Definition
Raising money primarily because everyone else is doing it and you're afraid of missing out, rather than because you actually need it. The startup equivalent of peer pressure at a middle school dance.
Example Usage
We raised a Series B we didn't really need because we were worried competitors would leapfrog us with more funding.
Origin
Contemporary startup slang, combining FOMO (Fear of Missing Out) with fundraising practices
Fun Fact
FOMO-driven fundraising typically leads to inflated valuations and unsustainable burn rates
Source: Contemporary startup terminology
Related Terms
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See “FOMO-driven fundraising” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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