Traceloop: Revenue, sale and how it was built
Traceloop (Observability and evaluation platform for LLM applications, built on the open-source OpenLLMetry, Israel): Acquired by ServiceNow, March 2026. Evidence grade E: no revenue figure was checked. Team: 2 co-founders; Y Combinator's page lists a team size of 9 (undated, read 11 November 2026); no source gives the headcount at the sale. Launched December 2022; sold 39 months after launch.Added
- Outcome
- Acquired by ServiceNow, March 2026
- Evidence
- E no revenue figure was checked
- Launch
- December 2022
- Status
- Sold, 39 months after launch
- Team
- 2 co-founders; Y Combinator's page lists a team size of 9 (undated, read 11 November 2026); no source gives the headcount at the sale
- Outside funding
- US$6.1M seed round, announced May 2025 (Calcalist, 27 May 2025)
- Main channel
- Open source
What is not verified
No sale price and no revenue figure was found. Calcalist wrote that the terms were not disclosed and estimated the price at US$60 to US$80 million without a basis. Calcalist and the company's seed post name customers, and the company's pages show a price list and a sales route through marketplaces. No independent source confirms that these customers pay. A reader could look for ServiceNow's own announcement or filings, which were not read because its website refused the request, and for a payment-processor profile. This story is grade E: the business is real and its product, price and customers are described from public pages, but no revenue figure was checked. Aiolum shows it as an idea worth studying, not as proof that it makes money.
Traceloop sells LLM observability, which means recording and measuring what an application that calls a large language model does in production. Its open-source SDK (a code library that a developer adds to a program) is called OpenLLMetry and follows OpenTelemetry, a standard format for traces. A span is one recorded step, such as one model call. The paid platform scores answers for faithfulness and relevance, and the company says it detects drift in quality.
Traceloop was announced as sold on 2 March 2026. ServiceNow, a large enterprise software company, bought it and plans to make it part of its AI Control Tower. Co-founder Nir Gazit announced this in a blog post. The terms were not disclosed.
No sale price or revenue figure was found, so this story has no money headline and is grade E. Calcalist, an Israeli business newspaper, estimated the price at US$60 to US$80 million and gave no basis. The same article says the terms were not disclosed, so the estimate is shown only as a grade D row. The company's pricing pages show a paid plan in 2024 and a sales route through cloud marketplaces.

Why did Traceloop work?
Four causes, in the order they mattered. Each one is a reusable lesson.
It gave the open-source recorder away and sold the platform
OpenLLMetry is free and Apache-2.0 licensed, as the pricing page says. Gazit wrote in May 2025 that it took off, and that the platform was built because teams wanted more detail about quality. Calcalist reported over 500,000 monthly installs. The path from free code to a paid platform is the company's own account.
Large companies appear as users before the sale
Calcalist named IBM, HiBob, Miro and Dynatrace as customers at the time of the sale, and named IBM, Cisco, Dynatrace and Miro in May 2025. Gazit's May 2025 post says Miro uses Traceloop to monitor performance at scale. No source says what any of them paid.
The buyer wanted it for governing AI systems
Gazit wrote that talks with ServiceNow began around OpenLLMetry. He wrote that ServiceNow's AI Control Tower needed deep observability and evaluation. This is the seller's account, and no ServiceNow statement was read.
How it was built
These details come from the company's own pages and from Calcalist. The pages were read after the sale announcement. They are grade C. [11, 2, 5]
- The SDK follows OpenTelemetry. The home page says the product is "built on OpenTelemetry" and works from Python, TypeScript, Go or Ruby.
- The platform traces each model call and runs quality checks such as faithfulness and relevance. Gazit's post says a team can also train a custom evaluator on its own examples.
- The pricing page says the product can run on-premise, including in air-gapped environments, and can be bought on the AWS, GCP and Azure marketplaces.
- Gazit's post says the founders spent years building machine-learning pipelines at Google and at Fiverr before Traceloop.
