Kaj_Sotala comments on Why startup founders have mood swings (and why they may have uses) - Less Wrong
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Maybe. On the other hand, I also recently read another article on this, which attributed things more to emotional oversensitivity to a lack of progress, which might also be a reasonable explanation:
Which isn't to say that "don't resist the slide down to despair, instead take it as an opportunity to evaluate the information" wouldn't be a good idea (indeed, that's a reaction that I'd recommend each time one feels a negative emotion), but on the other hand, "are my emotions just ill-calibrated for nonlinear progress" might be a good question to start the evaluation process with.
If lack of progress is what causes negative emotions, then it seems to me that another possible reason why startup founders might have mood swings is that they usually build one startup at a time. Therefore, if you are not making any progress, you are not making any progress at all. John Conway advises that mathematicians should work at several problems at once in order to avoid such mood swings:
Startup founders may not have such luxury, but perhaps at least in some cases it is possible to structure things in a similarly disjunctive way, where you can note the problems in a part A, but avoid despair by noticing that at least you are making progress in part B (of course, if different people are responsible for parts A and B, the problem might remain for each one of them). Averaging might make your progress look closer to linear in a certain sense.
See also: structured procrastination.