Need advice - equity analyst offer at event driven long/short start-up, have to decide tomorrow

I currently have an opportunity to join a year old event driven long/short fund. The fund has a little under $200mm AUM and had a very solid year last year. They are backed by one of the big hedge fund of funds and the PM has a good track record. The offer they gave is to take a slight pay-cut but they say I would have the potential to make significantly more should they continue to perform well. My understanding is that since they are still in the seed stage, the current investor isn't actually paying a management fee but instead paying expenses directly.

My questions I guess are for people relatively familiar with the hedge fund universe.
1. Is this common for hedge funds in the seed stage to operate at bare minimum, even at close to $200mm AUM?

2. Also, how risky of a move is this considering they only have one major investor?

3. Would my transition to another, potentially larger fund or AM firm be difficult (if this fund ultimately failed)?

Quick background: I went to a semi-target in the northeast, interned at a long/short TMT fund for 2 summers during undergrad. I have been working as an investment analyst at a secondary PE fund since I graduated in May 2012. I'd like to go back into Equity Analysis at a hedge fund but I also want it to be the right opportunity.

Any help is appreciated.