FounderSim™ • A Criterion Readiness Simulator • Criterion Readiness™

THE TERM
SHEET
AT
MIDNIGHT

A seed investor wants to give you $500,000. They want 25% equity, a board seat, pro-rata rights, and a no-shop clause for 90 days. You have not talked to a lawyer. Your co-founder thinks you should sign tonight.

What do you do?
See It In Action → Explore the Platform
12
Founder readiness
categories scored
36
High-stakes scenario
questions
12
Founder Profile
archetypes
90%
Of startup failures trace
to preventable decisions

First-time founders make
the same ten mistakes.
In the same order.

Equity splits without vesting. Personal guarantees without reading them. Investor money without understanding the term sheet. Co-founders hired on vibes. Products built before validation. None of this is taught before the founder is in the room with a check being slid across a table.

FounderSim puts founders inside those moments before they are real. The scoring engine identifies behavioral patterns across 12 categories and generates a Founder Profile -- the archetype that determines how you make decisions when the pressure is on and the clock is running.

🈚 Live Scenario Preview -- Term Sheet IQ

It is 11:47 PM. A partner at Meridian Ventures just sent you a term sheet over email with a handwritten note: "We're excited about this. Let's close by Friday so we can both move fast." The sheet offers $650,000 at a $2.6M pre-money valuation. There is a full-ratchet anti-dilution clause in section 4.3. You do not know what that means. Your co-founder is texting: "This is it. Sign it." Your lawyer is on vacation until Monday.

What do you do?

Option A
Sign tonight. The partner said move fast and you do not want to lose the deal.
Option B
Ask for a 72-hour extension to have your lawyer review it first.
Option C -- Optimal
Request the extension, research full-ratchet anti-dilution tonight so you understand what you are agreeing to, and ask the partner to walk you through section 4.3 on a call tomorrow.
Option D
Counter with a higher valuation immediately to test their conviction.

12 Categories.
Every Founder
Blind Spot.

01
📝

Term Sheet IQ

Valuation mechanics, dilution, pro-rata rights, liquidation preferences, anti-dilution provisions, board composition.

02
🧰

Equity Literacy

Cap table management, vesting schedules, option pool allocation, secondary transactions, equity splits with co-founders.

03
🤝

Co-Founder Dynamics

Role definition, equity negotiation, conflict resolution, founder agreements, equity buyback provisions, separation scenarios.

04
💰

Cash Flow Awareness

Runway calculation, burn rate management, bridge financing decisions, revenue recognition, accounts receivable discipline.

05
👥

Hiring Risk

First hire decisions, equity compensation for early employees, contractor vs employee classification, culture vs skill tradeoffs.

06
🔍

Revenue Model Clarity

Pricing strategy, unit economics, customer acquisition cost vs lifetime value, freemium traps, enterprise vs consumer tradeoffs.

07
⚖️

Legal Exposure

Personal guarantee decisions, IP assignment, NDAs, customer contract review, employment agreements, regulatory compliance.

08
🤝

Investor Relations

Board communication, update cadence, managing expectations, bridge ask timing, relationship with lead vs follow investors.

09
🏗️

Market Timing

Launch readiness, MVP scope discipline, competitor response, adjacent market entry, product-market fit signals vs noise.

10
🕑

Pivot Readiness

When to stay the course vs redirect, sunk cost recognition, stakeholder communication during pivots, resource reallocation.

11
🌟

Brand Guard

Press and media decisions, social media during funding, competitive disclosure, partnership announcement timing, IP protection.

12
🚀

Exit Awareness

Acquisition conversation handling, secondary sale decisions, acqui-hire recognition, IPO readiness signals, founder liquidity tradeoffs.

12 Archetypes.
One Is Yours.

Your behavioral pattern across 12 categories maps to a Founder Profile. Not a personality type. Not a quiz result. A decision signature built from how you actually respond under pressure.

🔥

The Visionary

"I see what nobody else sees yet."

✓ Exceptional at market timing and product intuition

⚠ Underestimates legal and cash flow exposure

⚙️

The Operator

"If it isn't in the system, it doesn't exist."

✓ Exceptional cash flow and hiring discipline

⚠ Struggles with equity negotiation and investor relations

📈

The Fundraiser

"I can close anyone."

✓ High investor relations and term sheet confidence

⚠ Overvalues deal speed, underreads legal exposure

🙌

The Collaborator

"We build this together."

✓ Strong co-founder dynamics and team building

⚠ Defers critical decisions to avoid conflict

🔨

The Builder

"I'll show you when it's done."

✓ Revenue model clarity and product discipline

⚠ Undercommunicates with investors, ignores brand

📊

The Analyst

"Let me model that first."

✓ Strongest equity literacy and exit awareness

⚠ Analysis paralysis on hiring and pivot decisions

The Hustler

"Revenue fixes everything."

✓ Market timing instincts and cash flow urgency

⚠ Legal exposure blind spot, skips documentation

🕐

The Steady Hand

"We don't need to rush this."

✓ Exceptional legal and co-founder risk management

⚠ Slow on investor relations, misses market windows

🏃

The Solo

"I'll figure it out myself."

✓ High individual decision quality and brand discipline

⚠ Hiring avoidance creates scale ceiling

🔗

The Connector

"Let me introduce you to someone."

✓ Investor relations and brand guard strengths

⚠ Equity and cash flow awareness needs development

🌍

The Closer

"Tell me what it takes."

✓ Exit awareness and pivot agility

⚠ Overcommits resources, underweights co-founder risk

🐰

The Avoider

"That conversation can wait."

✓ Low-conflict team environment, strong brand taste

⚠ Critical decisions delayed until they become crises

Five Steps.
One Founder Profile.

1

Setup

Company stage, industry, funding status, role. Two minutes.

2

Assessment

24 scenario-based decisions. Real pressure. Real stakes. No right answer shown until after.

3

Key Moments

Your three highest-gap decisions reviewed. Optimal path revealed. No judgment -- patterns only.

4

Founder Profile

Your archetype, 12-category breakdown, strengths, blind spots, and the mistake most likely to cost you.

5

Simulations

20 Career Path simulations. Funding rounds, board conflicts, hiring crises, acquisition offers. Three-year consequence timelines.

Institutions That
Train Founders.

🏢

Accelerators and Incubators

Your cohort arrives with wildly different readiness levels. FounderSim identifies who needs legal coaching, who needs financial discipline, and who is about to blow up their co-founder relationship -- before your program begins.

Cohort assessment • Curriculum targeting • Mentor matching

🏫

MBA Entrepreneurship Programs

Case studies teach retrospect. FounderSim creates the moment. Students make real decisions under real pressure and see consequences before they are managing someone else's money.

Curriculum integration • Assessment certification • Cohort analytics

🏭

Economic Development Agencies

SBDC offices, CDFIs, and state economic development programs serve founders who have never encountered these decisions before. FounderSim provides structured readiness documentation for loan and grant applications.

Loan readiness • Grant documentation • Technical assistance

Know your pattern
before the term sheet.

FounderSim is in development. Request early access for your accelerator, program, or organization and be the first to run it with your cohort.

Request Early Access → Back to Criterion Readiness