Tools named in the sources
Each one opens its page in the Tools tab, with every story that uses it.
Who tried this before Traceloop, and why did they fail?
Two companies in our database of failed startups sold developers tools to see and understand their software. The values below are from that database, read on 11 November 2026, and are not independently verified.
CodeSee
The promiseAutomatic visual maps of code architecture, so developers could understand, debug and refactor complex code.
Why it diedThe page says it had early traction with open-source projects and some enterprise pilots, but could not convert free users to paying customers. It shut down in 2024.
Watchsend
The promiseRecordings and analytics of how users behave inside a mobile app, for developers and designers.
Why it diedThe page says it struggled to stand out in a crowded market led by Mixpanel and Google Analytics. It adds that video data was costly to store.
The failed startups come from our database of 1,749 dead startups, retold here in our own words. Its entries are AI-assisted summaries of public sources, so these cards carry no evidence grade.
What changed
Both predecessors sold insight into software to developers. CodeSee had open-source traction and could not turn free users into paying ones. Watchsend met larger rivals.
Traceloop's own pages show a free plan, a US$100 monthly plan in 2024, and an Enterprise plan. Press names large customers. Calcalist reported over 500,000 monthly installs. Whether free users paid enough is not shown, because no revenue figure exists.
Can one person copy Traceloop now?
The pattern, yes; the outcome is not shown.
A solo founder could copy the first step: a free open-source library that fills a gap for developers. The paid platform and the sale rested on a two-person founding team, Y Combinator and a US$6.1 million seed round, per Calcalist. No revenue figure exists to say how well the paid part worked.
Where it is still open: Other layers around large language models that teams still do by hand, such as prompt versioning, cost tracking per user or test data management.
- 1Find a problem that you met yourself while building with a new kind of model.
- 2Release the part that solves it as open-source code on an open standard.
- 3Sell a hosted version with the extras that companies ask for, such as quality checks and on-premise use.
How much did Traceloop make, and what was it sold for?
Each row shows the evidence grade and the source numbers from the list at the end of this page. The grades are explained in How Aiolum verifies.
| Fact | Value | Grade | How we know | Sources |
|---|---|---|---|---|
| Sale | Acquired by ServiceNow, announced 2 March 2026 | C | Co-founder Nir Gazit's blog post says "Traceloop is joining ServiceNow". Calcalist reported the same day that ServiceNow was purchasing the company. No ServiceNow statement was read. | [2, 1] |
| Sale price, stated by the buyer or the sellers | not disclosed | E | Calcalist wrote: "The terms of the deal were not disclosed". The blog post gives no price. No filing was found. | [1, 2] |
| Sale price, a journalist's estimate | US$60 million to US$80 million | D | Calcalist, 2 March 2026: "its value is estimated at $60-$80 million". It gives no basis. A deal tracker repeats it as Calcalist's estimate. This is a range, so it is not the headline. | [1, 3] |
| Company start | December 2022 at the latest; the Traceloop name by April 2023 | C | An Internet Archive copy of vecinity.io of 15 December 2022 shows an earlier product. The archive saved traceloop.com under the Traceloop title on 29 April 2023. Gazit's March 2026 post says "Two and half years ago, Gal and I started Traceloop". | [9, 14, 2] |
| Legal entity | Vecinity, Inc. and Vecinity Israel Ltd., doing business as Traceloop | C | The terms name "Vecinity (dba Traceloop)". The domain vecinity.io serves Gazit's May 2025 blog post about Traceloop. This ties the 2022 product to the same company. | [7, 8] |
| Team | 2 co-founders; Y Combinator lists a team size of 9 | C | Gazit is CEO and Gal Kleinman is CTO. The Y Combinator page is undated. Startups Acquired wrote that neither company disclosed its headcount. | [2, 10, 3] |
| Outside funding | US$6.1 million seed round, announced May 2025 | C | Calcalist reported on 27 May 2025 that Traceloop raised US$6.1 million. It names Sorenson Capital, Ibex Investors, Samsung NEXT, Y Combinator and Grand Ventures. | [4, 8] |
