Post Written by Vasily Alekseenko

When it comes to fundraising, the Fear of Missing Out (FOMO) is a powerful tool that founders can leverage. Investors are always looking for the next big thing, that unicorn startup that could yield massive returns. But with so many startups vying for attention, it’s easy to get lost in the noise. That’s where FOMO comes in—when investors see momentum, whether it's through securing a lead investor or creating a buzz around your company, they often feel the pressure to jump in before they miss out.

At our recent London’s Largest Demo Day, we saw firsthand how FOMO can make a difference. One founder who moderated a panel at our event used his role to create visibility and credibility, leading to a £100,000 investment. Afterward, he told me that he was sure the deal closed because of the hype and buzz we created around him and the event. Another founder, known for her memorable branding (pink - wink wink), doubled her valuation after using the hype from our event to push her existing investor for a better deal. After her pitch last Monday 8 investors showed interest in her startup, which she skillfully used as leverage.

FOMO isn’t just about the hype; it’s about consistency. Founders should share their progress, whether through social media or targeted newsletters. You don’t have to spill all the details—sometimes, it’s enough to tell the story without revealing the plot twists. Consistent updates, even if ignored at first, build a narrative in investors’ minds, making it easier for them to act when the time is right. A little mystery can keep people intrigued while maintaining a sense of momentum.

But, creating FOMO isn’t without risks. It’s great when things are going well, but when progress stalls, it’s tough to disappear without raising eyebrows. Being open about setbacks can hurt in the short term but builds trust over time. There’s also the challenge of competition—being too transparent can give rivals a peek into your strategy. However, most great ideas are tough to steal without the right execution, so founders shouldn’t let this fear hold them back.

In the end, the key is to embrace the power of FOMO while being mindful of the balance between transparency and mystery. It’s a tricky dance, but if done right, it can be the difference between closing a deal and being left in the dust.

Subscribe to Rare Founders' for a weekly newsletter of handpicked startup events for founders and investors in London 📩 = https://rarefounders-newsletter.beehiiv.com/