- Microsoft pulls the plug on its Startups program in favour of a new scheme
- From July 2025, startups will need to join a two-track system
- For the most credits, startups will need a referral
Microsoft has pulled the plug on a popular program designed to support startups by offering them up to $150,000 in Azure credits, according to a new memo posted on 27 June, 2025, but it’s not gone forever.
Instead, the company is making changes to the program – Microsoft will continue to support startups, but this time via a two-track system that gets its support from investors as well as the company itself.
Microsoft stressed existing activated credits remain valid until they expire, however new applicants will be guided down the two-track system, which came info effect on July 1.
Microsoft for Startups program undergoes a big shift
The new program will first consist of an investor-backed track – arguably the most valuable to startups.
It consists of $100,000+ in Azure credits, but requires a referral from an affiliated investor, such as accelerators, venture capitalists and universities. Eligible startups can also unlock additional benefits based on program engagement and their investor.
Dedicated support channels, co-marketing initiatives and tailored resources are also available.
Secondly is the self-service track, which is open to startups with no investor backing that are new to Azure. Up to $5,000 in Azure credits are available, comprising $1,000 that are available for 90 days upon signup and a further $4,000 that remain available for 180 days after business verification.
However, there is no dedicated support on this track – it’s self-serve only.
The abrupt change could cause disruption to many startups who may have already budgeted based on the previous $150,000 credit availability, with most startups unlikely to refocus their strategies given the short notice period.
It’s unclear how the changes could affect Microsoft’s model, too, with Google offering up to $200,000 in credits (or $350,000 for eligible AI startups) and AWS offering up to $100,000 and an additional $30,000 for startups using AWS Trainium or Inferentia.