Actually, they're the same thing: both are computed as (number of shares outstanding) * (price per share).
The difference is that market cap is used for companies that have IPO'd (and therefore have a broad market for their shares with continuous price adjustments) versus companies that have raised money through private markets (and therefore have infrequent price adjustments).
One can reasonably argue that valuations are less precise than market caps as a result, but both are dictated by sophisticated investors and should be more or less correct on average.
(In fact, valuations are less precise, but this has a lot more to do with the amount of uncertainty inherent in any early-stage company than it does with the availability of shares on a public market; Wall St. has its ups and downs just like Silicon Valley.)
Actually, they're the same thing: both are computed as (number of shares outstanding) (price per share).*
No, they are not the same thing. They are calculated the same way, but Market in the phrase Market Cap means "public (share) markets".
market cap is used for companies that have IPO'd [(] and therefore have a broad market for their shares with continuous price adjustments
A pretty important distinction! If a share is "valued" at a price but there are no buyers then the valuation isn't shared by many others.
To be clear: I understand that the math is the same, but a market cap shows the consensus view of the market, while a funding valuation only shows the value a small set of investors put on a company.
The difference is that market cap is used for companies that have IPO'd (and therefore have a broad market for their shares with continuous price adjustments) versus companies that have raised money through private markets (and therefore have infrequent price adjustments).
One can reasonably argue that valuations are less precise than market caps as a result, but both are dictated by sophisticated investors and should be more or less correct on average.
(In fact, valuations are less precise, but this has a lot more to do with the amount of uncertainty inherent in any early-stage company than it does with the availability of shares on a public market; Wall St. has its ups and downs just like Silicon Valley.)