What type of commitment is indicated by a soft commit in the investment process?

A soft commit in the investment process indeed relates to an informal expression of interest in investing. This type of commitment typically signifies that an investor is considering putting money into a startup but has not yet made a formal decision or entered into a legally binding agreement.

A soft commit may involve discussions around potential investment amounts and conditions but lacks the rigor and formality of a hard commitment, where specific terms and agreements are outlined. This informal stage can be crucial for startups as it indicates interest from investors and can help in gauging potential funding outcomes while still allowing both the investor and the startup to navigate through due diligence and negotiations before reaching a final deal.

Overall, understanding the dynamics of soft commitments can be important for entrepreneurs as they seek to build relationships with investors and align expectations as they move toward securing funding.