AWS Credits For Startups: What Are They And How Founders Can Get Them In 2025

Oct 9, 2025

AWS credits aren’t just perks; they’re a financial lifeline. They cover tens of thousands of dollars in costs, giving founders a crucial runway without requiring them to give up equity. The credits cover servers, databases, and AI tools without requiring equity or debt.

Key Takeaways

  • AWS Activate provides $1,000 to $300,000 in cloud credits, depending on your funding stage and partner affiliations
  • Self-funded startups qualify for Activate Founders ($1,000), while venture-backed companies access Activate Portfolio ($5,000-$300,000)
  • Credits apply automatically to over 200 AWS services, including EC2, S3, Lambda, and AI tools like Amazon Bedrock
  • Stack multiple credit sources from Y Combinator Startup School ($2,500), Stripe Atlas ($5,000), and FounderPass ($5,000)
  • The application process in 7-10 business days, with credits lasting 12-24 months from the issue date

Amazon has distributed over $7 billion in free credits to more than 330,000 startups since launching AWS Activate in 2013. These startup credits cover cloud infrastructure costs that typically drain early-stage company budgets before founders can prove their business model works. Many founders miss these opportunities entirely, though automated AI systems are now streamlining the complex application process that once required hours of manual research.

AWS credits work like prepaid gift cards for cloud services, covering everything from website hosting to AI model training. This guide covers everything you need to access AWS credits and other technology credits for startups, from understanding eligibility requirements to completing applications.

What Are AWS Credits?

AWS credits are promotional vouchers that Amazon Web Services provides to reduce or eliminate cloud computing costs for eligible companies. These credits function as prepaid currency that automatically applies to your monthly AWS bills, covering services like compute power, storage, databases, and AI tools without requiring upfront payment or equity dilution.

Why Startups Need AWS Credits and Non-Dilutive Funding

Building software products demands serious computing power from the moment you write your first line of code. Most startups watch their cloud bills climb faster than their revenue during those critical first months of testing and iteration. Traditional funding forces you to trade ownership stakes for operating capital, permanently reducing what you keep when successful exits happen.

Technology credits for startups provide infrastructure value without diluting ownership stakes or requiring debt repayment schedules. Many founders miss these opportunities entirely because they don't know the programs exist or assume eligibility requirements exclude them. Understanding which path matches your situation makes the difference between paying thousands monthly versus accessing free infrastructure.

How AWS Credits For Startups Work: What They Cover

AWS credits automatically apply to your monthly bills across more than 200 different services that Amazon offers to developers. The credits cover essential services, including EC2 servers, S3 storage, RDS databases, Lambda functions, and Amazon Bedrock for accessing AI models.

These vouchers only work for current billing cycles, so you can't use December credits to pay September bills. Amazon structures awards in tiers, where each new amount must exceed previous credits you received from any source. The credits don't cover AWS Marketplace purchases, premium support plans, or third-party software sold through Amazon's store.

AWS Activate is Amazon Web Services' program designed to help startups get cloud credits, technical support, and business resources. Within it, there are two main tracks: Activate Founders for self-funded companies and Activate Portfolio for startups backed by venture firms or accelerators. 

AWS Activate Founders: Startup Credits For Self-Funded Companies

AWS Activate Founders targets early companies building without venture backing or accelerator support behind them right now. This tier provides $1,000 in infrastructure credits plus $350 for developer support and access to technical training resources.

Eligibility requirements include:

  • The company is less than ten years old
  • Active AWS account and working website
  • No previous AWS Activate credit history
  • Fewer than ten employees
  • Under $1 million in revenue or funding raised

Processing takes between seven and ten business days once you submit all required information through the official portal. Credits appear automatically in your billing console within a few hours after approval emails arrive in your inbox.

AWS Activate Portfolio: Non-Dilutive Funding For Startups With Partners

AWS Activate Portfolio serves startups connected to recognized venture firms, accelerators, incubators, or other qualifying partner organizations. This tier offers between $5,000 and $100,000, depending on your partner and current funding stage situation. Companies building foundation AI models can access up to $300,000 specifically for compute-heavy workloads.

Key eligibility criteria:

  • Pre-Series B funding stage (pre-seed, angel, seed, or Series A)
  • Most recent funding round closed within the past twelve months
  • Organization ID from your partner program
  • Active AWS account, company website, and LinkedIn page
  • Haven't previously received $100,000 or more through AWS Activate

Partner relationships with programs like Y Combinator, Techstars, Antler, On Deck, or Plug and Play unlock these higher credit amounts.

Other Technology Credits For Startups Beyond AWS

Several legitimate platforms bundle startup credits as part of broader benefits packages:

Y Combinator Startup School

Provides $2,500 in AWS credits through a simple application open to any founder without requiring acceptance into their batch cohorts.

Stripe Atlas

Automatically includes $5,000 in credits when you incorporate your company through their formation platform.

FounderPass

Offers up to $5,000 in AWS credits behind a paid membership that also discounts tools like Notion and HubSpot.

You can sometimes stack credits from different partner channels as long as they come from separate sources. Getting $2,500 from Startup School, $5,000 from Stripe Atlas, and $5,000 from FounderPass could total $12,500.

How To Maximize Your AWS Credits and Extend Runway

Using credits strategically matters more than just getting approved for the maximum amounts available through these programs. Serverless architectures using Lambda, DynamoDB, and S3 scale to zero when nobody's using your application actively.

Smart strategies to extend your credits:

  • Use Spot Instances for 70-90% discounts on compute power
  • Set up AWS Budgets with spending alerts to prevent overages
  • Schedule dev and staging environments to shut down after hours
  • Choose serverless architectures that scale to zero when idle

Many startups waste thousands running test servers around the clock, even though nobody touches them on nights and weekends.

Apply For AWS Credits and Start Building

AWS credits preserve your capital without sacrificing equity ownership or creating debt obligations down the road. Follow these steps to access non-dilutive funding for your startup:

Step 1 - Determine Your Eligibility Track: Assess which tier matches your situation based on funding stage, partner relationships, and company age right now.

Step 2 - Gather Required Documentation: Collect your company website URL, LinkedIn page, AWS account details, and basic information, including employee count and funding history.

Step 3 - Submit Your Application: Complete the application through the official AWS Activate portal, linking your AWS account and providing accurate company details for review.

Submitting your application takes less time than a single investor meeting, but it delivers infrastructure funding that could support six months of cloud operations when you start your application now.

Web Analytics