The co-founder of a $4 billion venture capital (VC) firm says the bear market has Silicon Valley somewhere in its five grief stages. “Maybe we are somewhere between anger and bargaining.”

The enterprise capital market is slowing, and a few enterprising buyers are having a tough time accepting the information.

A minimum of that is what Josh Wolff, co-founder of $4 billion Lux Capital, mentioned in an interview Monetary Occasions this week.

Wolff has a Ph.D. In computational biology from Cornell College, his friends have argued that they’re resisting management of the continuing downturn within the startup economic system, likening their response to being caught between two of the 5 levels of grief confronted by the main Swiss-American psychiatrist. Elizabeth Kubler Ross Developed within the Nineteen Sixties: denial, anger, bargaining, despair, and acceptance.

“Possibly we’re someplace between anger and bargaining,” he mentioned.

Enterprise capitalists invested about $16 billion in early-stage offers with US firms within the second quarter, based on Information from PitchBook. That is down 22% from the identical interval final yr, and represents the most important quarterly drop in enterprise capital funding since 2010 in case you do not embody the disruption brought on by the pandemic seen within the second quarter of 2020.

The worth of project-assisted exits within the US was additionally down practically 6% from a yr in the past within the first half of 2022 to only $48.8 billion, based on PitchBook knowledge. Enterprise capitalists often earn their income when the businesses they spend money on are acquired or go public – typically referred to as exits – and with International Preliminary Public Providing (IPO) volumes After dropping 46% within the first half of this yr in comparison with 2021, some enterprise capitalists are discovering it harder to “get out” than they’ve lately.

As identified by PitchBook in A July report“The IPO window really closed” within the second quarter, as VC-backed public listings hit a 13-year low.

That is vital as a result of enterprise capital has turn out to be one thing like Wall Road within the West within the trendy period, funding start-ups that go on to turn out to be giants as within the well-known examples. appleAnd the The GoogleAnd the Fb.

Not the one VC warning

Monday wasn’t the primary time Lux Capital has warned of an ongoing slowdown within the enterprise capital house, both.

Dina Shaker, accomplice within the firm, mentioned: Yahoo Finance Again in July, there was a brand new regular in early-stage investing today.

“What we have seen throughout the levels prior to now two years has been at such an unbelievably quick tempo [of growth]She mentioned. “You will note a presentation and the founder could have 10 situation sheets in 24 hours with out the type of diligence you may wish to do. It doesn’t actually occur anymore. There’s a slowdown occurring… when it comes to the tempo of doing the rounds and when it comes to capital deployment.”

Among the extra skilled buyers within the business additionally anticipated the slowdown in investing within the early levels. Invoice Gurley, a well-known enterprise capitalist presently working as a basic accomplice within the funding agency CustomaryHe predicted that early-stage funding would sluggish sharply in April, and argued that enterprising buyers wouldn’t be keen to simply accept their altering realities.

“A complete era of entrepreneurs and tech buyers constructed their total views on valuation in the course of the second half of this wonderful 13-year bull market motion. The method of “not studying” will be painful, stunning, and troubling to many. I count on denial.” He mentioned in a tweet.

Shel Mohnot, an investor in Higher Tomorrow Ventures, additionally mentioned New York times In July, his firm lowered valuations for a report variety of its start-up investments this yr as a result of altering market surroundings. “Folks do not understand how a lot has modified,” he mentioned.

“Crypto-focused agency Chapter One,” mentioned Jeff Morris Jr., managing accomplice of crypto-focused firm The Wall Road Journal Final month, this was the hardest financing surroundings he is ever seen in his profession. “It is going to be painful within the brief time period.”

This story initially appeared on Fortune.com