Soft Cap

Setting a soft cap that is at least 10% of the hard cap is essential for ensuring a minimum level of funding required to execute the project's objectives. A soft cap represents the minimum amount of funds needed to consider the project viable and to proceed with its development. By establishing a soft cap at 10% of the hard cap, you ensure that there is a reasonable threshold to gauge the project's viability and progress.

Furthermore, it is recommended to set the soft cap at 50% or more of the hard cap. This provides a more significant buffer and increases the likelihood of achieving the project's goals even if funding falls short of the hard cap target. A higher soft cap also demonstrates a higher level of confidence in the project's success and sustainability, which can attract more investors and support during the fundraising process.

In summary, setting a soft cap at least 10% of the hard cap, with a recommended threshold of 50% or more, helps provide a clear funding target for the project while ensuring flexibility and resilience in achieving its objectives.