when a small company starts it must create a capitalization strategy that outlines how the company will use its scarce resources to start operations based on initial forecasts business owners may project how much financing they need to ensure profitability and sustainability until the company can be self sustaining whether it is raising equity from a private investor applying for debt or contributing personal capital these funding sources combined comprise of the capitalization strategy 
the bottom linecapitalization refers to a few different things across business in accounting capitalization refers to long term assets with future benefit instead of expensing costs as they occur they may be depreciated over time as the benefit is received in finance capitalization refers to the financing structure and sourcing of funds 