Navigating Threshold Moments with Lisa Xu of Threshold Ventures
We’re hosting a Vertical AI Summit - May 22 - more info here
In our latest investor spotlight, we sat down with Lisa Xu, Partner at Threshold Ventures, to unpack her journey from NYC startup operator to early-stage investor—and the philosophy that drives her investment decisions today. Lisa began her career in New York’s startup trenches, with product leadership roles at Peloton and Handy and investing in early-stage companies at FirstMark Capital.
Investing at the Inflection Point
At Threshold Ventures, Lisa and her team are laser-focused on what they call “threshold moments”—the critical inflection points where market dynamics, team strength, and enabling technology converge to unlock nonlinear growth. Their concentrated portfolio strategy means each partner makes just 2-3 Series A/B investments a year, allowing for deep engagement with founders.
Why Founder-Investor Fit Matters
Founder-Investor fit is critical when when choosing a VC partner. “We don’t try to force-fit founders into a framework,” she noted. “We’re investment-partner first—and that means being the go-to person through the messy, high-stakes early stages of company building.”
The Rise of Vertical AI
One area Lisa is particularly excited about? Vertical AI. New AI-native platforms are flipping the script on traditional software by delivering entire functions rather than tools. Threshold has invested in companies like Numa (auto dealerships), VideaHealth (dentistry), and Motion (AI-driven data platforms) are prime examples of how AI is reshaping the value proposition for vertical SaaS—and blowing open traditional notions of total addressable market (TAM).
Moats Through Distribution and Data
What gives these companies an edge, isn’t just the tech—it’s distribution and defensibility. Strategic partnerships (like VideaHealth’s integration with Henry Schein) and proprietary data layers are becoming the modern moats.
Advice for Founders at the Threshold
For founders building at the intersection of AI and industry, Lisa offered this advice: “Understand how decisions get made at your investor’s fund. In those critical moments, you want a partner who’s aligned, accessible, and equipped to support you through the next threshold.”
Upcoming Lynx Collective Events
April 22 - Connect & Capitalize: Fintech Week Founder and Investor Mixer
April 30 - Investors Lunch: The Hidden Key to Thriving Co-Founder Relationships
May 22 - NY Vertical AI Summit
June 12 - Inside: Union Square Ventures