Cannabis Industry - the Phoenix Will Rise Again

Every so often, industries face storms so severe that it feels like the sky is falling. In those moments, history reminds us that while some companies collapse, others adapt, survive, and ultimately thrive.

I witnessed this firsthand during the dot-com bubble. "From March 2000 to October 2002, the NASDAQ plunged nearly 77% from its peak. Thousands of internet startups disappeared, and “dot-bomb” became the nickname of the era." According to Google AI, “This event marked the end of a period of excessive speculation in internet-based companies, driven by large-scale investment and IPOs of firms with unproven business models” – does this sound familiar?

At the time, I was VP of Membership for VIC (Virtual International Community), a nonprofit that provided education and networking for 10,000 professionals in Los Angeles’ Web 1.0 community. We truly thought the government might shut down the Internet. Our association didn’t survive, but the Internet did—and today, the world cannot function without it. Many small businesses failed, but larger, better-capitalized companies weathered the storm and paved the way for the digital economy we now depend on.

Fast forward to 2025, and I see striking parallels in the cannabis industry. When adult-use cannabis was legalized in California in 2016, the energy and optimism reminded me of the Internet boom of the late ’90s. But, as with the dot-com era, heavy-handed and constantly shifting government regulations have made it nearly impossible for many smaller operators to survive. The result? A thriving black market and shuttered businesses.

Yet, just as with the Internet, this is not the end—it’s a painful evolution. The cannabis industry is consolidating, recalibrating, and finding its way forward. Some businesses will not make it. But others will adapt, innovate, and emerge stronger.

The storm is real—but so is the resilience. History shows us that the phoenix always rises.

Learn how others are surviving and thriving at the IgniteIt Conference on October 8 (https://www.cannabismarketspotlight.com/california#AgendaSection). I look forward to attending and interviewing some of these industry business leaders.