Notes on the AWS Activate Program

Introduction:

OneValley, the team that built Haystack, has a long history providing startups with AWS credits through the AWS Activate program. In our coworking spaces and incubators as well as through our web application Passport, we served as AWS partners and provided access to the $5,000 and $10,000 per year tiers of the credit program. Over this time, we’ve helped hundreds of startups access these credits and acquired a bit of an understanding of how the programs operate, who can qualify for these credits, and how to improve your odds of success.

Overview of the tiers of AWS Activate

There are two major tiers of this program, although the higher tier, Portfolio, has many sub-tiers.

The simplest tier to apply to is AWS Activate Founder. Currently, this maxes out at $1,000 in credits. The terms are simple, and you can apply directly:

• New to AWS Activate Credits
• Self-funded or pre-Series B (most recent funding round must be within the last 12 months, if applicable)
• Have a fully-functioning company website
• Founded in the past 10 years
• So, if you meet these criteria and are interested in using AWS, we recommend getting started on this directly. There’s no downside to applying here since you can always apply for more credits if you use these up and qualify.

If you apply, treat this as seriously as you would any other request for funding. They’re looking for credible startups and put a lot of weight into the professionalism of your company’s website. So, assess whether your website needs to be updated before you would apply.

Above AWS Activate Founder is AWS Activate Portfolio. This includes several tiers of credits that range from $5,000 to $100,000. Unlike the Founder tier, you cannot apply for this tier directly. Instead, you must go through a partner.

Partners tend to be either companies that provide products or services to startups, like Brex or Hubspot, or organizations that explicitly support startups, like accelerators, venture capital firms, or incubators.

How to find a Portfolio partner

The lowest level, the $5,000 per year level, has a relatively large number of affiliated partners.

Here is a partial list:

• Brex Rewards
• Carta Startup Stack
• HubSpot Startup Offer
• Mercury Perks
• Ramp Rewards
• Rho Startup Perk
• Stripe Atlas Perks

For most of these companies, you’ll get access to the AWS Activate $5000 tier as a perk for signing up. The company will do some light vetting of your startup to ensure it’s compatible with the program (like the $1000 tier, this usually means assessing the credibility of your website as well as assessing if you’ve received funding). Once they’re satisfied, they’ll provide you with a code you can redeem.

The $10,000 and $25,000, and $100,000 tiers usually require partnership with an organization that supports startups, such as an incubator, accelerator, or venture capital firm. Here, the exclusivity of your partner determines the credits you’ll be eligible to receive. The most prestigious accelerators (TechStars, Y Combinator, 500 Startups, etc) will offer up to the $100,000 tier.

Note that information about how many AWS credits you’ll get is often not transparent. Many of these organizations share that you’ll be eligible for “up to $100,000.” What this usually means is that they’ll assess your needs once you get in, and recommend you for a tier that makes sense. Sometimes they’ll ask for a secondary application after you’re in the program that describes your company and your cloud needs. Tou’ll want to make sure you’re putting your best foot forward. Invest time in the application form. Make sure your website is thorough and credible. After all, this is a kind of fundraising. Treat it like you would any other fundraising pitch.

Even after a Portfolio partner has vouched for you, however, there’s no guarantee that you’ll get the credits; AWS has the final say. At the levels above $5,000, AWS can get picky.

Many state or regional small business support centers also offer access to the AWS Portfolio program, albeit at the lower $5,000 and $10,000 typically. So, it’s worth checking these organizations out.

How to get the most credits
First, let’s assess what AWS is looking for when they grant AWS credits:

1. They want you to use all the credits. They don’t want to grant any credits that won’t be ultimately redeemed.
2. They want to lock fast-growing startups into their ecosystem so that the next generation of companies uses AWS.

The first piece might be counterintuitive. But it’s important to understand: if AWS grants you $10,000 in credits but you only use $8,000, they’re not happy. At OneValley, we’ve heard this complaint from AWS before. So, they’re going to want to be fairly certain that you need the credits you’re asking for.

So, your portfolio partner may ask you for information about what you spend on cloud every month. They may take into consideration if you’re an AI company or building something that requires a lot of compute. If you’re asking to get a lot of credits, be prepared to answer these questions credibly.

Second, AWS wants to provide credits to companies that they believe will grow larger. From their perspective, they’re encouraging the next generation of huge companies to start building with AWS while they’re still small. This is why they provide greater discounts to the most prestigious venture capital firms and accelerators; these are the partners who have a track record of providing access to fast-growing companies.

If you get into a top-tier accelerator like Y Combinator or receive funding from a prestigious venture capital firm like Sequoia or Greylock, you’ll probably get access to a high tier of AWS credit without any additional pitching; they’re already vouching for you.

If you’re given the option of applying for the $5,000, $10,000, $25,000, or $100,000 tier, the temptation may be to simply apply for the highest possible tier. In reality, however, you’ll probably just have your application rejected, and potentially have to start over again. Choose the tier you think you’ll fully use. You can always apply for the next tier up once you’ve exhausted those credits.