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I can relate to this as a developer. At my agency, the technical team is often brought in later-on in designing a solution, and I find myself not having any base understanding of the project--like why and for who is this being developed. As a result, it's hard to have motivation to work on a project when you lack the why's of what you're doing.
To un-bury the lede, his answer is "clarity."
In my experience, lack of clarity is caused by the executive team not making their true goals known to the whole company. A classic example is prioritizing seemingly arbitrary products/features in hope of pleasing a future partner or acquirer - employees won't automatically know why these obscure projects suddenly became important.
If the startup needs clarity to survive, then the exec level must have transparency to reach clarity.

If you do not have transparency; then clarity (about your true goals) is impossible, because execs with lack-of-transparency typically have other (more selfish/shady) goals that they are really requiring people to support through their work.

Typically, their (the execs) actual greed.

I have oft stated in the past that another positive outcome from transparency is also accountability.

Everything seems very clear to a founder because the founder defines what clarity means! Clarity comes from authority and agency. I bet that engineer is back in the dumps within a day or week.
I agree. Happened to me today in a matter of hours. Something I'd been working on for the past couple days (mundane task) just got "nuked" with a new requirement list which will now wipe our data in the database that I just finished connecting to our code. This big company is so inefficient it's maddening, I don't believe my group will ever release a product. /rant (sorry)
I know the feeling. My management is also so inefficient it is maddening. But you can console yourself with the thought that at least you're paid. It isn't under your control what the higher-ups do so don't sweat it.

Be the best in your group as much as possible. If worse comes to worse, at least they will keep you if there are layoffs down the road, or your resume will look better to someone else sometime down the road. You did the work they paid for so if they want to trash it... can't cure stupid.

Unfortunately for me, I work for myself. My management is my own addled brain! I was up all last night working. Two hours sleep today.

I don't believe my group will ever release a product. (sigh) :-)

Yup I'm keeping my eyes peeled. I know wow is me I get paid to mostly just waste company time learn on my own and do a few "work" things time to time.

Oh I saw this joke/comment that might cheer you up that was on reddit. It was an askReddit thread about inappropriate relationships in the work place. "I am self employed, so the sexual abuse is rampant in the office."

Yes. Constantly wasted effort and the lack of any real, defined "mission" are beyond demotivating. They're glimpses into the horrifying reality that you're probably just a cog in a huge jobs programs. The fact that many of its participants seem okay with that reality makes it even worse.
Yup definitely feeling cog in the machine and the reality of others that it's okay makes it seem crazy the world functions.
One of the top complaints from employees at startups I've worked at has been the constant shuffling of priorities without clear justification. It manifests in this way typically: founder tells company on a Monday that the priority is x; then in middle of the week says priority is y while being oblivious to the fact that y directly contradicts x. This leads to the barrage of water cooler gossip wondering if the founder knows what the heck he is doing.

The sad thing is that usually founders have good reasons to constantly reassess priorities especially in early stages. But to change priorities without a clear transition about the why turns your passionate star employees into confused bots wondering why they are working for you.

A problem well defined is a problem half-solved - a great fortune cookie quote I recently came across and has been resonating with me alot lately. Its tough to move forward without having a clear vision of what needs to be done.