The Hidden Communication Problem That's Costing Biotech Founders Their Funding

Hello again 👋

I recently came across some interesting data that made me pause and think about the conversations I've been having with biotech founders lately. Some of you may have seen me share this on LinkedIn, but I thought it was worth diving deeper here because the implications are bigger than they first appear.

According to Alex Schubert from SciFounders, here are the top 7 reasons VCs pass on life science startups:

At first glance, communication problems seem like a relatively small issue. But here's what I suspect: that 8.7% is actually much bigger than it appears.

The Communication Ripple Effect

After listening to dozens of biotech pitches this year, I believe communication challenges may be contributing to many of those other "pass" reasons.

When founders struggle to clearly explain what makes their innovation different, investors start questioning the differentiator itself. When the market opportunity isn't communicated effectively, VCs or potential partners start to doubt whether the opportunity is worth pursuing.

The current funding climate makes this even more critical. With funding concentrated among fewer companies, those who can communicate their value most effectively are the ones securing investment.

What I'm Seeing in the Real World

Alex Schubert mentions seeing "long, crowded, text-heavy slides" and founders who "over-explain or use too much scientific terminology", and this is coming from a PhD scientist.

The pattern I'm noticing is that many brilliant founders are getting caught in a trap: they're so close to their science that they've lost sight of how to communicate it clearly to people who need to make investment decisions quickly.

Three things that consistently help:

1. Spend time on positioning before you create your deck Your problem-solution fit needs to be crystal clear before you worry about slide design.

2. Save technical complexity for the data room Your pitch should communicate impact, not impress with complexity.

3. Get an outside perspective on your story Founders and their teams are often too deep in the weeds to see their story clearly.

The Opportunity Hidden in the Challenge

If you DO have a compelling differentiator, a first-in-class getting clarity around your story could be the difference between a pass and a term sheet.

I've seen too many brilliant innovations struggle to get attention, not because the science isn't solid, but because the story isn't clear.

The founders who are succeeding in this environment need both: breakthrough science (e.g. first-in-class, first-in-mechanism) AND the ability to articulate their vision clearly. Even the most innovative science can struggle to get funded if investors can't quickly grasp its potential impact.

Building Strategic Visibility for the Long Term

A few weeks ago I shared insights about the "visibility paradox" many founders face—needing to be visible while avoiding formulaic approaches that make everyone sound the same. This is a common challenge I see biotech founders wrestling with as they build their presence on LinkedIn and develop their voice.

Building on these insights, I recently introduced the LinkedIn Authority Accelerator—a 4-week intensive program for life sciences leaders who are 6-12 months before their next funding round.

The program focuses on building strategic investor relationships that happen long before you need to raise money. This helps founders and CEOs ensure visibility with investors, even before they meet them or reach out.

If you have questions about the program or want to discuss how it might apply to your specific situation, book a chat here or just reply to this email – I respond to every message personally.

Warm regards,

Chris
Founder
Make Business Social
LinkedIn for Life Sciences | Strategic Communications
I help life sciences leaders cut through the noise, humanise their science, and secure the visibility and investment they and their company need to scale innovation.