AWS Credits for Startups Explained: Everything You Need to Know

Nitin Yadav
August 4, 2025
Knowledge

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AWS credits help startups build and scale affordably. Learn how to apply, use, and maximize AWS Activate benefits in 2025 to launch and grow with zero cloud costs.

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AWS, AWS Activate 2025, AWS Azure, AWS Azure GCP Security, AWS Best Practices, AWS Cloud, AWS Credits, AWS Migration Services, Cloud Security, DevOps

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In the fast-paced world of startups, managing cloud infrastructure costs while scaling efficiently can be a major challenge. This is where AWS credits come in—a financial resource offered by Amazon Web Services to help startups build and grow their businesses without worrying about cloud spend in the early stages. But what are these credits exactly? How do you qualify? And how can you make the most of them?

This comprehensive guide breaks down everything you need to know about AWS credits for startups—from eligibility criteria to application tips, usage best practices, and alternative programs.

What is AWS Migration Services?

AWS credits are monetary credits that startups can apply to their AWS bill to offset the cost of using Amazon’s cloud infrastructure and services. These credits can range from $1,000 to $100,000 depending on the program and eligibility.

What Can AWS Credits Be Used For?

Amazon EC2 (Elastic Compute Cloud)
Amazon S3 (Simple Storage Service)
Amazon RDS (Relational Database Service)
AWS Lambda
CloudFront
AI/ML services (like SageMaker)
And many more core services under the AWS umbrella

Key Limitations

Credits typically expire in 1 year from the date of issue
Not applicable for AWS Marketplace products
Cannot be redeemed for AWS Support unless part of the plan

Why AWS Supports Startups

Amazon has long recognized the potential in helping startups grow using its infrastructure. Here’s why:

Startups are future enterprise customers
Early product development often relies on cloud-native technologies
AWS ensures vendor lock-in through early engagement
Supporting startups helps create a vibrant ecosystem of tools and solutions

Success Stories

Airbnb, Lyft, and Slack all used AWS in their formative years
Thousands of early-stage startups have leveraged AWS credits to deploy MVPs and scale

AWS Activate: The Core Credit Program

The AWS Activate program is the primary vehicle through which startups can receive AWS credits, technical support, training, and exclusive partner offers.

AWS Activate Offers Two Tiers:

1. Activate Founders

For bootstrapped or self-funded startups not yet affiliated with investors or accelerators
Benefits:
- Up to $1,000 in AWS credits
- 2 months of AWS Business Support
- AWS Activate Console with resources, templates, and exclusive deals

2. Activate Portfolio

For startups backed by select accelerators, incubators, VCs, or other startup-enabling organizations
Benefits:
- Up to $100,000 in AWS credits
- 1 year of AWS Business Support
- Greater access to architecture reviews and funding resources

Eligibility Criteria

Must be new to AWS (or under usage thresholds)
Company must be privately held and under 10 years old
Portfolio tier requires referral code from approved partner

How to Apply for AWS Credits

Here’s a step-by-step guide for both Activate Founders and Activate Portfolio applicants:

1. Visit the AWS Activate Program Page

Go to https://aws.amazon.com/activate/

2. Choose Your Tier (Founders or Portfolio)

Ensure you meet the requirements for the tier you’re applying for.

3. Fill Out the Application Form

Business email address
Company information (website, location, employee count)
Brief description of product/service
If Portfolio, enter referral code from partner

4. Submit and Wait

Most applications are reviewed within 7–10 business days

Tips to Maximize AWS Credits

Once approved, it’s essential to use AWS credits strategically. Here’s how:

1. Start with MVP Deployment

Build and deploy your Minimum Viable Product (MVP) on low-cost services like EC2 t2.micro, Lambda, or Lightsail.

2. Use Cost Optimization Tools

AWS Budgets: Set alerts on usage
Cost Explorer: Visualize and forecast usage
Compute Optimizer: Right-size your workloads

3. Leverage Serverless Architectures

Use AWS Lambda, DynamoDB, and S3 to reduce infrastructure costs while remaining scalable.

4. Reserve Instances (If Confident)

Once predictable workloads are established, consider using Reserved Instances or Savings Plans for discounted pricing.

5. Avoid High-Cost Services Initially

Avoid premature use of premium services like Redshift or Managed Blockchain unless essential to your core product.

