It's been 10 years since the first streaming and royalty company, Silver Wheaton (TSX:SLW), was handed its first deal. Since then, investors have no doubt come across the handful of streaming companies that increase investor value through exposure to a wide variety of companies within the precious metals sector. To find out more about what streaming and royalty companies do, Gold Investing News (GIN) caught up with Nolan Watson, CEO of Sandstorm Gold (TSX: SSL), who gave a good overview of the history of streaming/royalty companies and the changes the resource sector can expect on the horizon. GIN: For investors, streaming and royalty companies aren't exactly a new thing, seeing as they have been around for a decade. But it might be worth it for investors to understand just how streaming/royalty companies come into being.NW: It's actually kind of an interesting story. There have probably been 50 to 70 streaming companies that attempted to start up over the last five years, and there have only been a handful of us that have been successful. Sandstorm's a bit of an aberration as a streaming company in terms of how it started off. That's because virtually every company that has started with a shell company and said, "I want to be a streaming and royalty company, and I'm going to raise money on the back of a deal, or I'm going to raise money and then deploy those deals" has failed. Streaming companies have a bit of a chicken-and-egg problem. If you don't have capital, then it's very challenging to get any company to take you seriously. Likewise, if you don't get the deal, you never get the capital.