Parade Ventures Shawn Merani on building LP relationships, not focusing on "hot" deals, and his mindset with founders

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.On today’s show, we have Shawn Merani, Founder and Managing Partner at seed-stage focused Parade Ventures which recently closed a $40MM+ oversubscribed Fund II. In this episode, we talk about the basics of LP relationship building, founder support during tough times, and his view on larger VC’s invested in seed.About Shawn Merani:Shawn Merani is the Founder and Managing Partner of Parade Ventures, a pre-seed & seed stage-focused venture capital firm.Previously, Shawn was a co-founder and partner at Flight Ventures, investing in early-stage software, internet, and mobile companies across a variety of sectors. Shawn’s investments include Dollar Shave Club (acquired by Unilever), Sapho (acquired by Citrix), Moveworks, Trusted Health, Clubhouse, Side, Plastiq, Jumpcloud, amongst others.As an operator, Shawn was a founding partner of Liquidnet’s Private Shares marketplace, which enabled over 750 of the world’s leading asset managers to invest in high-growth, pre-IPO companies. He grew the marketplace to $150MM+ GMV in the first two years. Prior to Liquidnet, Shawn was Senior Director of Business Development at ReachLocal. Shawn has a BA in Economics and a BS in Business Administration from the University of California at Berkeley, as well as an MBA from UCLA Anderson School of Management.In this episode we discuss:01:04 Why Shawn decided to found Parade rather than joining an established firm07:09 What are red flags and signals of alignment when looking at early-stage founders10:10 How Shawn rises above FOMO when looking at deals12:44 The lessons he learned between Fund I and Fund II and why he was able to raise so much more16:10 How Shawn partners with LPs to build trust and relationships18:24 How Shawn sourced his LPs20:44 How Shawn approaches investing in this market22:25 Is there any difference in leading rounds in 2022 vs. 202124:59 When is it right for a company to press the gas in a downturn27:40 What the next few years look like in venture capital31:20 How large, later-stage firms getting into seed will affect the market33:35 Shawn’s biggest contrarian view about investing35:11 The biggest career lesson he’s learned36:46 The biggest misconception of seed investingI’d love to know what you took away from this conversation with Shawn. 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