Alternative Cloud Credit Programs

While AWS is the industry leader, other cloud providers also offer generous startup credits:

Google Cloud Platform (GCP)

Up to $100,000 credits via GCP for Startups
Strong AI/ML offerings and BigQuery access

Microsoft Azure for Startups

Up to $150,000 credits
Access to GitHub Enterprise, Visual Studio, and Azure cloud services

IBM Cloud, Oracle Cloud, and Alibaba Cloud

Each offers smaller-scale programs for startups

Multi-Cloud Strategy

Use AWS for compute/storage and GCP for analytics
Avoid vendor lock-in
Flexibility in pricing and technical capabilities

How AWS Credits Help Across Startup Phases

Idea Phase

Free credits allow experimentation and MVP development
Avoid upfront infrastructure costs

Early Growth

Credits support scale without financial pressure
Cost-efficient hosting, monitoring, and analytics

Product-Market Fit

Leverage credits for scaling workloads, CI/CD pipelines
Use AI/ML tools for customer insights or personalization

Conclusion

AWS credits are a game-changer for startups, offering infrastructure freedom without upfront investment. However, to unlock their full value:

Apply early with the right tier (Founders or Portfolio)
Plan your architecture for scalability and cost-efficiency
Monitor and optimize usage consistently

The credits won’t last forever—but the momentum they provide might be all your startup needs to go from MVP to millions.

Ready to grow? Talk to a certified AWS Partner to plan your infrastructure roadmap.

Frequently asked questions

What are AWS credits for startups?

AWS credits for startups are promotional credits offered by Amazon Web Services under its AWS Activate program. These credits help early-stage startups build and scale their cloud infrastructure without upfront cost. Credits can be applied to AWS services such as EC2, S3, Lambda, RDS, and more.

How do I apply for AWS Activate Founders or Portfolio?

To apply for AWS Activate Founders, go to the AWS Activate page and sign up with your startup details no VC backing is required. For AWS Activate Portfolio, you must be affiliated with a recognized accelerator, incubator, or venture capital firm and enter your organization’s unique Org ID during signup.

Who is eligible for AWS startup credits?

Startups must be less than 10 years old, not publicly traded, and must not have previously received Activate credits. Activate Founders is available to self-funded startups, while Activate Portfolio is for startups backed by select accelerators or investors.

How much AWS credit can a startup receive?

AWS Activate Founders provides up to $1,000 in AWS credits. AWS Activate Portfolio offers between $5,000 and $100,000 in credits depending on the startup’s stage and program tier. Some partners also offer additional technical support credits.

Do AWS credits expire?

Yes. Most AWS Activate credits are valid for 12 months from the date of issue. It’s essential to monitor the credit expiration date in your AWS billing dashboard to avoid surprise charges.

Can I use AWS credits for Lambda and EC2?

Absolutely. AWS credits can be used for a wide range of services including AWS Lambda (serverless compute) and Amazon EC2 (virtual servers). They also apply to other services like S3 (storage), RDS (databases), and CloudWatch (monitoring).

What’s the difference between Activate Founders and Portfolio?

Activate Founders is for bootstrapped or self-funded startups with no institutional backing. It provides $1,000 in AWS credits. Activate Portfolio is for startups affiliated with VCs, accelerators, or incubators and offers higher credits (up to $100,000) and additional support.

Are AWS credits renewable?

No, AWS credits are generally not renewable. However, startups may apply for additional credits through new programs, renewals with different partners, or business milestones if eligible.

What happens when AWS credits are used up?

Once AWS credits are fully consumed or expire, your AWS account will be charged at standard on-demand rates for all services used. You can monitor usage in the Billing & Cost Management Dashboard.

What are the best practices to optimize AWS credit usage?

To maximize your AWS credits, consider:
Using cost-optimized instances (like Spot or Graviton)
Enabling auto-scaling
Leveraging AWS Free Tier services
Monitoring usage with AWS Budgets
Applying cloud architecture best practices to avoid over-provisioning

Tagged AWS, AWS Activate 2025, AWS Azure, AWS Azure GCP Security, AWS Best Practices, AWS Cloud, AWS Credits, AWS Migration Services, Cloud Security, DevOps