Valuation Projections for a Venture Capital Startup

As a recent associate at a venture capital firm, you have been tasked with evaluating the potential exit valuation of a startup that develops a revolutionary technology in renewable energy. The startup has shown significant promise, having achieved a series A financing round at a post-money valuation of $10 million, with investors receiving a 25% ownership stake in return for their investment. With growing market interest, the company is projecting a revenue of $5 million in the next year, with an expected growth rate of 50% per year for the following three years.

Your firm believes that the startup could either be acquired by a strategic buyer at a number reflecting a price-to-earnings (P/E) ratio comparable to the industry average or pursue an initial public offering (IPO) at a more aggressive valuation. The industry P/E ratio is estimated to be 20x. If the firm does go public, you estimate it could command a multiple of 30x. Based on these assumptions, what is the most reasonable valuation projection for the startup after four years, given an exit strategy?