A model I like is that founders need to earn their equity, i.e. everyone gets restricted shares.
So you determine what work needs to be done and the value of doing it.
If you do that, you get your shares. If people don't deliver, they lose their shares, and you can compensate new people with those shares or other founders can get compensated for doing that work too.
Monetary funding is separate from that. Putting in cash gets an instant percentage of the company. That's usually e.g. 20% of the company for putting up the cash, even though based on risk it should be more.
So you determine what work needs to be done and the value of doing it. If you do that, you get your shares. If people don't deliver, they lose their shares, and you can compensate new people with those shares or other founders can get compensated for doing that work too.
Monetary funding is separate from that. Putting in cash gets an instant percentage of the company. That's usually e.g. 20% of the company for putting up the cash, even though based on risk it should be more.