Lan Xuezhao of Basis Set Ventures on using data science along with human psychology to assess deals, finding LP/GP fit, founder super powers measurement, and conviction based investing.

Venture Unlocked: The playbook for venture capital managers

Today’s episode is with Lan Xuezhao, founding partner of Basis Set Ventures which has raised $301M across two funds. Lan has extensively studied AI, data science, and human psychology, and with Basis Set, she has combined those elements to bring a very unique approach to investing.

Lan’s background in corporate development at Dropbox and management at McKinsey has contributed to her data driven approach to sourcing and investing. She has a PhD in Psychology from the University of Michigan.

We chat about Lan’s unique investment philosophy, how she found GP/LP fit for Fund 1 and then Fund 2, how her firm has many shared characteristics of a portfolio company, and what makes for a founder super power.

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In this episode we discuss:

02:18 Lan’s journey into venture capital

07:40 How did she go unconventional on fund size

10:06 Lan’s learning about GP/LP fit

13:57 Constructing a different LP base in Fund 2 vs. Fund 1

17:18 The structure of the fund’s tech and investment team

21:01 Eliminating bias

22:56 Founder psychology + super power thesis

26:00 Top two key traits of the best founders

28:31 How Lan sees BSV’s place in the market today

31:25 Future of firms in her size range

34:14 Her Anti-Portfolio

36:09 Inspirations from the investment world

Mentioned in this Episode

* Basis Set Ventures

* Thesis on What Makes a Successful Founder

I’d love to know what you took away from this conversation with Lan. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.

Podcast Production support provided by Agent Bee Agency

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com