Who would you prefer to pay rent to?
The reality is unless you’re some rich dude who can borrow dad’s datacenter (And that’s cool if so), you’re either going to be renting colo space, virtual servers, etc.
It’s always a challenge in business to avoid the trap of spending dollars to save pennies.
IMO, you’re better off working in AWS/GCP/Azure and engineering around the strengths of those platforms. That’s all about team and engineering discipline. I’m not in the startup world, but I’ve seen people lift and shift on-prem architecture and business process to cloud and set money on fire. Likewise, I’ve seen systems that reduced 5 year TCO by 80% by building to the platform strengths.