Selling a $3.7bn business was a mistake for a 46-year-old – he recounts it as his ‘saddest day’ of regret

Jyoti Bansal, the mastermind behind software company AppDynamics, has lived a fantasy that many entrepreneurs can only dream of – launching a startup and selling it for $3.7 billion. However, what should have been a triumphant moment quickly turned into one of his biggest regrets.

Bansal, now 46, spent years as a software engineer in Silicon Valley before finally achieving his goal of becoming an entrepreneur. AppDynamics, the company he founded, solved a critical problem facing large companies: fixing broken apps and preventing outages.

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But when Cisco swooped in with 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 has become “his saddest day”.

Bansal had always dreamed of building a company for financial gain while solving a problem plaguing his industry. “When I started (AppDynamics), I didn’t think about a financial result,” he explains. “I just thought in terms: This problem needs to be solved.” And it did – AppDynamics has become known for its ability to help companies troubleshoot and prevent software bugs.

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The sale of AppDynamics to Cisco came as a surprise. The company was on the verge of going public when Cisco made its bid. “We’re not stopping our IPO,” Bansal recalls. “We had six days to figure out how to do it.”

He describes sleepless nights agonizing over the decision, juggling conversations 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 also the financial aspect – hundreds of employees stood up to earn life-changing sums of money. “We had about 300 employees who made over a million dollars,” he says.

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“Zezi walked away with $5 million or more.” Beyond the financial aspects, Bansal was concerned about whether Cisco would allow AppDynamics to continue its mission and keep its company culture intact. To Cisco’s credit, they have given AppDynamics a high degree of independence, but something still doesn’t sit well with Bansal.

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After the sale, Bansal struggles with feelings of loss. “I spent nine years of my life completely dedicated to what I was building,” he reflects. “Suddenly, it’s the end of a chapter.” Walking home from the holiday party, he realized he wasn’t ready to give up. “It was bittersweet – it felt like we were closer to the finish line, but not quite there.”

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In the months that followed, Bansal tried to find solace in travel. He hiked the Himalayas, hiked Machu Picchu and went on safari. But after six months, his list was ticked off and became pointless. “Everybody said to me, ‘You should retire. “Go to the beach,” he says. “But it’s not me.”

Determined to continue solving big problems, Bansal founded another company, Harness, which also creates 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.

Asked what he would do if he received a similar offer for Harness, Bansal didn’t hesitate. “We should have fun, but I know the answer is most likely no,” he says confidently. “At AppDynamics, we felt we were closer to the finish line. At Harness, our journey is just beginning.”

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This article Selling a $3.7 billion business was a mistake for a 46-year-old — he recounts it as his ‘saddest day’ of regrets originally appeared on Benzinga.com

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