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Morale is tremendously important to a startup—so important that morale alone is almost enough to determine success. Startups are often described as emotional roller-coasters. One minute you’re going to take over the world, and the next you’re doomed. The problem with feeling you’re doomed is not just that it makes you unhappy, but that it makes you stop working. So the downhills of the roller-coaster are more of a self fulfilling prophecy than the uphills. If feeling you’re going to succeed makes you work harder, that probably improves your chances of succeeding, but if feeling you’re going to fail makes you stop working, that practically guarantees you’ll fail.