A Silicon Valley entrepreneur’s billion-dollar mistake: How a dream sale turned into a nightmare of regret.
Jyoti Bansal, the visionary founder of AppDynamics, thought he had achieved the ultimate entrepreneurial triumph when he sold his company to Cisco for a staggering $3.7 billion. But what should have been a moment of unbridled joy quickly turned into a crushing sense of disappointment.
Bansal, now 46, had spent years perfecting his craft as a software engineer before taking the leap to become an entrepreneur. His company, AppDynamics, revolutionized the industry by providing a solution to a critical problem faced by large corporations: fixing broken apps and preventing outages.
However, when Cisco made a last-minute acquisition offer in 2017, Bansal found himself torn. The deal would make him and hundreds of his employees incredibly wealthy, but it would also mean surrendering control of his company. Despite the financial windfall, Bansal describes the sale as his “saddest day.”
“I didn’t start AppDynamics to make a quick buck,” he explains. “I started it to solve a real problem that plagued my industry.” And solve it he did – AppDynamics became renowned for its ability to troubleshoot and prevent software glitches.
The sale came as a surprise, with AppDynamics on the verge of going public when Cisco made its offer. Bansal recalls sleepless nights agonizing over the decision, weighing the financial benefits against the potential loss of control and company culture.
After the sale, Bansal struggled to come to terms with his new reality. He felt a deep sense of loss, having dedicated nine years of his life to building AppDynamics. The celebration party felt hollow, and he realized he wasn’t ready to let go.
In the months that followed, Bansal tried to find solace in travel, but eventually, he returned to his true passion – solving big problems. He founded another company, Harness, which creates software tools for developers. Ironically, Harness was valued at $3.7 billion in 2022 – the same price Cisco paid for AppDynamics.
But this time, Bansal is determined to write a different story. When asked what he would do if he received a similar offer for Harness, he didn’t hesitate. “We’d have to consider 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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