It makes little difference at 3.5 feet. I've worked in two offices like that; you might as well not have any walls at all because you can still see and talk to everyone around you. I don't see the point in even having such walls, except probably to use as structural support for the desktop surfaces. The only advantage they have is that they don't need legs like a standard fold-up table: those legs take up space under the table and you can bump your legs into them.

3.5 feet is barely higher than a desk (a normal one). That's like leaving your waiter a penny tip.

Yeah, but at least people can't see your junk on "wear a kilt to work" day...

I get that for a startup money is tight. Instead of telling employees:

"You folks really deserve a your own offices but we just can't afford it."

Instead they tell you the big lie; that they are doing it because it "increases collaboration".

If money is really that tight, you can just have people work from home. That's a lot cheaper than renting commercial office space.

Stack 2 walls on top of each other! And laid that with 2 walls you'll be double effective. Then convince everyone needs it. And extend that idea from there!

That's exactly what they are going for - desk height.