Scale is the only way forward. If you’re not vertically integrated,
you’re not built to last.
Analyst reports, investor outlooks, and industry headlines can all seem to reinforce the same message: bigger is better, depth equals survival.
And yes, there are advantages to going deep. For MSOs and larger operators, vertical integration reduces supply chain risk, tightens compliance, and protects margins through economies of scale. The biggest firms are using it to shape markets, lead M&A, and drive consistency across brands and channels.
But that’s not the whole story, and it doesn’t always reflect what we’re seeing on the ground.
Stacking cultivation, manufacturing, and retail under one roof takes serious capital, time, and operational muscle. In a volatile, high-friction industry like cannabis, vertical integration can quickly become a liability if it isn’t properly staffed and funded.
At FundCanna, we work with operators across every vertical and every market. Some are integrated. Most are not. And those thriving aren’t always the ones with the deepest stack. Success often comes from having the clearest plan.
The operators we see making it work know what they do best. They stay tight on cash. They move quickly when opportunity shows up, and avoid overextending when it doesn’t.
That kind of focus and flexibility? It plays.
In fact, single-state operators (SSOs) are outperforming MSOs in some markets by staying more capital-efficient and brand-focused. Boutique cultivators like LOWD are carving out loyal followings in niche categories.
Microbusiness license holders are doing more with less, producing, packaging, and selling without the overhead of massive infrastructure. And hybrid retail models, like Humboldt’s Green Rush Cannabis + Gold Rush Coffee, are reaching local customers in ways national brands often can’t.
Even within the MSO ranks, the picture is shifting. In states like California and Michigan, large operators are sourcing flower and licensing genetics from small growers instead of relying only on in-house supply. Others are consolidating, exiting markets where margins don’t justify a footprint, and leaving space for smaller, more agile players to step in.
The bottom line? Big can work. Deep can work. But neither guarantees staying power. This market is testing everyone—from the largest MSOs to the smallest independents. The operators making it through aren’t always the biggest; they’re the ones who know how to adapt.
At FundCanna, we finance cannabis companies at all stages of growth. What we’ve learned is that success isn’t about structure, it’s about strategy, and having the capital to maneuver when timing matters. It’s about optionality when conditions shift. It’s about staying in the game long enough to win it.
Depth works for some. But it’s not the only path forward. If you’re vertically integrated and it’s working for you, great. But the industry needs providers of all sizes and specialties. And right now, discipline, clarity, and control may be worth more than depth.
Adam Stettner is an entrepreneur, financial executive and founder/CEO of FundCanna, a leading provider of financial solutions for the cannabis industry. With over 30 years of experience in business and capital markets, throughout his career he has funded over $20 Billion to consumers and businesses nationwide. He is a vocal advocate for balanced, logical, data-driven policy in emerging or underserved industries.
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