why do startups need cap tables 
startup companies generally have only a small number of equity owners they often include the founders friends and family of the founders and angel investors keeping track of who owns what stake in the new company is important as it grows and raises capital from other sources such as venture capitalists and ultimately to the public via an initial public offering ipo 2the cap table will be updated after each subsequent funding round showing how ownership becomes diluted and spread across new owners as it grows 