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As 2023 comes<\/span> to an end, it is only natural to reflect on what happened in the markets we cover. But when it comes to cannabis, the answer is \u201cnot much,\u201d which won\u2019t help cannabis startups that are already facing a challenging funding environment.<\/p>\n Namely, 2023 wasn\u2019t the year that Germany legalized adult recreational cannabis use. That matters because that\u2019s not what the legal cannabis market once anticipated, and whenever there is misalignment between reality and what investors expected, especially when public companies boosted said expectations<\/a>, it is rarely good news. Or at least, not for everyone.<\/p>\n \u201cOne trend to look out for in 2024 is consolidation,\u201d said cannabis-focused investor Matt Hawkins, a managing principal at specialized VC firm Entourage Effect Capital. \u201cCompanies have spent significant capital in preparation for a sizable commercial market in Germany. [As] the chances of that happening fade, companies might not be able to support their operations without joining forces.\u201d<\/p>\n Let\u2019s take a look at what to remember from 2023 and what to expect in 2024, with help from a brand-new global cannabis report<\/a> from market intelligence firm Prohibition Partners.<\/p>\n The expectations that the EU\u2019s most populated country might legalize recreational marijuana didn\u2019t come out of thin air; this possibility was very much on the table ever since a traffic light coalition<\/a> took power in Germany in December 2021. But this coalition of social democrats, liberals and greens watered down its plans so much since then that one has to wonder how well prepared it was to overcome legal challenges that shouldn\u2019t have come as a surprise.<\/p>\n<\/p><\/div>\nWhat didn\u2019t happen<\/h2>\n