Archive for January 5th, 2018


As the Gerbsman Partners team entered the refurbished warehouse of the technology/dot com company, we were in awe at the luxury of this start-up.   As we were to find  out, the  $ 3.4 million cost to build out the office was but a pittance of the $ 80 million already invested.  

The team marveled at the new and colorful open cubicles and glass offices; we observed that everyone had a Herman Miller chair ( 220 chairs at a discounted cost of $ 650 per chair = $ 143k ); we were brought into the upscale kitchen for freshly brewed gourmet coffee;  we observed the Miele refrigerator, dish washer, microwave and disposal unit;  we were offered 6 different kinds of fruit, French Pastry and Evian water;  we sat overlooking a $10,000 pool table and game room.  

When the team inquired about the food, fruit and gourmet trimmings, we were told the budget was about  $ 8-10k per month.  Obviously something was wrong with this picture, however the management and Board of Directors were oblivious to these luxury cost issues.

Well, what can I say – “ It was Dot Com/Dot Bomb time in Silicon Valley”.   It was early in 2001 and little did the team or I know that this was just the beginning of one of many similar business models that were not valid and insolvency was around the corner.




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