Rand Capital Files Formal License Application for

BUFFALO, NY --(Marketwired - April 12, 2017) - Rand Capital Corporation ( NASDAQ : RAND ) ("Rand"), a venture capital company, which invests in early stage and emerging growth businesses with unique product, service or technology concepts, today announced that it completed and filed its license application to the U.S. Small Business Administration ("SBA") to form a new Small Business Investment Company ("SBIC"). The application was filed pursuant to the "Green Light" letter received from the SBA in December 2016 inviting Rand to continue its license application process.

If approved, the license will provide Rand with a source of attractive long-term capital through the use of SBA debentures. Rand anticipates contributing $7.5 million of existing capital to the second SBIC and receiving approval for up to $15 million in debentures. This will create a $22.5 million SBIC fund.

The second SBIC fund supports Rand's long-term strategy to drive growth.

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 equity investments in early or expansion stage companies and generally lends to more mature companies. Rand looks for strong leadership who is 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: http://www.randcapital.com/ .

Safe Harbor Statement This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning receiving a new SBIC license and funding, future net asset value growth, investment returns and opportunities as well as Rand's plans for utilizing proceeds from sales of portfolio companies when and if received. These statements involve known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the portfolio companies' markets, competitor responses, and market acceptance of their products and services and other factors disclosed in the Corporation's periodic reports filed with the Securities and Exchange Commission. Consequently, such forward looking statements should be regarded as the Corporation's current plans, estimates and beliefs. The Corporation assumes no obligation to update the forward-looking information contained in this release.