Cannabis & Alternatives — Why Cannabis Founders Need to Rethink Their Definition of Success Beyond Traditional Exits

Cannabis & Alternatives · 2026-03-24

OPENING The cannabis industry's obsession with traditional exit strategies is becoming increasingly problematic for founders. While tech startups chase IPOs and acquisitions, cannabis entrepreneurs are facing a stark reality: the conventional playbook for company exits simply doesn't apply in this uniquely constrained market.

The prevailing wisdom in cannabis has always mirrored traditional industries – build fast, scale quickly, and position for acquisition by larger players. But this approach is proving dangerously outdated in today's cannabis landscape. The fundamental challenge isn't about optimizing for the right buyer or perfecting pitch decks; it's about confronting a market where traditional buyers are conspicuously absent. This forces us to confront an uncomfortable truth: we've been operating on antiquated assumptions about what success looks like in this industry.

What's particularly telling about the current situation is how it reveals the cannabis industry's stubborn attachment to conventional business metrics and milestones. While other emerging industries have evolved their definitions of success, many cannabis entrepreneurs remain fixated on exit strategies that made sense in 2018 but are increasingly detached from today's reality. The result is a growing disconnect between founders' expectations and market realities.

This misalignment isn't just a problem for individual companies – it's creating ripple effects throughout the entire industry. When founders build their entire business strategy around an exit that may never materialize, they make decisions that prioritize short-term optics over long-term sustainability. This approach not only threatens individual businesses but also undermines the industry's overall stability and growth potential.

WHAT TO WATCH The next month will be crucial for cannabis entrepreneurs to recalibrate their understanding of success and value creation. Watch for innovative founders who are pioneering alternative paths to value creation – whether through sustainable profitability models, strategic partnerships, or novel business structures that don't rely on traditional exits. The companies that will thrive in this new paradigm won't be those waiting for a buyer to appear, but those who are actively rewriting the rules of what it means to build a successful cannabis business.