Well, this is one heck of a pay raise!

When Jyoti Bansal decided to sell his startup company, AppDynamics, to Cisco for $3.7 billion, he not only secured his future but transformed the lives of hundreds of his employees. The decision, made just days before AppDynamics was set to go public, ensured financial security for those who had helped build the company from the ground up.

Bansal’s choice wasn’t easy. He carefully weighed the potential outcomes of going public versus accepting Cisco’s offer. While an IPO could have been lucrative, he said he had estimated it would take another three to four years of flawless execution to reach the same valuation. That meant significant risk for the company and its employees. By selling, Bansal reduced that uncertainty and created a windfall for his team.

Jyoti Bansal and some of his staff. Photo from Bansal

Around 400 employees walked away as millionaires, with dozens earning more than $5 million. “We had dozens of employees with $5 million-plus outcomes,” Bansal said. Employees who owned shares saw their value skyrocket, a testament to the company’s growth and Cisco’s confidence in its future.

These are life-changing outcomes.”

The decision wasn’t just about money. Bansal also considered how AppDynamics’ software and culture would blend with Cisco’s operations. He believed the acquisition would be beneficial for the company’s 1,200 employees, both financially and culturally.

“When I started [AppDynamics], I didn’t think about a financial outcome,” Bansal said. “I just thought in terms of: This problem needs to be solved.

However, AppDynamics soon became popular for its ability to help companies troubleshoot and prevent software glitches. While the sale brought Bansal personal wealth — he owned more than 14% of the company — it also gave him a sense of fulfillment knowing his team’s hard work was rewarded. “As the founder, it was much more than life-changing money for me personally,” he said.

The biggest factor for me was our employees.”

The deal exemplified how a founder’s thoughtful leadership can create generational wealth for employees, a rarity in the tech world. Since selling AppDynamics, Bansal has moved on to new ventures, founding startups Traceable and Harness. Harness has already reached a valuation of $3.7 billion, proving Bansal’s knack for building successful companies.

For the employees of AppDynamics, however, the sale was nothing short of life-changing. It allowed many to fulfill dreams they never thought possible — buying homes, taking extended vacations, or simply enjoying financial freedom. Thanks to Bansal’s kindness and genuine care for the people who he worked for, his decision reshaped hundreds of lives forever.

Sources: My Positive Outlook | Unilad