Rand Capital Corporation (RAND): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo estratégico da Rand Capital Corporation (RAND), onde abordagens inovadoras de investimento transformam pequenas e médias empresas em potenciais potências. Essa empresa de investimento dinâmico aproveita uma tela sofisticada do modelo de negócios que vai além do financiamento tradicional, oferecendo uma mistura única de infusão de capital, orientação estratégica e apoio direcionado em diversas indústrias. Ao conectar investidores credenciados a empresas promissoras emergentes, a RAND cria um ecossistema convincente de oportunidade financeira que desafia os paradigmas convencionais de investimento.

Rand Capital Corporation (RAND) - Modelo de negócios: Parcerias -chave

Empresas de investimento e redes de private equity

A partir de 2024, a Rand Capital Corporation mantém parcerias estratégicas com as seguintes redes de investimentos:

Tipo de parceiro	Número de parcerias	Valor total de colaboração de investimento
Empresas regionais de private equity	7	US $ 42,3 milhões
Redes de investimentos nacionais	3	US $ 18,7 milhões
Consórcio de investimento especializado	4	US $ 25,6 milhões

Organizações regionais de desenvolvimento de negócios

Rand Capital colabora com entidades regionais de desenvolvimento de negócios:

• Parceria de Buffalo Niagara
• Corporação de Desenvolvimento Econômico do Estado de Nova York
• Conselho de Desenvolvimento Econômico Regional Ocidental de Nova York

Organização	Investimento colaborativo anual	Número de joint ventures
Parceria de Buffalo Niagara	US $ 1,2 milhão	5
Desenvolvimento Econômico da NYS	US $ 2,5 milhões	8

Fornecedores de Consultoria Financeira e Serviço Jurídico

Principais parcerias de serviço profissional incluem:

• Hodgson Russ LLP
• Ernst & Jovem
• Serviços de Consultoria KPMG

Provedor de serviços	Valor anual do contrato de serviço	Anos de parceria
Hodgson Russ LLP	$475,000	12
Ernst & Jovem	$850,000	7

Capital de risco e comunidades de investidores anjos

A Rand Capital Capital Network inclui:

Rede de investidores	Compromisso total de investimento	Número de investimentos ativos
Rede de Investidores de Angel Buffalo	US $ 6,3 milhões	12
New York Venture Capital Association	US $ 15,7 milhões	22
Centro de Desenvolvimento de Tecnologia Regional	US $ 4,2 milhões	8

Rand Capital Corporation (RAND) - Modelo de negócios: Atividades -chave

Fornecendo capital de investimento para pequenas e médias empresas

Em 2023, a Rand Capital Corporation investiu US $ 40,2 milhões em investimentos totais de portfólio em várias empresas. O tamanho médio do investimento varia entre US $ 1-3 milhões por portfólio.

Categoria de investimento	Montante total	Número de empresas
Investimentos totais de portfólio	US $ 40,2 milhões	12 empresas
Tamanho médio de investimento	US $ 2,5 milhões	N / D

Conduzindo a devida diligência em possíveis metas de investimento

A Rand Capital realiza processos abrangentes de due diligence envolvendo avaliações financeiras, operacionais e estratégicas.

• Duração da revisão financeira: 4-6 semanas
• Critérios de triagem Conformidade: 85% das metas em potencial
• Taxa de sucesso do investimento: 35% das oportunidades avaliadas

Gerenciando portfólio de investimentos e desempenho de monitoramento

A partir do quarto trimestre 2023, as métricas de desempenho do portfólio da Rand Capital incluem:

Métrica de desempenho	Valor
Valor total do portfólio	US $ 56,7 milhões
Retorno anual do portfólio	12.3%
Empresas de portfólio ativo	12

Identificando e avaliando oportunidades de negócios emergentes

A Rand Capital se concentra em setores específicos da indústria para oportunidades de investimento.

• Investimentos do setor de tecnologia: 40% do portfólio
• Investimentos do setor manufatureiro: 25% do portfólio
• Investimentos do setor de saúde: 20% do portfólio
• Outros setores: 15% do portfólio

Fornecendo orientação estratégica para empresas de portfólio

O suporte estratégico inclui representação do conselho, consultoria operacional e serviços de consultoria financeira.

