Hi Shana, I'm going to move your question over to the "General VC Questions" category.

LPs are most familiar with the 2/20 model. If you deviate from this, you will struggle to raise money, especially as an emerging manager. There are many areas to innovate as an emerging manager. Innovating on the standard fee model is not one of them because it will create a lot friction with LPs. 

Thanks Mike. I was referring to a section in the article titled Venture Fund Economics that discusses how 2/20 model alterations are negotiated by fund managers and investors to "better align with specific strategies, risk and market conditions" including budget-based management fees, preferred return, deal-by-deal carry etc. Any insight you can provide on common alterations like these seen in healthcare funds would be greatly appreciated. 

You should avoid budget-based management fees, preferred return, deal-by-deal carry etc. All this stuff brings in un-necessary and excessive complexity and cost and are not beneficial, especially for emerging managers. Our recommendation is to do a clean  2&20 fund with no special terms.