The capitalization table (or cap table) tracks the equity stakes of a company's shareholders during a series of financing rounds. Shareholders normally include the founders, investors but can also include employees or even holders of convertible debt. If new equity capital is injected, it will lead to the dilution of the equity stakes of existing shareholders and the % ownership changes. Same is true also for stock options, once exercised they will affect the % ownership of the company's equity capital. Capitalization tables can be demanded by investors as they also want to anticipate future financing rounds and have a clear view what their equity stake will be at time of their planned exit. Startups therefore should prepare a cap table to answer those questions.