Rand Capital Corporation (Rand), is engaged in venture capital investments in small to medium sized companies in New York and its surrounding states. Its principal investment objective is to achieve long-term capital appreciation while maintaining a current cash flow from its debenture instruments. The Company invests in a mixture of debenture and equity instruments. The debt securities often have an equity piece attached to the debenture in the form of stock, warrants or options to acquire stock or the right to convert the debt securities into stock. The Company’s wholly owned subsidiary, Rand Capital SBIC, L.P., (Rand SBIC) was the primary investment vehicle during the year ended December 31, 2008. Rand SBIC was formed for the purpose of operating rand as a small business investment company. As a business development company (BDC), the Company provides managerial assistance, often in the form of a board of director’s seat, to the portfolio companies, in which it invests.