Top 5 Mistakes Life Science Companies Make When Communicating to Investors

Messaging Missteps That Can Cost You Funding

Securing investment in life sciences isn’t just about having groundbreaking science — it’s about telling the right story to the right audience. But what you need to understand is that one size story does not fit all. While some investors specialize in biotech and diagnostics—often with PhDs on their team or at the helm—others have limited scientific expertise and instead focus on financial projections, market potential, and a compelling narrative.

The challenge? Too many life science companies misfire when communicating their value, leaving investors confused, skeptical, or uninterested. Why? Because they don’t understand their audience.

Mistake #1: Leading with Science Instead of the Problem

Too many pitches start with technology rather than why it matters!

The Wrong Way: 
We developed a novel CRISPR-based molecular diagnostic platform that integrates AI for enhanced specificity.

The Right Way: 
Current diagnostic tests miss 30% of cases. Our AI-powered CRISPR technology reduces false negatives, improving early detection and saving lives.

How we fixed it: Investors care about the impact first—hook them with the problem, then explain your solution. 

Mistake #2: Overloading with Jargon & Data

Not every investor has a PhD. But even those who do, do not want to decode a wall of scientific text. 

The Wrong Way:  Our platform leverages next-gen sequencing with an adaptive hybridization capture system, achieving a 99.97% concordance rate.

The Right Way: Our test is faster and more accurate than traditional sequencing, making early disease detection easier and more affordable.

How We Fixed It:  Keep technical details concise and explain them in layman’s terms.

 
Mistake #3: Overpromising or Ignoring Risks
 
The Wrong Way: Our AI-driven drug discovery platform guarantees breakthrough cures for rare diseases.

The Right Way: Our AI-driven platform accelerates drug discovery for rare diseases by identifying promising candidates faster, with early data suggesting a higher success rate in preclinical models.

How We Fixed It: Avoid absolute claims—investors value measurable progress and realistic expectations over exaggerated guarantees. Highlight the potential impact while acknowledging development stages.
 
Mistake #4: Ignoring the Competitive Landscape

Experienced investors can spot gaps in your market analysis a mile away—make sure your assessment is realistic, well-researched, and defensible.

The Wrong Way: We really have no direct competitors. Nobody is doing what we’re doing.

The Right Way: While no one offers our exact approach, companies X and Y provide similar solutions. Here’s why we are different.

How We Fixed It: Investors expect competition—even if it’s with the status quo. Show that you understand the market, know your differentiators, and can compete effectively.

Mistake #5  Focusing Too Much on Science Not Strategy

Great science doesn’t guarantee commercial success. Most of you know this, but this is a good check list to follow. Does your story include the following details?

• How big is the market?
• Are your projections realistic?
• What’s the revenue model or end game?
• Who are the competitors? How are you different?
• What’s the regulatory pathway?
• How will you scale?
• How long will it take to bring your product to market?
• How you plan to communicate traction and milestones​​

Ready to make your story investor ready?  Let’s talk. 

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