In 2017, Jyoti Bansal, a San Francisco-based entrepreneur born in India, made headlines when he sold his software start-up, AppDynamics, for $3.7 billion. The sale, which benefited nearly 400 of his employees by turning them into millionaires, was a bittersweet moment for Bansal, as reported by CNBC.
AppDynamics, known for helping large companies fix problematic applications, was days away from going public when communications tech giant Cisco made an unexpected offer to buy the company. While Bansal would have become wealthy regardless, he said accepting Cisco's offer ensured a better future for many of his 1,200 employees.
Though the deal was a major financial success, Bansal described the decision to sell as "the hardest" of his career. He recalled the mixed emotions he felt on the day of the sale. “We announced the sale, and then we had a huge party at our office in San Francisco. Folks from Cisco were there. It was a very happy celebration,” the 46-year-old entrepreneur told CNBC. “But walking home after, I was sad and depressed... It’s the end of a chapter... I was kind of lost.” AppDynamics
Bansal had dedicated nine years to building AppDynamics, which he founded in 2008. Despite the successful outcome, he expressed a sense of unfinished business. "I really enjoyed building the company, creating products, solving problems, and competing in the market," he said. "I also felt like we didn’t fully finish what we could’ve done."
However, Bansal acknowledged that selling to Cisco was the right decision based on the circumstances at the time. The deal also had significant financial benefits for him, as he owned more than 14 percent of the company. He estimated that it would have taken another four years of strong execution to reach a similar valuation, which would have involved considerable risk for the employees.
"That’s the bittersweet part of selling your company," Bansal reflected. "It’s a great outcome in a lot of ways, but it’s the end of a chapter."
Today, Bansal is the CEO and co-founder of two other software start-ups, Traceable and Harness. Harness was valued at $3.7 billion in 2022. When asked if he would consider selling his new ventures, Bansal replied, "The answer is no — unless something crazy happens."