Rand Capital : Conference Call Presentation Q2 2023

SECOND QUARTER 2023 FINANCIAL RESULTS

August 4, 2023

Daniel P. Penberthy

President & CEO

Margaret W. Brechtel

EVP & CFO

© 2023 Rand Capital Corporation

Nasdaq: 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 2023 objectives; the investment processes used by its external investment adviser, Rand Capital Management, LLC 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, 2022, 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: https://www.randcapital.com/.

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.

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© 2023 Rand Capital Corporation

Nasdaq: RAND

SECOND QUARTER 2023 EXECUTION

• Total investment income increased 34% to $1.8 million over the 2022 second quarter
• • Driven by strong growth in interest and fee income
• Net investment income per share was $0.19 compared with $0.55 in the prior-year period; Adjusted net income per share was $0.38, up from $0.29 in the prior-year period1
• Net asset value per share was $23.792, up 3% sequentially
• Total investments were $4.7 million in Q2 2023
• Received $6.8 million in proceeds from single portfolio investment company sale

Delivering Cash Dividends:

• Paid $0.25 per share cash dividend for the second quarter in June 2023
• Announced quarterly dividend of $0.25 per share for third quarter 2023

1. See attached description of this Non-GAAP financial measure and reconciliation table for adjusted net investment income per share
2. Net asset value per share amounts based on weighted average shares outstanding

© 2023 Rand Capital Corporation

The Rand Building, Buffalo, NY

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Nasdaq: RAND

PORTFOLIO MIX

Fair Value Portfolio Mix

($ in millions)

$68.2	$66.8
$7.8	$7.4
$21.0	$19.2
$39.4	$40.2
	Q1 2023		Q2 2023
	Portfolio Mix
	(# of Companies)
30	29
6	6
9	8
15	15
	Q1 2023		Q2 2023
Publicly Traded Stock		Equity		Debt

© 2023 Rand Capital Corporation

Fair value change reflects valuation adjustments on ACV Auctions and Open Exchange, as well as Dealer Solutions and Design (DSD) sale, partially offset by new investment in INEA

Mix at quarter-end, based on fair value:

60% Fixed-rate debt investments

29% Equity investments in private companies

11% Publicly traded equities (includes dividend paying BDCs and ACV Auctions stock)

Sold remaining small equity position in Somerset Gas

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Nasdaq: RAND

Q2 2023 INVESTMENTS & EXITS

Investments

A stocking distributor of controlled expansion alloys,

electronic grade nickels, refractory grade metals and alloys,

and soft magnetic alloys

Funded $4.3 million, consisting of $3.3 million of senior subordinated debt and $1.0 million of preferred equity

Follow on debt investment of $390,000

Total debt and equity investment in ITA had a fair value of $4.0 million at quarter-end

Blind and shade manufacturer

Exits During the Quarter

DSD was sold in June
2023 - In total, RAND	Sold 125,000
received $6.8 million	shares for a	Sold small equity position
of proceeds, which	realized gain of	in Somerset Gas
included a net gain of	$1.7 million
$2.5 million
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© 2023 Rand Capital Corporation		Nasdaq: RAND