It’s important to keep a record of all ownership and equity of your startup. A capitalization table, more commonly called a cap table, is a visual record of your startup’s equity capitalization.
Your equity capitalization includes investments by founders, venture capitalists, angel investors, and any employees or advisers who own shares in your business.
Cap tables allow you to keep track of your equity and give you a reference for distributing it. Additionally, you can use it to create and track incentives like stock options.