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Dictionary by pitch.dog
Fundraising process & investor pipeline · Working

Soft circle

Also called: soft commitment

ELI5

An investor says they may invest but has not committed.

Used in conversation

“Treat the soft circle as uncertain until documents are signed.”

Definition

An informal indication of potential investor interest that is not yet a binding commitment.

Here “Soft circle” means: An informal indication of potential investor interest that is not yet a binding commitment.

Pitch context

You will see “Soft circle” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches fundraising process & investor pipeline.

Why it matters: In fundraising process & investor pipeline, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 6

Direct term-level sources and supporting source families.