Back to all FAQs

What is AWS Activate and can my startup use it?

Summary

AWS Activate is AWS's credit program for startups. It provides free AWS service credits to help early-stage companies get their products running on AWS without paying full infrastructure costs out of pocket. Activate is self-serve. You apply directly with AWS, no partner required. Credits are tiered based on your startup's stage and backing. Self-funded and bootstrapped companies can apply directly for the entry tier. Companies backed by a qualifying venture capital firm, accelerator, or incubator can access significantly more through the Portfolio tier. AI startups that have exhausted Portfolio credits may qualify for an invite-only track with higher availability. Activate covers AWS service costs only. It does not cover consulting, implementation labor, or partner fees. A partner can be involved from the start while Activate credits are running which means the credits reduce your AWS bill, and partner funding programs can cover the implementation work alongside them. The two are designed to complement each other, not to run in sequence.

AWS Activate is the starting point most startups reach first when they want to build on AWS. The program exists because AWS wants early-stage companies running on its infrastructure, and credits reduce the barrier to doing that.

Credits apply against real AWS service costs, including compute, storage, model inference, database, etc., and they can meaningfully reduce early runway burn while you validate a product. But understanding what Activate is and is not will save you from building a budget around an assumption it cannot support.

Who qualifies

Activate is designed for early-stage companies. The general eligibility requirements are:

  • Incorporated company, less than 10 years old
  • Pre-Series B
  • An active AWS account on a paid plan
  • Not previously enrolled in Activate, or applying for more than previously received

Beyond those basics, the credit tier you can access depends on your startup's backing and stage.

Credit tiers

Activate Founders is the entry point for bootstrapped and self-funded companies. You apply directly through the AWS Activate portal with no sponsor required. Credits are modest at this tier and suited to early testing and lightweight development, not production workloads.

Activate Portfolio is for pre-Series B startups with an Org ID from a qualifying AWS Activate provider, i.e. a VC firm, accelerator, incubator, or startup program with a formal AWS relationship. Credit availability at this tier is substantially higher than Founders. The exact amount depends on your sponsor and stage. Check the current AWS Activate page for figures, as AWS updates them periodically.

AWS Credits for AI Startups is an invite-only track for companies that have exhausted Portfolio credits and are ready to scale AI workloads. Access is through your AWS Account Manager. If your product runs on Amazon Bedrock or SageMaker and you are post-Portfolio, this is worth asking about directly.

What credits cover

Activate credits apply against AWS service charges: compute instances, storage, model inference calls, database usage, networking, and similar infrastructure costs. They reduce your AWS bill directly.

Credits do not cover:

  • Consulting or implementation fees
  • Partner labor on your project
  • Software licenses
  • Any costs outside the AWS bill

This distinction matters when you are planning a project that involves both AWS infrastructure and a partner to help you build it. The credits handle the cloud costs. Everything else is a separate conversation.

Activate and partner funding together

Activate and partner funding programs cover different costs on the same project at the same time. Activate reduces your AWS bill. Partner programs like PoC funding and Build funding can cover the implementation labor your partner brings. A startup can hold Activate credits and run a partner-facilitated engagement simultaneously.

You do not need to exhaust Activate credits before bringing in a partner, and you do not need to choose between the two programs.

Tech 42 is an AWS Advanced Tier Services Partner with access to PoC, Build, and Migration programs. We can help you structure an engagement that makes the best use of whatever incentives you qualify for.

The fastest way to know what you qualify for

We frequently can get to the bottom of funding availability on a short intro call. For more complex situations, Tech 42 runs short funding assessments, covered by AWS, that map your specific project to the programs it qualifies for. If you are an Activate-eligible startup building something on AWS, a short conversation will tell you whether Activate alone covers your needs or whether additional funding is on the table.