The Twenty Minute VC (20VC) · Saturday, June 27, 2026
Fomo's CEO, Paul Erlanger, explains their unconventional early funding strategy, opting for 140 angel investors instead of institutions to solve the "cold start problem" for their consumer product. This approach aimed to create distribution by giving early users ownership, which Erlanger believes was core to Fomo's success.
“So we knew we needed to solve this cold start problem. Get people on the app. So when we raised the initial round, the goal was to create distribution. And we think that our best users should have some ownership in the product.”
“And early on, what we were able to do is get people motivated by allowing them to invest in the product and create as large of a distribution channel as possible.”
“But I think that initial round was really core to the success of Fomo.”