The roots of cannabis industry investments stretch back to the early 20th century, but the real momentum began in the last 25 years. After decades of prohibition, California legalized medical cannabis in 1996, followed by Colorado and Washington’s recreational legalization in 2012. These milestones opened the door for a wave of venture capital, private equity, and retail investors eager to capitalize on a new market. The initial phase was marked by speculation and volatility, with many early-stage companies attracting capital based on hype rather than fundamentals.