Soft Cap

A soft cap is a financial target set during a fundraising campaign, such as a crowdfunding or investment round. It represents the maximum amount the organizers aim to raise, indicating a flexible goal that, once reached, may prompt the campaign to conclude or reassess. Unlike a hard cap, which caps the total funds strictly, the soft cap allows for some flexibility in fundraising efforts. Achieving the soft cap shows strong interest and support, helping to validate the project's value, while exceeding it can indicate robust demand or investor confidence.