Rand Capital Corporation

Rand Capital Corporation is a business development company that invests in private businesses. The company specializes in providing subordinated debt, which often includes warrants or preferred equity, and also makes venture capital investments. Within private equity, Rand Capital focuses on capital growth and investments in lower middle market companies. For venture capital, it targets private businesses across early to late stages of development. Rand Capital does not invest in the real estate sector. Instead, it prefers to invest in companies operating in software, professional services, manufacturing, consumer, healthcare, automotive, and public d stocks. Geographically, it focuses on operations in the East or Midwest U.S. The firm typically invests between $0.75 million and $5 million per company, with an initial target investment size of $1.5 million. Rand Capital seeks companies with more than $10 million in revenue or those with EBITDA exceeding $1.5 million and up to $5 million. It generally prefers to hold a minority stake in its portfolio companies and often seeks a Board seat. Investments are typically held for a period of up to five years.