| Customers named by press | IBM, HiBob, Miro and Dynatrace | C | Calcalist wrote that at the time of the acquisition "the company was serving customers such as IBM, HiBob, Miro and Dynatrace". No customer was quoted. | [1] |
| How it charges | a free plan, a Growth plan at US$100 a month in June 2024, and Enterprise with no price | C | The company's pricing page and its Internet Archive copy. Gazit's post says the company will "continue to sell the Traceloop functionality". | [5, 6, 2] |
| Open-source adoption, May 2025 | over 500,000 monthly installs of OpenLLMetry | C | Calcalist, 27 May 2025, also reports 50,000 weekly active SDK users and more than 60 contributors on GitHub. These are company figures that Calcalist retells. | [4] |
| Revenue | not found | E | No revenue figure appears in any page read. No payment-processor profile or company filing was found. | [1, 2, 3] |
| Time from the earlier product to the sale | 39 months | calc | Calculated: December 2022 to March 2026. | [9, 2] |
How to read this table. Grade C is a statement by the company or by a news report that retells the company. Grade D is a journalist's estimate without a stated basis. Grade E marks something that was looked for and not found. No value is grade A or B.
| Plan | Per month, billed yearly (US$) | Per month, billed monthly (US$) | Limit |
|---|---|---|---|
| Free, 2026 | 0 | up to 50,000 spans a month; up to 5 seats in the table | |
| Enterprise, 2026 | price not published | more than 50,000 spans a month; on-premise option; "Let's chat" | |
| Free, June 2024 | 0 | up to 10,000 traces a month; unlimited seats | |
| Growth, June 2024 | 100 | 10,000 traces a month; 1 week of data retention |
The live page shows a free plan and an Enterprise plan with no amount. The 2024 copy shows a Growth plan at US$100 a month. Today's page says the product can be bought through the AWS, GCP and Azure marketplaces. Its table says up to 5 seats for the free plan, and its FAQ says there is no seat limit.
When did Traceloop launch, and how did it grow?
From an earlier product under the same company name in December 2022 to a sale in March 2026, in 39 months. Each entry carries its grade.
- December 2022CAn earlier product, Vecinity, is online at vecinity.io. It calls itself an open-source customer management framework. The Internet Archive saved the page on 15 December 2022. [9]
- 2023CTraceloop is listed by Y Combinator in its Winter 2023 batch. Gazit's 2026 post says the founders started Traceloop about two and a half years earlier. [10, 2]
- 18 June 2024CThe pricing page, as saved by the Internet Archive, lists a free plan and a Growth plan at US$100 a month. [6]
- 27 May 2025CCalcalist reports a US$6.1 million seed round and that the commercial platform was launched. Gazit's post of May 2025 gives the same round. [4, 8]
- 2 March 2026DGazit announces that Traceloop is joining ServiceNow. Calcalist estimates the price at US$60 to US$80 million and says the terms were not disclosed. [2, 1]
What could go wrong for Traceloop?
The risks are the mirror image of the causes above.
What is not verified
No sale price and no revenue figure was found. Calcalist wrote that the terms were not disclosed and estimated the price at US$60 to US$80 million without a basis. Calcalist and the company's seed post name customers, and the company's pages show a price list and a sales route through marketplaces. No independent source confirms that these customers pay. A reader could look for ServiceNow's own announcement or filings, which were not read because its website refused the request, and for a payment-processor profile.
Earlier product and start date
A page of vecinity.io from 15 December 2022 shows a different product, an open-source customer management framework. The company's terms name Vecinity, Inc. and Vecinity Israel Ltd., doing business as Traceloop, and vecinity.io now serves a Traceloop blog post. The earlier product sets the start at December 2022 at the latest. Y Combinator lists Traceloop as founded in 2023 in its Winter 2023 batch. The founder's post dates the start about September 2023. The archive shows traceloop.com under that name on 29 April 2023. These dates do not agree, and no company register entry was read.
