{
  "id": 1694135,
  "title": "VCs live by FOMO. Smart founders use that against them",
  "url": "https://urgent.news/2026/08/18/vcs-live-by-fomo-smart-founders-use-that-against-them",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-18T10:02:00.000Z",
  "source": {
    "name": "Fast Company",
    "slug": "fast-company",
    "url": "https://www.fastcompany.com/91580559/vcs-live-by-fomo-smart-founders-use-that-against-them-vcs-fomo-technology-fundraising-founders"
  },
  "original_language": "en",
  "account": "In June 2026, a social crypto startup called Fomo secured $75 million in funding led by prominent venture capital firms, Index Ventures, Union Square Ventures, and Benchmark. The startup's name is fitting as it allows users to observe and replicate the actions of top traders. The announcement of the funding round featured impressive metrics, mentions of blue-chip venture capitalists, and a forward-looking statement claiming that the platform could become the largest trading app in the world.\n\nThe press release employed a masterful strategy to generate FOMO (Fear of Missing Out). It highlighted the participation of major venture firms, boasted impressive user and trading statistics, and connected the startup's growth to the broader adoption of on-chain markets. By emphasizing the opportunity for investors to be part of a potentially world-changing venture, the press release effectively tapped into VCs' desire to avoid being left behind.\n\nThe success of Fomo's fundraising strategy can be attributed to five core principles. First, greed hooks, fear converts. By combining the allure of strong metrics, third-party validation, and unique selling points, Fomo captured investors' attention and motivated them to take action. Second, lead with greed. Focusing on the potential financial upside of the investment encouraged investors to see the company as a golden opportunity. Third, make success feel inevitable by incorporating social proof. Credible investors, respected advisors, and high-profile users lent legitimacy to the startup and made the envisioned success seem more attainable.\n\nLastly, the velvet rope strategy comes into play by emphasizing exclusivity and urgency. By emphasizing the limited availability of funding and setting clear timelines, Fomo created a sense of scarcity that pushed investors to act quickly. This combination of greed, fear, social proof, and exclusivity proved highly effective in securing the substantial funding Fomo sought.",
  "summary": "In June 2026, a social crypto startup called Fomo raised $75 million in a round led by Index Ventures. The company’s name is apt: It builds virality (and FOMO) by allowing users to follow and copy top traders’ moves on the platform. The FOMO doesn’t stop there. The press release announcing the deal is a master class in FOMO generation. It mentions the “strong participation” of the blue-chip…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}