When Jyoti Bansal sold his software startup, AppDynamics, for a jaw-dropping $3.7 billion in 2017, he didn’t just cash out—he made 400 of his employees millionaires overnight. But despite the massive payday, the San Francisco-based entrepreneur, originally from India, says the sale was “the hardest decision” of his life.
Speaking to CNBC, Bansal revealed that AppDynamics was just days away from going public when Cisco came in with a multi-billion-dollar offer. He knew he’d be rich either way, but the deal meant a better future for his nearly 1,200 employees. “It was the right decision, but it wasn’t easy,” he said.
However, Bansal’s decision wasn’t just about the money. He weighed the risks of taking AppDynamics public against the certainty of Cisco’s offer. He estimated that it would have taken years of flawless execution to reach the same market cap. “By opting for the sale, I mitigated that risk, securing the financial future of my employees while aligning AppDynamics with Cisco’s expansive portfolio,” he said.
“We could be part of a bigger platform, like Cisco, and their customer base and market. That’s one factor. The second is culture, what kind of home your employees get. Cisco, to their credit, did an excellent job giving a high degree of independence to the AppDynamics unit,” Bansal explained.
Even with the massive success, the sale left Bansal feeling unfulfilled. “We had a huge party at the office with the Cisco folks. Everyone was celebrating,” he recalled. “But as I walked home, I felt sad and lost. I’d spent nine years building that company. It was like the end of a book.”
Though financially secure, Bansal admitted that the emotional toll was heavy. “As a founder, it wasn’t just about the money. There was a deep connection with the company. It’s a great outcome in many ways, but it’s the end of a chapter, or the end of a book, in many ways too. I was kind of lost.”
Still, selling to Cisco was the right move. “It reduced years of risk for my employees. For me, it was life-changing money. But the biggest factor was taking care of the people who helped build the company,” Bansal said.
Since the sale, Bansal has continued his entrepreneurial journey, co-founding two new startups: Traceable and Harness. When asked if he would sell these ventures like he did AppDynamics, his answer was clear: “No—unless something crazy happens.”
