Stage 1 Ventures and their novel funding early stage capital approach was covered in a PE Equity Manager article. In this article, Baum is quoted several times:

..the Stage 1 model better reflects and adapts changes in the market by "dynamically matching" a financial vehicle to the set of opportunities it faces. For an industry that thinks it’s all about taking risk, the GP never takes and risk for the LPs. On the profits made, Stage 1 will receive a slightly higher carried interest than the VC industry standard… in return for taking 67 percent less management fees..

The complete article in PDF format can be downloaded here.