Goldman Sachs Leads Bold $200M Power Deal

Prime Highlight

Harness secured $200 million in new funding led by Goldman Sachs, boosting its valuation to $5.5 billion.
Founder Jyoti Bansal says the company now generates more revenue than AppDynamics did before its $3.7 billion sale to Cisco.

Key Facts

Harness provides AI-driven software delivery tools that detect errors, enhance security, and manage cloud costs, and recently merged with cybersecurity startup Traceable.
The company employs about 1,300 people, is surpassing $250 million in annualized revenue with 50%+ yearly growth, and plans a $40 million tender offer for longtime employees.

Background

Harness, a fast-growing software delivery startup founded by Jyoti Bansal, has raised $200 million in a new funding round led by Goldman Sachs that values the company at $5.5 billion. The company also plans a $40 million tender offer to give longtime employees a chance to cash out part of their shares.

Bansal previously sold his earlier startup, AppDynamics, to Cisco for $3.7 billion in 2017. He said Harness is now bringing in more revenue than AppDynamics did at the time of its acquisition.

Harness builds software that helps companies manage, test, and monitor code produced with the help of artificial intelligence. The platform aims to catch errors, prevent security issues and control cloud costs as AI coding tools gain popularity. It works with leading AI models from OpenAI and Anthropic.

Venture capital firms are showing more interest in AI coding tools and are investing in startups like Cursor, Lovable, and Kilo Code. Harness acts as the layer that keeps AI-generated code safe and reliable.

Earlier this year, Bansal strengthened the company’s cybersecurity capabilities by merging Harness with Traceable, another startup he co-founded. The combined company now employs about 1,300 people in San Francisco.

Harness is expected to surpass its target of $250 million in annualized revenue, growing more than 50% year over year. Bansal said the company is preparing for a future public listing when market conditions are favorable.

Bansal stated that, with the right timing, the goal is to function as a public company while focusing on long-term growth.

The tender offer is designed to reward early employees who have been with the company through its rapid expansion.