Jyoti Bansal, the brains behind software company AppDynamics, lived a fantasy that many entrepreneurs can only dream of: launching a startup and selling it for a whopping $3.7 billion. However, what should have been a triumphant moment quickly turned into one of his biggest regrets.
Bansal, now 46, had worked for years as a software engineer in Silicon Valley before finally achieving his goal: becoming an entrepreneur. AppDynamics, the company he founded, has solved a critical problem facing large companies: fixing broken apps and preventing outages.
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But when Cisco made a last-minute takeover bid in 2017, Bansal found himself at a crossroads. The deal would make him and hundreds of his employees enormously wealthy. Despite this, he says it turned out to be his “saddest day.”
Bansal had always dreamed of building a business for financial gain while solving a problem that was plaguing his industry. “When I started [AppDynamics]I wasn’t thinking about a financial outcome,” he explains. “I was just thinking in terms of: This problem needs to be solved.” And he solved it: AppDynamics became known for its ability to help companies solve and prevent software problems.
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The sale of AppDynamics to Cisco came as a surprise. The company was about to go public when Cisco made its offer. “We weren’t trying to hold up our IPO,” Bansal recalls. “We had six days to figure out how to approach this.”
He describes sleepless nights worrying about the decision as he held discussions with the board, investors and other stakeholders. “People think it must have been an easy decision, but it was the hardest.”
The factors Bansal had to weigh were complex. There was the financial aspect: hundreds of employees could earn life-changing sums of money. “We had about 300 employees making over a million dollars,” he says.
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“Dozens walked away with $5 million or more.” In addition to the financial aspects, Bansal was concerned about whether Cisco would allow AppDynamics to continue its mission and keep the company culture intact. To Cisco’s credit, they offered AppDynamics a high degree of independence, but something was still wrong with Bansal.
After the sale, Bansal struggled with feelings of loss. “I dedicated nine years of my life to what we were building,” he reflects. “Suddenly it’s the end of a chapter.” As he walked home from the party, he realized he wasn’t ready to let go. “It was bittersweet – it felt like we were closer to the finish line, but not quite there yet.”
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In the months that followed, Bansal tried to find solace in travel. He trekked through the Himalayas, hiked Machu Picchu and went on safaris. But after six months, his bucket list was checked off and he felt aimless. “Everyone told me, ‘You need to retire. Go to the beach,'” he says. “But I’m not.”
Determined to continue solving big problems, Bansal founded another company, Harness, which also makes software tools for developers. Ironically, it was valued at $3.7 billion in 2022 – the same price Cisco paid for AppDynamics. But this time, Bansal says the story is far from over.
When asked what he would do if he received a similar offer for Harness, Bansal did not hesitate. “We have to entertain it, but I know the answer is most likely no,” he says confidently. “At AppDynamics it felt like we were closer to the finish line. At Harness, our journey is just beginning.”
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This article Selling a company for $3.7 billion was a mistake for the 46-year-old; he opens up about his ‘sad day’ of regret originally appeared on Benzinga.com
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