For over a decade, Patrick Rea has been one of the most influential early-stage investors in cannabis, helping shape the ecosystem through his work at CanopyBoulder and now as Managing Director at Poseidon Garden Ventures. From accelerators to growth-stage capital, Patrick has seen the industry mature—and stall.
In this episode of High Touch, he offers a sober but hopeful view on the next evolution of cannabis: what will happen when federal reform finally arrives, how founders should prepare, and why real change will come fast when it comes.
“It’s all ready to be ready to go.”
When asked about the timing of federal reform, Patrick didn’t offer a date. But he did offer a warning:
“Everyone’s realized now you gotta have a congressional approach, an approach that is going after laws in the judicial branch… and the executive branch.”
While progress has felt stalled for years, the conversations are happening—and the pieces are in place.
“Now we’re in the room. The conversations are being had. We’re so much closer. The world has a lot of problems right now that is diverting a lot of attention from cannabis reform. But it’s right there. It’s all ready to be ready to go.”
Still, he cautions: when it happens, it will happen quickly. And only the founders who’ve done the prep work will be able to capitalize.
How to Prepare: Communicate Early and Often
For operators wondering how to plan for descheduling, federal legalization, or any other regulatory shift, Patrick has a clear answer: talk about it.
“You can’t shy away from the conversations just because you don’t know the answer to the question… Socialize the problem and what your thoughts are of the solution.”
This isn’t just good risk management—it’s about aligning teams, boards, and investors before the moment strikes.
“When it happens, it’s not like I have to introduce the problem to all these stakeholders to get them to buy in. We’ve already talked about it and it’s like, okay everybody, let’s go.”
Don't Bet on Reform—Build a Business
As bullish as Patrick is on eventual reform, he’s adamant that founders should build for the current reality—not a hoped-for future.
“Every entrepreneur in cannabis and every investor in cannabis should underwrite the status quo. We have a pretty stable foundation—the state legal cannabis business.”
Even if federal change never arrives, Patrick argues that there’s a path forward. The state-by-state market now accounts for more than $30 billion, with another $30 billion estimated in intoxicating hemp products.
The playbook? Cash flow, control, and community.
“Absent some change on the federal level, every founder should be driving towards a profitable business that controls its own destiny.”
Don’t Wait—Get Ready
Patrick compares the coming wave of reform to his experience in the natural products industry following the 1994 DSHEA legislation:
“When things started to happen, they happened fast. And the people that were ready for it won. Those that had to scramble… lost out.”
Cannabis may still be waiting on its breakout moment. But for founders, now is the time to plan, prepare, and position their companies for what's next.