Trust signals on the pages
The home, pricing and About pages were read after the sale announcement and carry a ServiceNow banner. Internet Archive copies of the home and pricing pages from January 2026 show the same content. The home page shows a row of five logos (Babbel, HiBob, IBM, Miro, Target) with no caption or date. An image named "gartner cool vendor" sits above the headline, and the page text names no report or year. The page says "SOC 2 & HIPAA compliant" with no report shown. Four named chat bubbles on the home page illustrate team confusion and are not customer quotes. The About page lists investors and angel investors with their job titles. The pricing table and FAQ differ on the seat limit of the free plan.
Headcount at the sale is not known
Startups Acquired wrote that neither company disclosed its headcount, and Gazit described a small team. The undated Y Combinator page lists a team size of 9. A team above 10 at the sale would change the label of this story. The seed round was dated early 2025 in the March 2026 post and May 2025 in other sources.
Sources
The grade next to each source is the best grade that the source can support. "Read in full" means that the text of the page was downloaded and the numbers were checked in it.
- D Calcalist (Ctech), 2 March 2026: ServiceNow buys Traceloop in $60-$80 million deal, its third Israeli acquisition in under three monthsRead in full, 11 November 2026. Journalist's report. Source for the customers, the estimate and "terms ... not disclosed".
- C Traceloop blog, March 2026, by Nir Gazit: Traceloop is joining ServiceNowRead in full, 11 November 2026. Co-founder's own announcement. Source for the sale, the start and the promise to keep selling.
- D Startups Acquired, 2 March 2026: ServiceNow acquires Israeli AI observability startup TraceloopRead in full, 11 November 2026. Deal tracker that retells Calcalist and the company post. Source for the headcount remark.
- C Calcalist (Ctech), 27 May 2025: Traceloop raises $6.1 million in Seed funding to stop AI agents from going rogueRead in full, 11 November 2026. Journalist's report on the company's announcement. Source for the seed, the customers and the open-source figures.
- C Traceloop pricing pageRead in full, 11 November 2026. Source for the live plans and the marketplace route. The banner says the company is joining ServiceNow.
- C Traceloop pricing page, Internet Archive copy of 18 June 2024Read in full, 11 November 2026. Source for the Growth plan at US$100 a month.
- C Traceloop terms of service (last updated 1 January 2024)Read the opening definitions, 11 November 2026. Names Vecinity (dba Traceloop), Vecinity, Inc. and Vecinity Israel Ltd.
- C Traceloop blog, May 2025, by Nir Gazit: From vibes to visibility: Why we built Traceloop (served at vecinity.io)Read in full, 11 November 2026. Co-founder's post about the seed round. It was served from the vecinity.io domain.
- C vecinity.io home page, Internet Archive copy of 15 December 2022Read in full, 11 November 2026. Shows the earlier product. It is the only copy of that domain that the archive returned.
- C Y Combinator company page: TraceloopRead in full, 11 November 2026. Source for the Winter 2023 batch, the founded year 2023 and the team size 9, which is undated.
- C Traceloop home pageRead in full, 11 November 2026, after the sale announcement. The page carries the banner "Traceloop is joining ServiceNow!". An Internet Archive copy of 16 January 2026 shows the same logos and text. Source for the logo row, the compliance line and the SDK languages.
- C Traceloop About pageRead in full, 11 November 2026, after the sale announcement. The page carries a banner about ServiceNow. Source for the investor list and the press links.
- C Database of failed startups, local exportRecord pages read on the website on 11 November 2026. AI-written summaries, not independently verified. Source for the failed predecessors.
- C Traceloop home page, Internet Archive copy of 29 April 2023Read the page title, 11 November 2026. The page body needs JavaScript. The title is "Traceloop | Improve Reliability with Generative AI".
Run this company? Send corrections or a verified figure to aiolum@livyden.com