As AI capabilities evolve at a rapid pace, it is leaving in its wake many startups in the SaaS and AI space that are either dead or zombies. Several companies are staying afloat, but are unlikely to give investors the bumper returns they envisaged when backing these ventures.According to data from Tracxn, about 16 AI native startups had shut down in 2025, up from 6 in 2024. In the case of SaaS, close to 680 startups shut down in 2024 and 123 in