In 2016, Microsoft's entry into the legal marijuana business signaled a growing mainstream interest in the cannabis industry, which has been experiencing a significant transformation due to increasing legalization efforts. Despite marijuana's status as a Schedule I illegal drug at the federal level, investors are attracted to its market potential, which grew to $1.2 billion in 2015. Venture capital (VC) funds specializing in cannabis, such as ArcView and Poseidon Asset Management, have emerged to address the burgeoning demand, raising millions to support cannabis startups. These funds are crucial for navigating the complex regulatory landscape and are distinct from traditional VC, focusing on both "plant-touching" operations and cannabis tech. While institutional investors remain cautious due to legal uncertainties, Silicon Valley's interest in cannabis tech, as evidenced by Microsoft's partnership with a cannabis fintech company, hints at potential mainstream VC involvement in the future. As the cannabis industry evolves from a black market to a mainstream market, opportunities for investment and innovation abound, though the path to widespread institutional backing remains gradual and complex.