Big fish: Leveraging the fear of missing out in equity crowdfunding in the post-COVID-19 era

Luca Sabia, Robin Bell and David Bozward

Business Horizons, 2022, vol. 65, issue 1, 59-67

Abstract: In this article, we look at how to leverage the positive face of the fear of missing out (FOMO) to foster brand community-building in the context of equity crowdfunding in the post-COVID-19 era. Using thematic analysis from 15 interviews with crowd investors across Europe and North America, we investigated how FOMO influences the decision-making of crowd investors. Findings suggest that FOMO is a powerful belongingness facilitator that can support the crowd investor’s self-determination strategies and thus their willingness to take part in a crowdfunding community, sharing in its values and beliefs. FOMO can be used by entrepreneurs to activate identification mechanisms through which they can create a loyal fan base. We conclude by proposing an entrepreneurial action plan to guide the entrepreneur in making the most of FOMO in equity crowdfunding ventures.

Keywords: Equity crowdfunding; FOMO; Community-building; Startup crowdfunding; Brand community; Value creation (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:65:y:2022:i:1:p:59-67

DOI: 10.1016/j.bushor.2021.09.006

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