From FOMO to FOLOF: The Hidden Reason VCs Say No
The Shift
Raising institutional VC capital has changed. Once, all you needed was to create FOMO — fear of missing out. Convince investors others were circling, and they’d rush to say yes.
Not anymore.
Enter FOLOF — Fear of Looking Foolish. This is the silent killer of deals in today’s market, particularly during a funding winter.
What is FOLOF?
Even when a VC partner likes your business, they may hesitate to pitch it to their partnership or investment committee (IC). Why? Fear of being ridiculed for backing:
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Sectors that are currently out of favor (e.g., EdTech).
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Business models deemed untouchable (pre-revenue, engagement-first).
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Ideas resembling failed bets in their portfolio.
Reputation matters in VC firms. For many investors, protecting it can override good opportunities.
How to Solve FOLOF
Dealing with FOLOF requires strategy, patience, and understanding the VC mindset. Here are three ways to navigate it:
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Reframe Your Narrative: Position your business to align with what’s trending or investable today.
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Wait It Out: VC theses and market sentiment shift every 6-12 months. Timing matters.
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Choose Your Investor Wisely: Smaller VCs or solo decision-makers are less prone to internal optics and groupthink.
FOLOF is real, and ignoring it is a rookie mistake. Adapt your strategy to address this hidden dynamic, or risk endless rejections for reasons beyond your control.