How stories drive investment decisionsHow stories drive investment decisions

Stories create meaning. They bring coherence to complexity. And in the world of capital markets—where attention is scarce, competition is strong, and most businesses are only partially understood—storytelling becomes a form of leverage.

Why storytelling matters (especially when things are complex)

The more complex or technical your business is, the more important your story becomes. Complexity exhausts attention. A clear, compelling narrative renews it.

Morgan Housel says that a company’s valuation is just a number from today multiplied by a story about tomorrow. That story—about potential, resilience, ambition, adaptability—forms a huge part of the forecasting equation for investors.

According to legendary investor Jim Grant:

“To suppose that the value of a common stock is determined purely by a corporation’s earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burnt witches, gone to war, risen to the defense of Joseph Stalin, and believed Orson Welles when he told them over radio that the Martians had landed.”

In other words: we’re humans, not computers. Even institutional investors are people first. And belief is a powerful force.

Trust is the foundation

Storytelling builds trust—that’s what makes it so central to investor relations.

On 1 September 2008, Lehman Brothers had a Tier 1 capital ratio of 11.7%. That was higher than the previous quarter, and as strong as it had ever been. Two weeks later, the firm filed for bankruptcy. 

What changed? It wasn’t the financials. As the subprime mortgage crisis emerged, fear took hold and investor belief vanished—and with it, access to funding. When the story breaks, so does the trust. And when the trust goes, the capital follows.

Of course, this can also work in your favour. When you tell a great story about where you’ve come from, you show where you’re going. When investors have trust in your past and present, they’ll have faith in your future. And that gives you leverage.

Take Mira Murati, former CTO of OpenAI. In June 2025, she launched a new company—Thinking Machines Lab—with virtually no revenue and barely a product. Yet she closed a US$2 billion capital raise at a US$10 billion valuation. That’s not just capital. That’s conviction. And conviction flows from trust and a compelling story.

She’s built trust with investors. And she’s clearly told a story that they believe in.

Why IR should be close to marketing and HR

One of the most overlooked opportunities in investor relations is alignment.

Investor relations teams should stay closely connected to both the marketing and HR functions of the company. Why? Because great investor storytelling doesn’t happen in isolation. It runs parallel to the messages a company shares with two other vital audiences: customers and employees.

Customers, employees, and investors may have different needs and perspectives—but the story they’re hearing should be cohesive and consistent. The messaging may vary, but it should always be part of a unified narrative about who the company is, what it stands for, and where it’s headed.

This alignment is both strategic and efficient. Investor relations is, at its core, a form of communications—communications to a specific (and important) audience: capital providers. That means IR can and should borrow from the content, tools, technology, and storytelling expertise of the marketing team. And HR, which shapes the employer brand, is equally important. Because engaged employees are often the best proof point of an authentic company story.

When investor messaging aligns with the way a company talks to its customers and its people, everything feels more credible. More compelling. More trustworthy.

What makes a powerful investor story

• It’s clear. Even if the business is complex, the model and mission are understandable.

• It’s consistent. The same strategic thread runs through every touchpoint.

• It’s personal. It reflects the identity, values, and ambition of the business and its leaders.

• It’s flexible. It can adapt to different audiences and situations without losing its core.

• It’s aligned. The narrative holds together employees, customers, and investors..

• It’s repeated. Investors don’t live and breathe your company every day. Just because you said something two months ago doesn’t mean it stuck. Say it again. Repetition builds familiarity, and familiarity builds confidence.

All of these contribute to the critical attribute: it's trusted. Where trust goes, capital follows.

At Sharesies, we see firsthand the benefits for businesses that have a consistent, well-crafted investor story. Not just because it helps raise capital, but because it helps shift thinking from short-term transactions to long-term relationships.

Great storytelling goes beyond the next raise or earnings call. When done well, storytelling earns companies something incredibly valuable: patient, loyal support. Investors who stick around through volatility, who back big decisions when it counts, and who become your strongest advocates in the market.

Because when investors believe in your story, they’re not just holding shares. They’re holding trust. And that’s what lasts.