I think she used a valuation of $5mil when doing her calculations. What are the odds the company will exit at that number? What are the odds it'll exit higher? What are the odds that it'll flame out and be worth nothing? Will her shares dilute? How much more does she feel she should earn to make up for all of this extra risk she's assuming?
She doesn't appear to consider any of this. At least, I don't see any numbers that take this stuff into account.
She's using the note valuation; she didn't just make up $5MM.
Those are all good questions to ask. Some of them are questions she considers, some of them aren't.
Ultimately, though, the question of how you --- a prospective employee --- value equity is orthogonal to the question this post engages with, which is "how do I take the valuation for my role that I arrive at and effectively communicate it to the prospective employer so as to improve my initial offer". And, in that regard, I think this is a very good and useful post.
She doesn't appear to consider any of this. At least, I don't see any numbers that take this stuff into account.