétés de portefeuille: 15,3 millions de dollars
• Investissement moyen par partenariat en capital-risque: 750 000 $
• Secteurs d'investissement: technologie, soins de santé, fabrication

Individus à haute nette

Segment de valeur élevée ciblée avec des préférences d'investissement spécifiques.

Support de richesse	Préférences d'investissement	Montant d'investissement moyen
Valeur nette de 5 millions de dollars à 10 millions de dollars	Investissements axés sur la croissance	$250,000 - $750,000
10 millions de dollars + valeur nette	Investissements alternatifs diversifiés	$500,000 - $2,000,000

Propriétaires d'entreprise à la recherche de capital de croissance

Rand Capital fournit des solutions de capital ciblées pour les entreprises émergentes.

• Investissements totaux dans la croissance des entreprises: 22,7 millions de dollars
• Investissement moyen par entreprise: 1,2 million de dollars
• Gamme de revenus commerciaux typiques: 2 millions de dollars - 20 millions de dollars

Rand Capital Corporation (RAND) - Modèle d'entreprise: Structure des coûts

Salaires du personnel de la gestion des investissements

Sur la base du rapport annuel de 2022, Rand Capital Corporation a déclaré des frais de rémunération totale de 1 247 000 $.

Catégorie de personnel	Coût annuel estimé
Leadership exécutif	$612,000
Équipe de gestion des investissements	$435,000
Personnel de soutien	$200,000

Diligence raisonnable et dépenses de recherche

En 2022, Rand Capital a alloué 387 000 $ pour la diligence raisonnable et les activités de recherche.

• Frais de consultants externes: 156 000 $
• Rapports d'études de marché: 98 000 $
• Outils d'analyse financière: 133 000 $

Frais généraux opérationnels et administratifs

Les dépenses opérationnelles pour 2022 ont totalisé 742 000 $.

Catégorie aérienne	Coût annuel
Loyer de bureau	$312,000
Infrastructure technologique	$265,000
Services publics et maintenance	$165,000

Frais juridiques et de conformité

Les dépenses liées à la conformité en 2022 étaient de 524 000 $.

• Conseil juridique externe: 276 000 $
• Frais de dépôt réglementaire: 118 000 $
• Logiciel et systèmes de conformité: 130 000 $

Dépenses de marketing et de relations avec les investisseurs

Le budget du marketing et des relations avec les investisseurs pour 2022 était de 213 000 $.

Activité marketing	Dépenses annuelles
Participation de la conférence des investisseurs	$87,000
Marketing numérique	$62,000
Production de rapports annuels	$64,000

Rand Capital Corporation (RAND) - Modèle d'entreprise: Strots de revenus

Gains d'investissement et appréciation du capital

Pour l'exercice 2022, Rand Capital Corporation a déclaré des gains d'investissement totaux de 3 738 000 $. L'appréciation nette du portefeuille non réalisée était de 1 261 000 $.

Catégorie d'investissement	Valeur totale ($)	Taux d'appréciation (%)
Investissements en actions	22,536,000	5.6%
Investissements de la dette	12,945,000	3.2%

Revenu des intérêts des investissements de portefeuille

Les revenus d'intérêts pour 2022 ont totalisé 1 143 000 $, ce qui représente une augmentation de 7,3% par rapport à l'année précédente.

Frais de gestion des activités d'investissement

Les frais de gestion ont généré 456 000 $ de revenus au cours de l'exercice 2022.

Distributions de dividendes

Année	Total des dividendes payés ($)	Dividende par action ($)
2022	1,275,000	0.35
2021	1,102,000	0.30

Réalisé des gains des sorties commerciales

Les gains réalisés des sorties commerciales prospères en 2022 s'élevaient à 2 845 000 $.

• Total des transactions de sortie du portefeuille: 4
• Gain moyen par sortie: 711 250 $
• Valeur de transaction de sortie la plus importante: 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.