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The value of Rand Capital Corp.'s assets dropped by 4 percent during the third quarter as the Buffalo venture capital firm wrote off its investment in a bankrupt Rochester frozen pizza maker, the company said Friday.

The value of Rand's investments fell to $9.05 million, or $1.58 per share, at the end of September, compared with $9.45 million, or $1.65 per share, at the end of June.

Most of the drop was due to the write-off of the $400,000 investment it made in January in D'Lisi Food Systems, a Rochester frozen pizza maker that filed for Chapter 11 bankruptcy reorganization in August.

Pete Grum, Rand's president, said he remains hopeful that the venture capital company will be able to recover at least some of its investment through the bankruptcy proceedings.

Rand also reduced by $100,000 the value of its $300,000 investment in G-TEC Gas Systems, a Buffalo company that makes systems that allows natural gas to be used as a fuel source in place of other gases after it lost a major customer, Grum said. G-TEC hopes to replace that business with additional foreign sales, he said.

Rand also invested $500,000 in APF Group, a Mount Vernon company that makes high quality picture frames and framed mirrors that are used in museums and art galleries. The investment was part of a $3.7 million round of financing that funded the acquisition of a company that provides materials for frames, Grum said.

In addition, Rand invested $350,000 in Innov-X Systems, a Woburn, Mass., company that makes handheld equipment that can analyze the composition of materials. Rand also has committed to invest another $250,000 in Innov-X. Rand made the investment as part of a $2.2 million round of financing, along with CEI Ventures, a Maine investment firm, and Key Bank.

After the quarter ended, Rand increased by $400,000 its investment in Synacor Inc., a Buffalo-based distributor of premium online content.


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