For many, Jyoti Bansal appeared to be on top of the world when he received a staggering $3.7 billion acquisition offer for his software startup, AppDynamics, from tech giant Cisco. However, this moment of triumph soon turned into one of his greatest regrets.
When Cisco swooped in with a last-minute offer in 2017, Bansal found himself facing a difficult decision. Although the financial gain was substantial, the day of the deal became known to him as his “saddest day.”
Reflecting on the journey, Bansal told CNBC, “When I started AppDynamics, I didn’t focus on financial outcomes. My aim was to solve a pressing problem.”
What is AppDynamics?
Founded in 2008, AppDynamics specializes in application intelligence, providing enterprises with real-time insights into application performance. Bansal served as the CEO for the first eight years and then took on the role of founder and chairman until its acquisition by Cisco.
Who is Jyoti Bansal?
Now based in San Francisco, Jyoti Bansal is a multi-unicorn founder and a serial entrepreneur in the tech industry. He currently leads two high-growth companies: Harness, a platform designed to automate software delivery processes, which was valued at $3.7 billion as of 2022, and Traceable AI, a cybersecurity solution focused on safeguarding software applications.
Bansal’s ventures reflect his strong conviction that software can significantly improve the world. He holds a Bachelor of Science in Computer Science from the prestigious Indian Institute of Technology, Delhi, and worked as a software engineer in Silicon Valley before becoming an entrepreneur. A prolific innovator, Bansal has been awarded over 25 patents.
His leadership has earned him numerous accolades, including Forbes’ title of “Best Cloud Computing CEO to Work For,” recognition as “Best CEO” by the San Francisco Business Times, and the Ernst & Young Entrepreneur Of The Year award for Northern California.
A Decision with Employee Impact
When Bansal made what he described as “the hardest decision” of his career—selling his first startup—he prioritized his employees’ welfare. A spokesperson revealed that around 400 employees of AppDynamics saw their shares reach a minimum value of $1 million post-acquisition. “We had dozens of employees with outcomes exceeding $5 million. These are life-changing results,” he noted.
Through this decision, Bansal not only secured a financial windfall for himself but also significantly impacted the lives of many employees, turning them into millionaires.
