I don't think seed money is the problem. You start a company in the cloud using basic plans that total to $0/month.
Entrepreneurialism in the vast majority of this country, let alone the world, is not at all related to computers, the internet, cloud services, or any such hoo-hah.
We exist in a little tiny sphere in a little tiny corner of all that is small businesses.
The vast majority of entrepreneurialism that happens in the world has real costs and a need for real capital. Try running a corner store when you have no money to buy inventory, or pay rent on the space.
1and1 at the time was running a deal for 3 years free hosting. We made a site on there, put up AdSense, made enough money to buy a domain. Then made enough money to upgrade to paid shared hosting, and then dedicated hosting. It's still profitable today.