California’s legalization of medical marijuana in 1996 ushered in a cannabis industry that would eventually turn into a North American “Green Rush ” nearly two decades later. The Green Rush kicked off a tsunami of opportunity for entrepreneurs and investors, but the bubble has clearly burst now and some see that as a sign of trouble for the industry. Nothing could be further from the truth.
Some cannabis companies may be struggling, but the industry as a whole is as solid as ever. An ever growing majority of Americans support legalization and the regulated market continues to grow. U.S. sales are on track to reach $30 billion by 2024 making cannabis as big as the coffee industry.
The cannabis bubble burst is a good thing in the long run. Companies are being forced to focus on fundamentals like actually running a business and turning a profit, and less on hype to attract investment dollars. You can find more of my thoughts on the Green Rush here.