#068 | Is FOMO a Smart Strategy in a Startup Pitch?

Using FOMO (Fear of Missing Out) in an investor pitch is a tactic designed to create urgency by signaling scarcity or competitive pressure. In extremely fast-moving sectors, urgency can accelerate decisions. However, turning FOMO into a standard fundraising strategy can weaken trust, damage long-term investor relationships, and create positioning risks for founders. Scarcity is rarely a strong foundation for partnership.

Urgency can be powerful.
Scarcity as manipulation is fragile.
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The other day I was at an investor event when a VC walked up to me and asked me:

"Jenny - working as a pitch coach - do you think FOMO is necessary in an investor meeting?"

I paused.

Because I've been thinking about this a lot lately.

And honestly? I think we're seeing an unhealthy trend right now.

The FOMO Epidemic

Here's what's happening:

A handful of founders have successfully used FOMO tactics to close hot rounds. They go on podcasts, write Twitter threads, and share their "playbook" as if it's universal truth.

"Create scarcity." "Set a hard deadline." "Make them feel like they're missing out."

And suddenly everyone thinks this is how fundraising is supposed to work.

But here's what those success stories don't tell you:

For every founder who closed a round using pressure tactics, there are dozens who tried the same approach and burned bridges. Those founders aren't writing blog posts about it.

What bothers me most is this: scarcity is never a healthy way to start a relationship.

Think about it in any other context.

Would you start a friendship by saying "You have one week to decide if you want to hang out with me"?

Would you begin a business partnership with "Other people want this deal, so make up your mind"?

It sets a strange tone from day one.

And here's the part that really concerns me:

If creating artificial pressure isn't naturally who you are - if it feels like putting on a performance - then you're setting yourself up for exhaustion.

Because you'll need to keep being that person.

In board meetings. In tough conversations. In moments when the company is struggling and you need your investors to trust you.

Can you sustain that intensity for years?

Or will the real you eventually show up - and leave your investors wondering who they actually backed?

The FOMO Trap 

Here's what I see founders do all the time:

They walk into investor meetings with urgency cranked to eleven. "We're closing the round in two weeks." "Other investors are already in." "This is your last chance."

And sometimes? It works.

In fast-moving industries like AI, where competition is fierce and timing is everything, a little pressure can push an investor off the fence.

But here's the part most founders forget to think about:

What happens if FOMO doesn't work?

What if no investor bites during your "closing window"?

Now you have to go back to those same people and say: "Actually... the round is still open." "We'd still love to have you."

You've just undermined your own credibility.

The urgency you created now looks like a bluff.

And investors remember that.

The Relationship Question

But there's a deeper issue here - one that goes beyond tactics.

Who do you want to be in this relationship?

Because fundraising isn't a one-time transaction.

It's the start of a partnership that could last years. Your investors will be in your cap table, on your board, in your corner (or not) when things get hard.

So ask yourself:

Is creating artificial pressure really you?

Can you keep up that level of intensity throughout the relationship?

Or will it feel exhausting - like wearing a costume that doesn't fit?

The most compelling pitches don't rely on pressure.

They rely on conviction.

When a founder truly believes in what they're building - and can articulate why now and why them - investors feel it.

That's not manufactured urgency.

That's genuine fire.

And genuine fire is sustainable. You can bring it to every investor meeting, every board call, every difficult conversation for years.

FOMO is a tactic.

Conviction is a foundation.

When FOMO Might Work (But be Cautious)

I'm not saying FOMO never works. Let me be specific about when it can make sense:

It might work when:

• Your industry moves at lightning speed (AI, crypto, certain deep tech)

• You genuinely have competitive term sheets — not bluffs

• The market timing is truly urgent

• It authentically matches your personality

It will backfire when:

• Your industry has longer investment cycles (biotech, hardware, climate)

• You're bluffing about interest you don't actually have

• The investor sees through your artificial deadline

• It doesn't match who you really are

And remember: even when it works, you've set a tone for the relationship.

You've told your investor that pressure is how you operate.

Is that the dynamic you want for the next five to ten years?

The Alternative: Urgency Without FOMO  

Here's what I tell founders who want to create momentum without resorting to artificial pressure:

You don't need to manufacture scarcity. You need to demonstrate velocity.

There's a huge difference.

FOMO says: "You're going to miss out if you don't act now."

Velocity says: "Look how fast we're moving. Do you want to be part of this?"

One is pressure. The other is proof.

Here are concrete ways to create genuine urgency:

1. Show your traction curve

Nothing creates real FOMO like actual momentum. When you can show investors that your MRR grew 25% last month, or that your waitlist doubled in three weeks, they feel the urgency themselves.

You don't have to say "the round is closing soon."

The numbers say "this train is leaving the station."

2. Share your pipeline

"We just signed our first enterprise customer and have three more in late-stage negotiations."

That's not artificial pressure. That's evidence that the market is responding.

3. Demonstrate speed of execution

"We launched our MVP eight weeks ago. Here's what we've shipped since then."

Investors know that speed compounds. When they see a team that moves fast, they naturally worry about missing the early window.

4. Be honest about your timeline

Instead of fake deadlines, share your real ones:

"We're planning to close this round by Q2 because we want to start hiring our sales team before summer."

That's not pressure. That's transparency about your business needs.

5. Let your customers create urgency

Customer testimonials, usage data, retention numbers - these speak louder than any deadline you could set.

When an investor sees that your users love your product, they don't need you to tell them to hurry up.

The Bottom Line

Some founders thrive on intensity.

Others build better relationships through patience and trust.

Neither is wrong - but you need to know which one is you.

Because at the end of the day, you're not just closing a round.

You're starting a partnership.

Choose an approach you can sustain.

That's all for this week. 
See you next week!

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