Number of new Irish startup companies decimated by Covid-19 outbreak

The largest declines in new registrations were in the sectors of leasing, construction – which saw a near 50% year-on-year drop – and the motor industry.

Conversely, there was a 22% increase in financial intermediary companies springing up.

"As we continue to progress on our roadmap to recovery, it is vital that industry and Government work together to fully understand the implications of the pandemic on the start-up community and to ensure that necessary supports are put in place to help start-ups to rebuild and to adapt to the evolving situation," said Vision-net managing director Christine Cullen.

"Even in the best of times, the survival of a start-up isn’t guaranteed and the current climate is certainly not one that fosters growth and development. To help combat this, we must ensure that we remain future-focused and develop a robust recovery strategy for the start-up community that encourages growth and innovation," she said.

Meanwhile, new figures from Bank of Ireland show a Covid-driven increase in the number of people saving money regularly – up from 46% in the final quarter of 2019 to 51% in the second quarter of this year. Less options for spending, during the Covid lockdown, played a part in the rise.

"Attitudes to savings have strengthened as might be expected during a period of economic strain of this kind – less spending saw an increase in cash balances for some and those who could afford to put cash aside. With greater uncertainty, the precautionary reason for saving has also come to the fore, and we’ve seen an increase in those who think it’s a good time to save in the short-term,” said Kevin Quinn of Bank of Ireland Investment Markets.