I think your instinct is correct.<p>If you&#x27;re in SF paying market rate, with say a dozen employees, presumably your expenses BEFORE office space are in the range of 200K&#x2F;mo+.<p>Unless they&#x27;re gold plated, your &quot;lavish&quot; offices would represent &lt;~10% of expenses.<p>Space and perks itself doesn&#x27;t drive failure I don&#x27;t think, but they can point to aspects that do.<p>There are plenty of disciplined companies that appear to be &quot;lavish&quot; with space and perks. There are plenty of highly profitable tech startups that really scrimp on space and perks. It&#x27;s tough to generalize.