Back to glossary
Soft Cap
A soft cap is a term used in crowdfunding and initial coin offerings (ICOs) to describe the minimum amount of funding that a project needs to raise in order to proceed. It is a fundraising goal that, if achieved, will allow the project to move forward, but it is not a mandatory requirement.
The money raised during an ICO may be returned to investors if a project’s soft cap is not reached. This is so that, in the event that they fall short of their minimal financing goal, the project team may not have the resources necessary to create and launch the project as planned.