FOMO for various stake holders

Hype = FOMO 

A rise in FOMO also stems from the trend for startups to create as much ‘hype’ as possible, as a way to boost
their value and speed up investment rounds.
A recent post perfectly captured the zeitgeist amongst entrepreneurs, offering advice on creating the
maximum FOMO possible amongst VCs, claiming: “Generating gossip and FOMO isn’t 100% of successful
fundraising, but it is often the difference between a fast process or a long death march.”

What is FOMO in Marketing?

FOMO marketing is a form of marketing where you leverage the consumers’ desire to grab every opportunity
that they get. The messaging in it is framed such that you push the customers to make an impulse purchase
rather than regretting the lack of action later.

Examples- The way you convey your messages to customers

 You can use phrases such as:
 You'll miss this offer,
 This is your last chance to buy‚
 Time's running out,
 Last few spots left‚
Your message needs to push the audience to take action instantaneously. Make them feel that if they
don't take action now, they'll regret their decision of not doing so.
 Expedia shows that only 5 rooms are available in this hotel. This is sure to push people to book the
room.
What is the FOMO Marketing Strategy?

1. Creating Urgency- Some common call to action that is typically used to induce a sense of urgency
in FOMO marketing includes:
Act Now
Only (x amount ) remaining 
Time is of the essence 
Hurry before it’s too late
Limited spots available 

2. Specific Time Limit- Nothing creates a greater FOMO than a hard time limit. If people feel like they
only have a certain amount of time to take action for a specific deal, sale or opportunity they are
most likely to take action.
This is commonly seen in specific internet marketing tactics that have a countdown in place for
you to make a purchase for a product or otherwise the deal or sale will expire. It’s very effective if
you are selling digital products or services. 

3. Social Proof- Highlights The Feeling of Missed Opportunity- The FOMO feeling of missed
opportunity is a common marketing tactic that is used to pull on your emotional strings in order
to get you to think about how you would feel if you missed a good deal or opportunity. Common
phrases you might see being used in this type of FOMO marketing strategy includes:
 Don’t miss this amazing deal
 Act now to lock in your price
 Don’t be like the rest the crowd
 Not taking action will cost you
What does FOMO mean for investors? 
By creating a lot of hype and FOMO around their business, startups put pressure on VCs to make a decision
quickly and offer better terms than they would do otherwise. Therefore, from an investor’s perspective, it can
impact your ability to think clearly and make an objective decision. 

Another argument against acting on FOMO is that it signals that a deal has attracted too much attention
already. Max Samuel, Partner at SNÖ, an early-stage VC, believes that the job of an early-stage investor is to
find the “secret” ideas; those “built on a contrarian insight, which many do not understand to be true, or have
not yet discovered.” This means FOMO shouldn’t be an issue. 

A positive side to FOMO?

However, FOMO isn’t always a negative thing, and the ability to create this kind of hype can be a sign of a great
founder, according to Brenner. 

Looking beyond FOMO

But while some level of FOMO is inevitable – and can sometimes be positive - when investing in early-stage
companies, these forces shouldn’t divert VCs from what is really important, which is putting the right
processes and foundations in place to build a successful portfolio. 

That means getting visibility of the best deals, through attracting the most interesting companies, proactively
going after promising startups, and getting in the deal flow. In fact, there are probably two types of FOMO: the
fear of saying ‘no’ to the deal, and the fear of not even seeing the deal. I would argue that the latter is
probably the bigger worry because at least you have had the opportunity to make the call, rather than being
left out of the loop entirely.