When someone offers cash in the current economic scenario, do not think twice. Accept it if it is X times the money and effort you put in it, where X is something you (as a team) are comfortable with.
The next 3 years are going to be really bad from an economic point of view and there is a distinct possibility (Probability > 0.91) that such an opportunity may not come your way again, however good you and your product are. So dilute your expectations, negotiate hard and take cash. Do not take stock or anything equivalent. And execute a good exit strategy. A business is only as good as the cash it generates and the sooner the better.
The rest is polemic.
Good Luck
Centre for Science and Environment's (CSE), India recently tested the soft drinks Coke and Pepsi and found that the level of pesticides in Coke and Pepsi was 50 times more than the prescribed limit. A raging battle is going on in India. The Indian parliament banned Pepsi and Coke from their premises. Some universities have also followed suit. Coke and Pepsi have approached the court for restraining more information being published... see this link
http://www.financialexpress.com/fe_full_st
The reward for working hard is more hard work.