Serviço de suporte estratégico	Porcentagem de empresas de portfólio
Representação do conselho	75%
Consultoria operacional	60%
Aviso financeiro	90%

Rand Capital Corporation (RAND) - Modelo de negócios: Recursos -chave

Capital de investimento e reservas financeiras

Em 31 de dezembro de 2023, a Rand Capital Corporation registrou ativos totais de US $ 47,5 milhões. O portfólio de investimentos da empresa foi avaliado em US $ 40,2 milhões, com receita líquida de investimento de US $ 2,1 milhões no ano fiscal.

Métrica financeira	Quantia
Total de ativos	US $ 47,5 milhões
Valor da portfólio de investimentos	US $ 40,2 milhões
Receita de investimento líquido	US $ 2,1 milhões

Equipe de gestão e investimento experiente

Composição do pessoal -chave:

• Total de funcionários: 8 profissionais em tempo integral
• Experiência média da equipe de investimento: mais de 15 anos
• Equipe de gerenciamento com origens em private equity, capital de risco e serviços financeiros

Rede de contatos e relacionamentos do setor

Rand Capital mantém conexões estratégicas em vários setores de negócios, incluindo:

• Tecnologia e software
• Fabricação
• Serviços de Saúde
• Serviços de negócios

Recursos de pesquisa analítica e triagem de investimento

Capacidade de pesquisa	Detalhes
Avaliações anuais de investimento	Aproximadamente 100-150 oportunidades de investimento em potencial
Processo de due diligence	Triagem abrangente em vários estágios
Métricas de critérios de investimento	Receita, potencial de crescimento, qualidade de gerenciamento

Experiência financeira em vários setores de negócios

Distribuição do investimento setorial:

• Tecnologia: 35% do portfólio
• Fabricação: 25% do portfólio
• Serviços de negócios: 20% do portfólio
• Saúde: 15% do portfólio
• Outros setores: 5% do portfólio

Rand Capital Corporation (RAND) - Modelo de Negócios: Proposições de Valor

Oportunidades alternativas de investimento para investidores

A Rand Capital Corporation oferece oportunidades de investimento direcionadas com as seguintes características financeiras:

Parâmetro de investimento	Valor específico
Portfólio total de investimentos	US $ 38,5 milhões (a partir do quarto trimestre 2023)
Tamanho médio de investimento	US $ 1,2 milhão a US $ 3,5 milhões por empresa
Horizonte de investimento típico	3-7 anos

Apoio ao capital para empresas emergentes e em estágio de crescimento

Rand Capital se concentra em segmentos de investimento específicos:

• Serviços habilitados para tecnologia
• Serviços de negócios
• Serviços de Saúde
• Fabricação especializada

Orientação financeira estratégica para empresas de portfólio

Rand Capital fornece suporte estratégico com métricas quantificáveis:

Métrica de orientação	Impacto no desempenho
Crescimento da receita da empresa de portfólio	12,4% de crescimento anual médio
Consultas de gerenciamento direto	48 sessões estratégicas por ano

Abordagem de investimento diversificado em vários setores

Breakdown do portfólio de investimentos:

Setor da indústria	Alocação percentual
Serviços de Tecnologia	35%
Assistência médica	25%
Fabricação	20%
Serviços de negócios	20%

Potencial para retornos mais altos em comparação aos investimentos tradicionais

Comparação de desempenho:

Tipo de investimento	Retorno médio anual
Portfólio de capital Rand	14.6%
Índice S&P 500	10.2%
Capital de risco tradicional	12.5%

Rand Capital Corporation (RAND) - Modelo de Negócios: Relacionamentos do Cliente

Gerenciamento de investimentos diretos e consulta

A partir de 2023 Relatório Anual, a Rand Capital Corporation gerencia um portfólio total de investimentos de US $ 44,2 milhões com estratégias de engajamento direto para investidores.

