According to PwC’s analysis, the startup failure rate dropped to its lowest level in over a decade, accounting for 46% of total UK company insolvencies in 2024, down from an average of 60% over the past ten years. While startups have shown resilience, non-startup insolvencies remain high, particularly in sectors like retail and hospitality due to fixed costs. Startups have adapted through flexible structures and technology, but face challenges from reduced venture capital, market changes, and upcoming tax implications. Despite a favorable environment for UK startups, concerns about cash conservation and long-term growth persist, with a risk of ‘zombie’ companies emerging.