INVESTOR PRESENTATION January 2023 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO LINK RAND FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the expectations of Rand Capital Corporation ("Rand" or the "Company") to continue to be taxed as a regulated investment company ("RIC") for U.S. federal income tax purposes; the effectiveness of, and execution on, Rand's investment strategy and 2022 objectives; the investment processes to be used by Rand Capital Management under the investment advisory and management agreement with Rand, the competitive ability and position of Rand, the amount of the Company's dividend per share in future periods, and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the risk that Rand may be unable to continue to fulfill the conditions required in order to be treated as a RIC for U.S. federal income tax purposes; (2) evolving legal, regulatory and tax regimes; (3) changes in general economic and/or industry specific conditions; and (4) other risk factors as detailed from time to time in Rand's reports filed with the Securities and Exchange Commission ("SEC"), including Rand's annual report on Form 10-K for the year ended December 31, 2021, quarterly reports on Form 10-Q, the preliminary and definitive proxy statements and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand's current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this presentation. The Company's investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company's website where it regularly posts information: URL. All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. Past performance does not guarantee future results. Diversification does not guarantee a profit or protect against a loss. LINK RAND NASDAQ: RAND Externally-managed Business Development Company (BDC) Focusing our debt and related equity investments in privately-held, lower middle market companies with committed and experienced management teams in a broad variety of industries Market Capitalization $35.5 Million Common Shares Outstanding 2.6 Million 52-Week Low/High $13.04 / $18.80 Institution/Insider Ownership 11% / 67% Recent Price $13.76 Dividend Yield 5.8% Market data as of January 3, 2023 [Source: S&P Capital IQ] The Rand Building, Buffalo, NY 3 LINK RAND TRANSFORMATION OF RAND CAPITAL 1969 1996-97 2001 2016 2019 Founded New management Elected to be a Sold Gemcor for Closed $25 million team replaces Business $15.2 million - East Asset founders Development Largest exit in Management transaction Company (BDC) history 1971 Externalized investment Founding management and member of administration Nasdaq, IPO 2020 2021 2022 Paid $1.62/share Celebrated Secured $25M cash and stock 50 years on senior secured special dividend Nasdaq credit facility 1-for-9 reverse Initiated stock split quarterly Declared the 2020 dividends cash dividend of $1.33 per share in December Internally-managed, venture capital-oriented BDC Externally-managed, dividend paying BDC that lends to lower middle market companies 4 LINK RAND PORTFOLIO DISCIPLINE Investment Criteria Investment Structure Investment Terms __LINK__evenue >$2 million and EBITDA $0 to $5 million Early to late-stage private businesses Sustainable, differentiated market-accepted product Skilled, motivated and invested management Broad, diverse industries with East, South or Midwest U.S. operations Subordinated debt with warrants or preferred equity For expansion capital, growth or ownership transition Co-investorwith institutional funds; minority owner Current interest combined with payment in kind instruments Initial target size of $2 million Typically $750,000 to $5 million investments Require board observation, informational rights or board seat Typically 5-year hold period 5 Nasdaq: RAND This is an excerpt of the original content. 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Sales 2021 4,08 M - - Net income 2021 15,8 M - - Net cash 2021 0,83 M - - P/E ratio 2021 2,78x Yield 2021 2,35% Capitalization 35,8 M 35,8 M - EV / Sales 2020 11,6x EV / Sales 2021 10,6x Nbr of Employees - Free-Float 23,1% Chart RAND CAPITAL CORPORATION
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