Venture capitalists are renowned throughout the world for investing in small businesses and helping them to convert into a large scale entity. Venture capitalist investment have been around for a long time and has been an active part of the financial system. The fundamental aim of venture capitalists is to invest in small scale businesses that are under-funded but still have a successful and potential business model. Venture capitalists analyze all aspects of the business and if the revenue streams seem sound and profitable, the investment firms pump in money in order to increase revenue streams, and get a certain percentage cut out of the business.
The new investment
Even as venture capitalists have a sound and regulated market of the financial system in America, the real estate industry, on the other hand has an unregulated and huge market scale all over the world. In the United States of America alone, there are over two million real estate licenses that exist. The market alone is worth several billions of dollars, however, since it is an unregulated market, there is no way of establishing a confirmed net worth of a company. Additionally, due to the sheer scale of the businesses, there is an unaccountable model in place that cannot determine steady revenue streams.
The real estate industry in the United States of America is also notoriously known for it being in need of technological implementations. The lack of technological implementations in the industry have been a growing challenge to the consumers in the market. The inability for the industry to adapt to recent changes in technology have been bringing down the business in terms of efficiency. The demand for the market and its conditions have been growing exponentially nonetheless. Just in the year 2015, the real estate market has grown with investments of over 1.5 billion dollars.
The overhaul of the system
This increase in revenue streams has encouraged the venture capitalist sector to invest and streamline the efficiency rate of the real estate sector. The real estate market seems to soon be getting a thorough overhaul and makeover that has not been witnessed for the longest time. Considering the importance that the real estate market and industry holds in the sphere, it depicts all the underlying problems that exist. With the speculation of interest and investment in the sector rising, the venture capitalist investments have come not a moment too soon.