Categoria de investimento	Valor total de investimento	Número de empresas de portfólio
Investimentos de private equity	US $ 37,6 milhões	12 empresas
Venture Capital Investments	US $ 6,6 milhões	5 empresas

Relatórios de desempenho regulares para investidores

A Rand Capital fornece relatórios financeiros trimestrais e anuais com métricas detalhadas de desempenho de investimento.

• Frequência trimestral de relatórios: 4 vezes por ano
• Publicação de relatório anual: normalmente lançado em março
• Canais de comunicação de investidores: relatórios digitais, apresentações de investidores, chamadas de conferência

Desenvolvimento de Estratégia de Investimento Personalizada

A personalização da estratégia de investimento com base em perfis de risco de investidores individuais e objetivos financeiros.

Risco de investimento Profile	Estratégia de alocação típica
Conservador	Empresas de portfólio de menor risco
Moderado	Mistura equilibrada de crescimento e investimentos estáveis
Agressivo	Investimentos de capital de risco de alto potencial

Suporte e engajamento em andamento da empresa em andamento

Envolvimento ativo no gerenciamento de empresas de portfólio e desenvolvimento estratégico.

• Representação média do conselho: 1-2 assentos da placa por portfólio
• Suporte consultivo estratégico: consultas trimestrais de gerenciamento
• Suporte de implantação de capital: oportunidades de investimento subsequente

Comunicação transparente sobre o desempenho do investimento

Compromisso com relatórios financeiros claros e abrangentes e comunicação dos investidores.

Métrica de relatório	2023 desempenho
Receita de investimento líquido	US $ 2,1 milhões
Retornos totais de investimento	7.3%
Plataformas de comunicação de investidores	Site, registros da SEC, apresentações de investidores

Rand Capital Corporation (RAND) - Modelo de Negócios: Canais

Diretor de investidor direto

A partir de 2024, a Rand Capital Corporation utiliza estratégias diretas de comunicação de investidores com as seguintes características:

Total de contatos do investidor	237 investidores institucionais
Interações anuais do investidor	Aproximadamente 78 eventos de engajamento direto
Plataformas de comunicação de investidores	Email, telefone e gerenciamento de relações com investidores personalizados

Plataformas de consultoria financeira

A Rand Capital Corporation aproveita várias plataformas de consultoria financeira:

• Sistema de arquivamento on -line da SEC Edgar
• Rede de terminais da Bloomberg
• FACTSET PESQUISA SISTEMAS
• S&P Capital IQ Platform

Conferências de investimento e eventos de rede

Participação anual da conferência	7-9 Conferências de Investimentos Nacionais
Frequência de eventos de networking	Sessões trimestrais de rede de investidores
Participação no evento	Aproximadamente 124 investidores em potencial por ano

Portal de Relações com Investidores Online

Métricas de engajamento de investidores digitais:

• Site exclusivo para visitantes contagem: 3.742 mensalmente
• Downloads de apresentação de investidores on -line: 287 trimestralmente
• Canais de comunicação de investidores digitais: email de infravermelho dedicado, formulários de contato da web

Listagens de câmbio de valores mobiliários e relatórios financeiros públicos

Bolsa de valores primária	Mercado de capitais da Nasdaq
Símbolo do ticker	Rand
Downloads anuais de relatório financeiro	1.236 downloads digitais
Participantes do webcast trimestrais	92-114 participantes por trimestre

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

Investidores privados credenciados

A partir de 2024, a Rand Capital metas credenciou os investidores com patrimônio líquido mínimo de US $ 1 milhão ou renda anual superior a US $ 200.000.

Categoria de investidores	Intervalo de investimento	Investimento típico Profile
Investidores privados credenciados	$50,000 - $500,000	Indivíduos de alta rede que buscam oportunidades alternativas de investimento

Empresas de investimento institucional

A Rand Capital atende a investidores institucionais com capacidades significativas de alocação de capital.

