capital commitment

Capital commitment refers to the funds that an investor or a company pledges to invest in a project, business, or asset, but has not yet actually disbursed. This could be in the form of promises to invest in a startup, real estate, or any other venture. The commitment represents a serious intention to provide capital in the future, which helps businesses plan their finances and operations. It’s important for investors as it signals to them the level of commitment and potential future funding from other parties involved.