Former Institutional Investor Adam J. Epstein shares why biotech’s biggest barrier isn’t science — it’s storytelling.
Biotech executives often lament that their companies struggle because “there just aren’t enough investors.” But according to Adam J. Epstein, former institutional investor, bestselling author, advisor to small-cap CEOs and closing keynote speaker at the Maryland Tech Council’s BioInnovation Conference, that view misses the point.
“The problem isn’t the lack of investors,” Epstein said. “The problem is we don’t tell a compelling enough story to cause investors to want to invest their money with us.”
The Stakes: Dollars and Cents
Epstein knows this firsthand. As a hedge fund manager, he listened to hundreds of biotech pitches. Many came from companies with world-class science, seasoned management, and similar balance sheets. Yet some consistently traded at two or three times the valuation of their peers.
“Storytelling matters,” he said bluntly. “It isn’t a touchy-feely thing you talk about at some kind of retreat. Storytelling is about dollars and cents.”
Valuation, term sheets, liquidity, analyst coverage, acquisition multiples, even employee retention — all can swing dramatically based on how effectively a company frames its narrative.
Why Brilliant CEOs Miss the Mark
One reason so many life science companies struggle with storytelling, Epstein noted, is that many CEOs come from the lab bench. “Very, very smart people assume they’re very smart at adjacent things—like running a biotech company or raising money. But storytelling is a specialized skill. And too often, companies are absolutely unintelligible to investors.”
The disconnect often leaves management teams believing their pitch went well while investors walk away convinced they’ve just uncovered why the stock is trading at a steep discount. “We need your biotech to succeed,” Epstein told the audience. “But nobody understands you.”
At the heart of the issue are two ingredients that most CEOs overlook: connection and repeatability. Connection is about making the story resonate on a human level, not just a technical one. “If there’s no connection made with me as an investor, your story stops there,” Epstein explained. But just as critical is repeatability — ensuring the story can be retold convincingly inside an investment committee. “When you’re telling your story, you’re deputizing another storyteller. If I can’t repeat it clearly to my colleagues, then I can’t advocate for you.”
This gap between being comfortable telling a story and actually delivering one that connects and repeats effectively is where many CEOs falter. As Epstein put it, “When CEOs say, ‘our storytelling is fine,’ what they really mean is, ‘I’m comfortable telling this story.’ That’s very different than having a story that resonates with investors.”
Three Pitfalls That Sink Stories
Epstein described three common mistakes that prevent biotech stories from resonating with investors:
- Avoiding the elephant in the room. Companies too often gloss over obvious issues like cash burn, illiquidity, or down rounds. “It’s like selling a house with no photos of the kitchen. Everyone knows something’s missing, and it drives down the price.”
- Overestimating the audience’s science IQ. Dense technical language alienates even sophisticated investors. “Most life science companies can’t afford to leave a single person behind when it comes to storytelling. Plain English is the difference between an A and an F.”
- Failing the repeatability test. Institutional investors decide in committees. “When you’re telling your story, you’re deputizing another storyteller,” Epstein explained. “If I can’t repeat it in the investment meeting, I can’t advocate for you.”
Hearing Your Story Through Investors’ Ears
Epstein reminded CEOs that storytelling isn’t about how comfortable they feel repeating the same deck — it’s about how investors will retell the story once they leave the room. Too often, management teams confuse their own familiarity with the story for effectiveness.
“When CEOs say, ‘our storytelling is fine,’ what they really mean is, ‘I’m comfortable telling this story,’” Epstein said. “That’s very different than having a story that resonates with investors.”
He urged executives to think about their narrative the way investors do — in short, practical terms that can survive the scrutiny of an investment committee. “Decisions are made in groups. If your story doesn’t resonate with me, if I can’t repeat it clearly to my colleagues, then I can’t advocate for you,” he explained.
This distinction is critical for biotech leaders trying to raise capital. Investors aren’t only evaluating science; they’re evaluating whether they can carry a company’s story into a committee room and defend it. The strongest CEOs, Epstein said, are the ones who craft their message with this repeatability in mind.
The Cocktail Party Test
To illustrate the problem, Epstein offered a practical tool: the Cocktail Party Test. Show your “About Us” section or website intro to three or four people outside the industry. After a few minutes, ask: What does this company do? Why is it interesting?
“In my experience, companies either get an A or an F,” Epstein said. “An A sounds like, ‘They’re developing a cheaper, less painful tattoo removal laser.’ An F sounds like, ‘Yeah… I don’t know.’”
Most companies, he added, fail. But those that pass tend to have stories that stick not just with investors, but with employees, partners, and the broader public.
A Roadmap for Leaders
Epstein closed with a simple but powerful message: storytelling is a financial strategy, not a soft skill. Companies that master it will raise capital more efficiently, attract stronger talent, and command higher valuations. Those that don’t will struggle, no matter how strong their science.
“You’d tell your company’s story much differently if you understood how investors actually perceive your company,” he said. “Get it right, and you’ll change your company’s trajectory. Get it wrong, and the best science in the world won’t save you.”
For life science executives navigating tough capital markets, Epstein’s message was both a wake-up call and a roadmap. Storytelling, he argued, isn’t a distraction from the science — it’s the most overlooked financial strategy in biotech.
