FOMO (Fear of Missing Out)

FOMO, or Fear of Missing Out, is a phenomenon that causes people to become anxious when they fear that they are missing out on something, such as events, experiences, or opportunities. It is often associated with the idea that everyone else is having more fun than one is.

FOMO can refer to a range of experiences, from fear of not having time to attend certain social events or activities, to fear of not having the knowledge or access to products, services, or experiences. It can even manifest itself in more extreme forms where people become so consumed with fear that they make rash decisions or brush off important commitments.

FOMO is typically created in part by social media, where friends and family are constantly documenting their experiences. This can create a feeling of inadequacy and of needing to take part in order to 'keep up', or avoid feeling left out.

FOMO is often exhibited in startup communities, where founders compare themselves to other founders or companies to gauge their own progress. This can create immense pressure for founders to compete and succeed in order to prove that they can “keep up” with other successful startups. The environment of intense competition can drive founders to take risks they would not have otherwise taken and considers opportunities that may not have previously seemed important or attractive. The fear of not taking advantage of these opportunities can lead to poor decisions that can lead to the downfall of a startup.

FOMO also shows up in venture capital, where investors are constantly competing to make the best deals in order to avoid feeling as if they are missing out on major opportunities. This can create an environment of heightened competition and drive up the costs of investing.

Overall, FOMO is an important phenomenon to consider for both startups and venture capitalists as it can drive decisions that can potentially be counterproductive or even disastrous. While it can be beneficial to stay informed and take into consideration other opportunities, it is important to take into consideration the downsides as well.