I hate to do this.

In one short essay, I’m going to crush the dreams of many a fundraising founder. How? By shedding some light on what many have been using to fill their sails: an insidious little thing called a soft commit. And I’ll do it without a single cheap pun.

Brace yourselves.

First – what is a soft commitment in fundraising?

Answer:
A soft commitment is when an investor says they’re interested but isn’t legally bound — and often has no real intention to follow through. These “commitments” usually come with vague conditions like “once you find a lead investor,” “after you raise a certain amount,” or “if performance improves.”

Even when founders meet those conditions, the investor can easily back out without consequence. It’s one of the most misleading forms of traction in fundraising.

Why soft commitments fall apart

Answer:
Because they were never solid to begin with.
Investors can back out for countless reasons — none of which you can control:

• Another deal came up. They found a shinier opportunity and reallocated their funds.
  
  
• Lack of time. Due diligence takes effort, and “we’re too busy right now” is an easy out.
  
  
• Lack of capital. “We had the capital when we said yes. Now we don’t.”
  
  
• Loss of interest. Markets shift, competitors pop up, and excitement fades.
  
  

And because soft commits aren’t verifiable, even mentioning them to real leads carries little weight. You could claim a million dollars in soft commits, but no one can confirm if half of that’s real.

how do you turn soft commits into hard commits?

Answer:
There’s only one real way to turn a soft commitment into a firm one: create FOMO.
Investors need to believe a deal is happening — and fast — or risk missing out.

Here’s how founders can do it:

1. Show movement. If you already have a lead investor, tell others the deal is closing and there’s limited allocation left.
   
   
2. Create urgency. Let them know others are joining — momentum breeds confidence.
   
   
3. Leverage social proof. “We’ve got a couple commits and ten more interested.” The perception of progress turns maybes into yeses.
   
   

That’s the trick: make them believe they’ll lose something by waiting.

what are common mistakes a founder can make (they’re too soft)

Answer:
Founders often treat soft commitments like hard ones — and that’s where things go wrong.

1. Projecting naiveté
Excitedly announcing “we have $1M in soft commits” signals inexperience. Seasoned investors know soft circles mean nothing until wires hit.

2. Bad planning
Counting soft money as real money leads to bad decisions: over-hiring, overspending, or expanding too soon.

3. Easing up too early
Believing those commitments are secure often makes founders slow down their outreach. Fundraising requires momentum — once you ease off the gas, your round can stall entirely.

Soft Takeaways

Answer:
Just kidding — this is a hard takeaway.
Soft commitments aren’t reliable. Don’t count them, don’t bank on them, and definitely don’t stop fundraising because of them.

They’re part of the process, yes, but treat them like what they are: expressions of interest, not money in the bank.

Approach them with eyes wide open. Keep the pressure on, follow up strategically, and maintain communication — but assume they don’t mean much until funds are wired.

The simplest rule?
👉 Assume soft commits are worthless — and be pleasantly surprised when they’re not.

Key Takeaways

• A soft commitment isn’t legally binding — it’s just interest, not investment.
  
  
• Investors can back out anytime and often do.
  
  
• The only way to turn one firm is by creating urgency and real momentum.
  
  
• Treat soft commits as zero until wired funds prove otherwise.
  
  
• Keep fundraising like you have nothing — because until the check clears, you don’t.
  
  

FAQs

Q: What’s a soft commitment in fundraising?
A: A verbal or informal promise to invest that isn’t binding and can fall through anytime.

Q: Why are soft commitments risky?
A: Because they give founders false confidence and mislead future investors about traction.

Q: How do you convert soft commits into real ones?
A: Show momentum — find a lead, create urgency, and make others fear missing out.

Q: Should you tell other investors about soft commitments?
A: Only if you can back them with credible movement (like a confirmed lead). Otherwise, it weakens your position.

Q: What’s the mindset founders should keep?
A: Assume every soft commit equals $0 until it’s wired — then act accordingly.

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