Profile: Rand Capital Corp (RAND.O)
10 Jul 2014
Rand Capital Corporation (Rand), incorporated on February 24, 1969, is engaged in making venture capital investments in small to medium sized companies that are engaged in the exploitation of products or services, typically in New York and its surrounding states. The Company invests in a mixture of debt and equity instruments. The debt securities typically have an equity component in the form of stock, warrants, and options to acquire stock or the right to convert the debt securities into stock. The Company provides managerial assistance, often in the form of a board of director’s seat, to the portfolio companies, in which it invests. The Company operates as an internally managed investment company. Rand Capital SBIC, Inc. (Rand SBIC), is a wholly owned subsidiary of Rand.
The Company’s primary business is making subordinated debt and equity investments in small and medium-sized Companies. The Company typically makes investments that range from $500,000 to $1,000,000 directly to a company through equity shares or in debt or loan instruments. The debt instruments generally have a maturity of not more than five years and usually have detachable equity warrants. Interest is either paid currently or deferred. The Company’s management team identifies investment opportunities through a network of investment referral relationships. Investment proposals may, however, come to the Company’s from many other sources, including unsolicited proposals from the public and referrals from banks, lawyers, accountants and other members of the financial community. Following an initial investment in a portfolio company, the Company may make follow-on investments in the portfolio company. Follow-on investments may be made to maintain the Company’s position in a portfolio company. The Company may also be called upon to provide an additional investment to a portfolio company in order for that company to fully implement its business plans, to develop a new line of business or to recover from unexpected business problems. Follow-on investments in a portfolio company are evaluated individually and may be subject to regulatory restrictions.
The Company exit investments through the maturation of a debt security or when a liquidity event takes place, such as the sale, recapitalization, or initial public offering of a portfolio company. The Company generally disposes of its equity securities through private sales of securities to other investors or through an outright sale of the Company or a merger.
Rand Capital Corp
2200 Rand Building
BUFFALO NY 14203