Sri Krishna
In 2017, Jyoti Bansal, the founder of software startup AppDynamics, faced a life-changing decision when tech giant Cisco offered to acquire his company for a staggering $3.7 billion. What should have been a moment of celebration for Bansal quickly became bittersweet, as he reflects on the experience as one of his biggest regrets.
Bansal had dedicated years of his life to building AppDynamics, an application intelligence company founded in 2008, which provides enterprises with real-time insights into their application performance. The company became well-known for helping businesses troubleshoot and prevent software glitches, making it an essential tool in the rapidly growing software market. But when Cisco made its last-minute acquisition offer, Bansal was faced with a difficult choice.
Despite the financial windfall, Bansal didn’t start AppDynamics with money in mind. “When I started [AppDynamics], I didn’t think about a financial outcome. I just thought in terms of: This problem needs to be solved,” Bansal told CNBC.
Yet, after nearly a decade of leading the company as CEO, he ultimately decided to sell it. One of the key reasons behind his decision? His employees. Approximately 400 AppDynamics employees became millionaires as a result of the deal. Bansal ensured that many of his team members would benefit from the company’s success, with some employees seeing their shares grow to $5 million or more. “These are life-changing outcomes,” he said.
However, despite the life-altering rewards for his team, Bansal felt an emotional toll. He described the sale as his “saddest day,” a difficult moment for an entrepreneur who had poured his heart into building the business.
Who is Jyoti Bansal?
Jyoti Bansal is a multi-unicorn founder, serial technology entrepreneur, and a highly regarded mentor and investor in the tech industry. Born and raised in India, Bansal earned a BS in Computer Science from the prestigious Indian Institute of Technology (IIT) Delhi before moving to Silicon Valley. Before becoming an entrepreneur, he worked as a software engineer in the valley.
Bansal is not only known for founding AppDynamics but also for his work with other high-growth tech companies. Today, he serves as the founder and CEO of two innovative startups: Harness, a platform automating software delivery processes that was valued at $3.7 billion in 2022, and Traceable AI, a cybersecurity platform dedicated to securing software applications.
His approach to business and technology is driven by a core belief: software can make the world a better place. As a prolific inventor, Bansal holds more than 25 patents and has been recognized with numerous leadership awards, including Forbes’ “Best Cloud Computing CEO to Work For,” “Best CEO” by the San Francisco Business Times, and Ernst & Young’s Entrepreneur of the Year for Northern California.
The Impact of the AppDynamics Sale
When Bansal sold AppDynamics, it was not just a financial success—it changed the lives of hundreds of employees. “We had dozens of employees with $5 million-plus outcomes. These are life-changing outcomes,” he said. Around 400 employees became millionaires overnight due to their shares in the company.
Despite the massive financial success, the emotional weight of the sale still lingers for Bansal. His experience highlights the complex nature of being a founder, where the love and passion for the business sometimes outweigh the financial rewards. For Bansal, the acquisition marked the end of a chapter he had built from scratch, but it also provided his team with opportunities for their future.
Bansal continues to shape the tech world through his ongoing ventures, proving that his entrepreneurial journey is far from over.
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