Amazon Web Services Offers Support to Early-Stage Startups
BY PYMNTS | AUGUST 9, 2023
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Amazon Web Services (AWS) says it wants to assist early-stage startups amid a tight funding environment.
The company on Wednesday (Aug. 9) introduced AWS Build, a program that offers business and technical guidance — plus some funding — to early-stage companies, helping them use AWS’ tech stack to launch their products.
“Startups will also learn technical fundamentals to incorporate the most advanced cloud technologies into their applications, from analytics and serverless, to artificial intelligence and machine learning,” AWS said in a news release.
In addition, founders will learn to make strategic decisions about product development, monetizing their ideas, and where to find and when to use beta customers. Startups chosen for the program will also get up to $2,000 in AWS credits to help them build their products and services in the cloud.
The launch of AWS Build comes weeks after a number of reports about startups struggling to find funding. It’s a situation that has led many startups to seek buyers in order to stay afloat.
As PYMNTS has reported, American investors backed 3,011 startup deals during the second quarter of this year, which is a third fewer than the same period in 2022.
Venture capital (VC) firms also reduced their spending, with the total amount just shy of $40 billion, almost half of what was spent last year. The biggest drop in funding occurred in angel or seed deals for startups in the concept phase.
However, some experts contend that the lower numbers may not necessarily be a bad thing, as there was probably a glut of startups raising funds during the pandemic, and a slower pace of starting companies could be healthier for the market.
Founders, investors and VCs all worry the current crunch may ultimately be as rough as the dotcom bust of 20 years ago.
At the same time, VC funding’s reputation as the alpha and omega of startup financing might be overblown, Jay Wilson, investment director at U.K. investment firm AlbionVC, told PYMNTS in a recent interview.
“Venture capital is wrong for about 99% of businesses out there,” Wilson said, adding that “VC money is designed for very specific types of businesses with very specific types of ambition, and in reality, it is a very expensive financing method.”