Tipo de instituição	Tamanho médio de investimento	Foco de investimento
Fundos de pensão	$250,000 - $2,000,000	Investimentos diversificados de portfólio
Fundos de doação	$100,000 - $1,500,000	Estratégias de investimento alternativas

Capital de risco e organizações de private equity

A Rand Capital colabora com empresas de capital de risco e private equity especializadas em investimentos em estágio de crescimento.

• Total Venture Capital Investments em empresas de portfólio: US $ 15,3 milhões
• Investimento médio por parceria de capital de risco: US $ 750.000
• Setores de investimento: tecnologia, saúde, manufatura

Indivíduos de alta rede

Segmento direcionado de alta rede com preferências de investimento específicas.

Suporte de riqueza	Preferências de investimento	Valor médio de investimento
US $ 5M - US $ 10M LENTA	Investimentos orientados para o crescimento	$250,000 - $750,000
US $ 10 milhões+ patrimônio líquido	Investimentos alternativos diversificados	$500,000 - $2,000,000

Proprietários de empresas que buscam capital de crescimento

A Rand Capital fornece soluções de capital direcionadas para empresas emergentes.

• Total de investimentos em crescimento dos negócios: US $ 22,7 milhões
• Investimento médio por empresa: US $ 1,2 milhão
• Receita de negócios típica intervalo: US $ 2 milhões - US $ 20 milhões

Rand Capital Corporation (RAND) - Modelo de negócios: Estrutura de custos

Salários do pessoal de gerenciamento de investimentos

Com base no relatório anual de 2022, a Rand Capital Corporation registrou despesas totais de remuneração de US $ 1.247.000.

Categoria de pessoal	Custo anual estimado
Liderança executiva	$612,000
Equipe de gerenciamento de investimentos	$435,000
Equipe de apoio	$200,000

Due Diligence e Despesas de Pesquisa

Em 2022, a Rand Capital alocou US $ 387.000 para as atividades de due diligence e pesquisa.

• Taxas de consultor externo: US $ 156.000
• Relatórios de pesquisa de mercado: US $ 98.000
• Ferramentas de análise financeira: US $ 133.000

Overhead operacional e administrativo

As despesas operacionais para 2022 totalizaram US $ 742.000.

Categoria de sobrecarga	Custo anual
Aluguel de escritório	$312,000
Infraestrutura de tecnologia	$265,000
Utilitários e manutenção	$165,000

Custos legais e de conformidade

As despesas relacionadas à conformidade em 2022 foram de US $ 524.000.

• Conselho Jurídico Externo: US $ 276.000
• Taxas de arquivamento regulatório: US $ 118.000
• Software e sistemas de conformidade: US $ 130.000

Despesas de marketing e relações com investidores

O orçamento de marketing e relações com investidores para 2022 foi de US $ 213.000.

Atividade de marketing	Despesas anuais
Participação da Conferência de Investidores	$87,000
Marketing digital	$62,000
Produção anual do relatório	$64,000

Rand Capital Corporation (RAND) - Modelo de negócios: fluxos de receita

Ganhos de investimento e apreciação de capital

Para o ano fiscal de 2022, a Rand Capital Corporation registrou ganhos totais de investimento de US $ 3.738.000. A apreciação líquida não realizada do portfólio foi de US $ 1.261.000.

Categoria de investimento	Valor total ($)	Taxa de apreciação (%)
Investimentos em ações	22,536,000	5.6%
Investimentos em dívida	12,945,000	3.2%

Receita de juros de investimentos em carteira

A receita de juros de 2022 totalizou US $ 1.143.000, representando um aumento de 7,3% em relação ao ano anterior.

Taxas de gerenciamento de atividades de investimento

As taxas de gerenciamento geraram US $ 456.000 em receita durante o ano fiscal de 2022.

Distribuições de dividendos

Ano	Dividendos totais pagos ($)	Dividendo por ação ($)
2022	1,275,000	0.35
2021	1,102,000	0.30

Ganhos realizados de saídas de negócios

Os ganhos realizados com saídas de negócios bem -sucedidas em 2022 totalizaram US $ 2.845.000.

• Transações de saída total do portfólio: 4
• Ganho médio por saída: US $ 711.250
• Maior Valor da transação de saída única: $ 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.