San Fran Sim

San Fran Sim: Master the Startup Journey in the AI Summer Market

In the high-stakes world of technology, the journey from a humble garage to a global powerhouse is fraught with challenges, technical debt, and the relentless pursuit of Monthly Recurring Revenue (MRR). San Fran Sim is a comprehensive startup simulator designed to put you in the shoes of a founder during the legendary "AI Summer." Created by Daniel Kempe, this simulation provides a realistic, data-driven look at what it takes to build, scale, and sustain a tech company from day one.

What's San Fran Sim?

San Fran Sim is an advanced startup simulation environment that focuses on the granular details of company building. The simulation begins in "The Garage," the iconic starting point for many Silicon Valley giants. As a founder in San Fran Sim, you are tasked with managing every aspect of your nascent enterprise, from initial incorporation as a Delaware C-corp to reaching critical milestones like your first 100 signups.

Set against the backdrop of the "AI Summer" market, San Fran Sim challenges players to balance their financial runway with product development. With a starting capital of $25,000 and a lean monthly burn rate of $240, the simulation emphasizes the importance of resource management and strategic decision-making. In San Fran Sim, the ultimate goal is to transform your initial $0 MRR into a thriving business, all while navigating the "Rollercoaster"—the visual representation of your MRR chart.

Features of the San Fran Sim Experience

San Fran Sim is packed with features that reflect the complexities of the modern startup ecosystem. Below are the core components that make this simulation a must-play for aspiring entrepreneurs.

Financial and Operational Tracking

At the heart of San Fran Sim is a robust dashboard that tracks your company's vital signs in real-time:

• Cash Management: Start with $25k in seed funding.
• Runway Analysis: Monitor your 104.2 months of runway to ensure your company survives the early stages.
• Burn Rate: Keep track of your $240/mo burn rate to optimize your spending.
• MRR Monitoring: Watch your Monthly Recurring Revenue evolve from $0 as you acquire paying users.

The Whiteboard and Development System

Product development in San Fran Sim is managed through "The Whiteboard," a strategic interface where features are prioritized based on their complexity and projected impact. Features are categorized by size:

• S (10 SP): Small tasks for quick wins.
• M (25 SP): Medium features requiring more focus.
• L (60 SP): Large initiatives that shift the product needle.
• XL (150 SP): Extra-large projects that define your infrastructure.

Team Output and Story Points (SP)

Progress in San Fran Sim is measured in Story Points (SP). Your team's output determines how quickly you can ship features. At the start, the founder provides 0.5 SP/day, but as you expand the team, your total SP/day increases, allowing for faster development of the MVP (Minimum Viable Product).

Technical Debt and Refactor Sprints

Building too fast can lead to technical debt. San Fran Sim includes a Refactor Sprint mechanic where you can choose to address debt. A single Refactor sprint can reduce debt by 25 points and increase quality by 5 points. However, players must be careful: cancelling three or more features in a quarter leads to Pivot Sickness, a condition that can stall your progress.

How to Use San Fran Sim

Getting started with San Fran Sim is a straightforward process that mimics the real-world steps of launching a startup.

1. Name Your Company: Every great journey begins with an identity. Enter your company name in the simulation to begin.
2. Incorporate: Select the option to incorporate as a Delaware C-corp. This is the standard for startups looking to raise venture capital.
3. Define Your MVP: Navigate to the Wegrind Desk and identify the first 3 MVP features you need to ship to reach your first 100 signups.
4. Manage the Whiteboard: Assign tasks across categories such as Growth, Retention, Monetization, Infra, Delight, and Onboarding.
5. Monitor Team Output: Keep an eye on your Team Output (currently 0.5 SP/day) and decide when it is time to hire engineers via the Hiring tab.
6. Scale and Raise: Once you have gained traction, use the Raise and Growth modules to take your company to the next level.

Use Case: Navigating the AI Summer

San Fran Sim is particularly effective for testing different startup strategies. For instance, a user might use the simulation to see how long they can survive on a $25k budget while focusing entirely on Infrastructure (Infra) versus Growth.

Another use case involves managing "The Rollercoaster." Because the MRR chart in San Fran Sim is a rollercoaster, players can learn the emotional and financial discipline required to handle the inevitable dips in revenue. By utilizing the Roadmap and Team functions, players can simulate the transition from a solo founder in a garage to a fully staffed office in San Francisco.

FAQ

Q: What is Pivot Sickness in San Fran Sim? A: Pivot Sickness occurs when a founder cancels three or more features within a single quarter. It represents the loss of morale and momentum that happens when a company changes direction too frequently.

Q: How do I increase my Story Points (SP) per day? A: Your SP output is tied to your team. While a founder provides 0.5 SP/day, hiring engineers through the "Hiring" menu will increase your daily output, allowing you to tackle L and XL tasks on the Whiteboard.

Q: What are the starting conditions in San Fran Sim? A: Every player starts on Day 1 in "The Garage" with $25,000 cash, a $240 monthly burn, and a goal to ship 3 MVP features and reach 100 signups.

Q: Who created San Fran Sim? A: The simulation was created by Daniel Kempe as a way to simulate the San Francisco startup experience.

Q: What does the "Refactor" action do? A: Choosing to refactor allows the team to spend time cleaning up code. This results in -25 technical debt and +5 quality, though it occupies a slot in your feature queue.

By balancing the various demands of San Fran Sim, you can gain valuable insights into the mechanics of the startup world without the real-world financial risk. Whether you are focusing on Retention or Monetization, the simulation provides a realistic playground for the next generation of founders.