Soft Circle
A Soft Circle refers to an informal expression of investment interest from an allocator. It is non-binding and typically used in the early stages of fundraising to gauge potential investor interest.
A Soft Circle is a term used in investment fundraising to indicate non-binding interest from potential allocators. When an allocator shows a soft circle, they are signaling their willingness to invest without committing to a specific amount or timeline. This term is often used early in the fundraising process to help fund managers gauge the level of interest and potential capital that could be raised. Unlike a Hard Circle, which is a formal commitment to invest, a Soft Circle is more of a "tentative" or "conditional" commitment.
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