Business development company investing in early to growth-stage companies.
Rand Capital Corporation, based in Buffalo, New York, operates as a business development company and regulated investment company specializing in private equity investments. With a focus on the lower middle market and small to medium-sized privately held companies, Rand Capital prefers equity or debt instruments for its investments, primarily avoiding the real estate sector. The firm targets companies that innovate in new products, technologies, or services across sectors including healthcare, consumer products, manufacturing, software, and professional services. Rand Capital aims to support businesses based in Western and Upstate New York, extending its reach to nearby regions including Canada within a three to five-hour drive from its primary location.
Typically investing between $0.5 million and $1.5 million per round, Rand Capital's total investment per company ranges from $1 million to $5 million, with potential follow-on investments totaling up to $3 million. The firm focuses on startups and companies with annual revenues up to $10 million and EBITDA up to $5 million, often taking lead investor roles within its geographical area while also participating in syndicates with investors from outside its core region. Rand Capital prioritizes minority stakes and seeks board representation in its portfolio companies, typically holding investments for five to seven years to support long-term growth strategies.
Founded in 1969, Rand Capital Corporation leverages decades of investment expertise to foster entrepreneurship and innovation in its target markets. The firm's strategic approach aims to cultivate sustainable growth and value creation, contributing to economic development within its operational footprint and beyond.