Beyond the Hype: Dissecting FOMO in Fintech Deals
- bs fintech
- 4 hours ago
- 1 min read
How does FOMO distort fintech investment cycles?
When innovation is rapid, uncertainty is high, and narratives spread faster than fundamentals, traditional market discipline breaks down.
Fintech investing is especially exposed to FOMO. Valuations can detach from KPIs, capital clusters into the same subsectors, and fundraising timelines compress as investors rush to avoid missing the next “must-own” trend.
Our project investigates how FOMO shapes fintech deal-making through a behavioural finance lens. Traditional signals such as valuation multiples or deal volume alone are often insufficient, so we focus on observable indicators that reveal herd behaviour in real time.
To bridge theory and practice, we apply this framework to concrete market episodes, including the NFT hype cycle and current AI investment dynamics. We analyse round structures, valuation–fundamental disconnects, media amplification, and capital concentration to distinguish hype-driven investing from genuine value creation.
Want to understand how to spot FOMO before it peaks, and why some fintech booms end in sharp corrections while others create durable value?
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Published in December 2025
Project Team
Project Leader: Lucas Medina
Junior Analysts: Jill Pascual, Nour Khoury, Cristobal Basadre, Arthur Dupont.
Association Board :
Guillaume Abaz (President), Andrea Botero (Head of M&A and VC), Roxane Midorge (Head of Generalist), Neil Maaouni (Head of Data Analysis), Mathilde Castaigne (Head of Events), Noé Wierzba (Head of Operations).
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