Indian-origin founder turns 400 employees into millionaires by selling his startup

Jyoti Bansal, the 46-year-old Indian-origin founder of AppDynamics, made a life-changing decision for hundreds of his employees when he sold his software startup for $3.7 billion.

In 2017, just days before AppDynamics was set to go public, Cisco offered to acquire the company. Although Bansal could have seen financial success by going public, he chose to accept Cisco’s offer, ensuring that many of his employees benefited immensely.

As a result of the sale, around 400 employees became millionaires, with some even receiving more than $5 million.

Bansal explained that his primary motivation was to minimize risk for his team and create significant financial opportunities for them. He believed that achieving Cisco’s valuation of $3.7 billion through an IPO would have taken "three to four years of great execution," and would have involved risks for the company’s nearly 1,200 employees.

Although Bansal later had some regrets, wishing he had continued growing the company, he acknowledged that selling was the best decision at the time. He has since gone on to co-found two other successful software companies, Traceable and Harness, with Harness being valued at $3.7 billion in 2022.

The sale not only changed the lives of AppDynamics employees but also had a profound impact on Bansal, who owned over 14% of the company. Despite the personal financial windfall, Bansal emphasized that the well-being of his employees was his biggest concern. Following the sale, many employees celebrated their newfound wealth by purchasing homes, cars, and even taking extended vacations.