BUFFALO, N.Y. — Rand Capital Corporation (NASDAQ:RAND) (“Rand”), a business development company that makes venture capital investments in companies with emerging product, service or technology concepts, announced its results for the quarter ended June 30, 2015.

Second Quarter 2015 Financial Highlights

Achieved $5.16 net asset value (NAV) per share at June 30, 2015, up $0.73 per share, or 16%, over June 30, 2014

Provided $1.6 million as follow-on investments in seven portfolio companies, with the largest additional investments made in SocialFlow, Rheonix, and SciAps

Made initial investment of $500,000 in GENICON, a medical device manufacturer and distributor focused exclusively on laparoscopic surgery

Investment portfolio fair value now totals $34.3 million

Allen F. (“Pete”) Grum, President and Chief Executive Officer of Rand Capital, commented, “The second quarter was an active quarter of investing for us. Our conviction to our portfolio companies and their growth opportunities led to our further financial support of several of them this quarter, as well as an addition to the portfolio. We like the progress we are seeing in these companies and recognize the follow-on investments will help to support their continued development.”

Investment Activity and Portfolio Overview

Highlights of several of this quarter’s largest investments follow:

New to the Rand portfolio, GENICON (https://geniconendo.com/) is a recognized emerging leader in the design, production, and distribution of patented surgical instrumentation focused exclusively on laparoscopic surgery. Product concepts originate from a distinguished panel of general, gynecologic, urologic and pediatric surgeons. The panel provides oversight on product design to meet the needs of a global surgeon client base. Research & development by mechanical and electrical engineers with significant experience in medical device design and manufacturing advance the development process. Rand has a $0.5 million equity investment in GENICON.

SocialFlow, Inc. (https://www.socialflow.com/) handles social publishing for the largest and most influential publishers in the world including Facebook, Twitter, and LinkedIn while also solving complex social media problems for brand marketers and providing data-driven solutions for optimized, cost effective social media marketing campaigns. SocialFlow was recently selected as an ad-tech partner for Pinterest’s Marketing Developer Partners program. Rand now holds a $1.75 million investment in SocialFlow.

SciAps, Inc. (https://sciaps.com/) is an instrumentation company that provides durable, field-tested, portable analytical instruments to identify virtually any compounds, minerals and elements on the planet. The recent infusion of capital allows the company to develop proprietary laser technology aimed at a tenfold improvement in analyzer performance and vertical integration of key components. Additionally, the company intends to pursue new markets that have emerged for its industry-leading handheld laser induced breakdown spectrometer, including geochem, food and agriculture. Rand holds a $2.0 million investment in SciAps as of June 30, 2015.

Additional follow-on investments were provided to Rheonix, Inc., Mezmeriz, Inc., Teleservices Solutions Holdings, LLC, Intrinsiq Materials, Inc., and OnCore Golf Technology, Inc. At $2.8 million, Rheonix is Rand’s largest investment on a cost basis.

As of June 30, 2015, Rand’s portfolio consisted of 31 businesses valued at $34.3 million. It was comprised of approximately 46% in manufacturing, 21% in software, 11% in healthcare and 22% in a diverse group of other industry categories. The portfolio included approximately 23% in debt investments and 77% in equity investments.

Liquidity and Capital Resources

Rand is focused on increasing net asset value through capital appreciation and maintaining sufficient income to drive operational leverage.

Cash on hand at June 30, 2015 was $6.5 million. The primary use of cash is for follow-on and new investments to grow the Company’s portfolio and net asset value.

Strategy and Outlook

Rand’s strategy is to invest in small-to-mid-sized companies with new or unique products or services that offer competitive advantage and strong growth potential. It focuses primarily on upstate New York and Northeast businesses to more efficiently enable the Rand team to work closely with senior management and boards of portfolio companies.

Mr. Grum concluded, “We are realizing solid success with the investments we have made and plan to replicate our approach to keep growing the portfolio. Historically, over the past decade we achieved a net asset value per share compound annual growth rate of approximately 14.5%. We believe we have the momentum to continue to achieve solid returns over the long-term. To achieve our goal, our rate of investment has accelerated over the last three years while we maintained our investment discipline.”

ABOUT RAND CAPITAL

Rand Capital (NASDAQ:RAND) provides investors the ability to participate in venture capital opportunities through an investment in the Company’s stock. Rand is a Business Development Company (BDC), and its wholly-owned subsidiary is licensed by the U.S. Small Business Administration (SBA) as a Small Business Investment Company (SBIC). Rand focuses its investments in early or expansion stage companies with strong leadership that are bringing to market new or unique products, technologies or services that have a high potential for growth. Additional information can be found at the Company’s website where it regularly posts information: www.randcapital.com.