SPIN-OUT SIMULATION PLAYBOOK

FEBRUARY 2025

A step-by-step guide

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Purpose

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This guide provides step-by-step instructions on how to facilitate and run the spin-out simulation. The goal is to help participants understand the challenges and competing interests in spinning out a company from a university while fostering negotiation skills and empathy among stakeholders.

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GAME SETUP

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Participants

Maximum of nine players, with up to three per team

Preparing participants

Pre-Game Briefing:

• Send participants game rules, player archetypes, and a commercial opportunity overview.
• Players should review their archetypes and prepare to role-play their assigned roles.

Recruit players with firsthand experience in their assigned roles for a more realistic simulation.

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Player Recruitment

Technology Transfer Office

Venture Capitalists

Researchers

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Gamemaster

The Gamemaster (GM) facilitates gameplay and ensures realistic negotiation dynamics.

• Guide gameplay flow and prompt players when necessary.
• Intervene when negotiations become unrealistic or repetitive.
• Direct whose turn it is and encourage interactions that reflect real-world deal-making.
• Ensure players stay engaged without getting lost in minor details.

• The GM may pause gameplay or remove a player for X rounds if their real-world role would require external approval (e.g., Investment Committee sign-off, university board approval).
• The GM can redirect negotiations when teams are stuck in a loop.

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Responsibilities

Handling Deadlocks

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Process Navigators

Process Navigators are an extension of the Gamemaster, having played the game before and understanding its rules and complexities.

They sit with each team but do not steer gameplay.

Their role is to prompt players to:

• Explain jargon in simple terms.
• Identify when they are stuck in a loop and help refocus discussions.
• Provide insights on industry-specific nuances that may not be immediately clear to all players.

They act as guides, not decision-makers, ensuring gameplay remains engaging and educational.

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Responsibilities

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Final Team Structure

This is what it should look like

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Gamemaster

Process Navigator

Player

Player

Player

Player

Player

Player

Process Navigator

Process Navigator

Player

Player

Player

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RUNNING THE GAME

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Running the Game

Keeping track of negotiations

The GM and Process Navigators maintain an updated cap table, tracking:

• Equity splits and changes over time.
• Value contributions of each player.
• Justifications for each party's final stake.

Participants should document key deal points to ensure negotiation continuity.

Total Duration: 3 hours (simulating 12 weeks of an accelerator program).

Time Progression: Each 15-minute round = 1 simulated week.

Turn-based Gameplay

Types of Turns:

• Action Turn: A player proposes a move (e.g., investment terms, licensing agreements).
• Clarification Turn: A player requests information to make an informed decision.

Negotiation Dynamics:

• The Researchers always take the first move.
• Teams may negotiate one-on-one or in a group setting.
• The GM can introduce real-world delays (e.g., waiting on term sheet approvals).

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Game Structure

Pre-round

Setting the Stage: Teams align on strategy.

Negotiation

Players propose and counter-propose deals.

End game and reflections

Debrief and assess takeaways.

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Pre-Round Principles

Each team discusses their decision-making frameworks based on their university policies or fund mandates.

Teams align on an initial strategy for how they will approach the negotiations.

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REFLECTION AND OBSERVATION

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Reflection & Observations

• Observers engage only at specific rounds (6 and 12) to prevent distractions.
• They provide structured insights on negotiation trends and player dynamics.

Participants summarize agreements and equity distributions.

Discussion Questions:

• What were the biggest negotiation challenges?
• How did real-world biases shape decision-making?
• What strategies worked best in securing favorable terms?

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Observer Role

Endgame & Debrief

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VICTORY CONDITION

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Victory Condition

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The game ends when all three teams agree on spin-out terms.

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COMMON PITFALLS & HOW TO AVOID THEM

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Common Pitfalls & How to Avoid Them

GM should redirect focus to critical deal points.

Ensure all players have an opportunity to voice concerns.

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Encourage exposing and discussing these biases openly.

GM should prompt players to align with real-world expectations.

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Cyclical Negotiations on Minor Issues

Imbalance

in Power

Dynamics

Players

Bringing in

External Biases

Lack of

Realism in

Offers

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FINAL THOUGHTS

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Final Thoughts

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The spin-out simulation is an interactive, evolving exercise.

Each session may take a different path based on player decisions.

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The key to a successful game is fluid facilitation by the Gamemaster and active engagement from players.

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THANK YOU

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Game Collateral

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