Jyoti Bansal, the Indian American founder of AppDynamics, made a regretful decision when he sold his startup to Cisco for $3.7 billion at the age of 39. Despite the financial success of the deal, Bansal admitted in an interview with CNBC Make It that it was the “saddest day” of his life.
Bansal, who hails from Rajasthan, India, had always dreamed of becoming an entrepreneur. After working as a software engineer in Silicon Valley for eight years and obtaining a Green Card, he launched AppDynamics to create tools for troubleshooting software application flaws. The sale of the company to Cisco made Bansal and hundreds of employees instantly wealthy, but it left him feeling aimless and unfulfilled.
After spending six months traveling the world, Bansal founded a new startup called Harness, which also focuses on creating tools for software developers. The company was valued at $3.7 billion in 2022, the same amount that AppDynamics was sold for. Bansal expressed that he would likely turn down a similar offer for Harness today, as he felt a deep sense of loss and unfulfillment after selling AppDynamics.
Despite the financial success of the sale, Bansal realized that he missed the intense and stressful process of building a company, creating products, and competing in the market. He initially considered retiring but soon discovered that he wanted to continue building and growing companies. Bansal emphasized that the journey with Harness was just beginning, and he was focused on expanding into new markets, products, and solving more problems.
When asked about the possibility of selling Harness or considering an IPO, Bansal stated that he would entertain any offers but was likely to decline. He highlighted the importance of continuing the journey with Harness, focusing on growth, and creating an organizational culture that fosters innovation and problem-solving. Bansal’s experience with AppDynamics taught him the value of building something meaningful and impactful, and he was determined to see Harness reach its full potential.
