Out of the AshesThis company faced sure disaster--but came out shining.

Things were looking bright for Michael Feldman and JonathanMafrice in the early days of their start-up,Pyramat LLC, in LosAngeles. Founded in 2000, their company designs and manufactures aninnovative floor mat that folds into a chair for video gameplayers. As avid gamers and recent college students, they knewthere was a market for such an item. Says Feldman, "We wereable to isolate a need."

By February 2001, the business was humming along nicely. Feldmanand Mafrice, both 27, were manufacturing the Pyramat signature itemand selling their wares at industry trade shows. They'd alsojust received their first significant purchase order from abig-name store, Bed Bath & Beyond.