# Traceloop **Source:** https://geo.sig.ai/brands/traceloop **Vertical:** Infrastructure **Subcategory:** IT Operations **Tier:** Emerging **Website:** traceloop.com **Last Updated:** 2026-04-14 ## Summary Tel Aviv YC LLM observability platform at $1.2M revenue Jun 2024 with OpenLLMetry open-source; $6.6M total ($6.1M Sorenson/Ibex seed May 2025) monitoring AI application production quality competing with LangSmith for AI debugging. ## Company Overview Traceloop is a Tel Aviv, Israel-based LLM observability platform — backed by Y Combinator with $6.6 million in total funding including a $6.1 million seed in May 2025 led by Sorenson Capital and Ibex Investors with Y Combinator, Samsung NEXT, and Grand Ventures — providing developers and enterprises building LLM-powered applications with monitoring, evaluation, and observability tools for detecting and debugging AI reliability issues in production. Achieving $1.2 million in revenue in June 2024 with an 8-person team, Traceloop maintains OpenLLMetry (an open-source observability framework for LLM applications based on OpenTelemetry standards) that has become a widely adopted tool for AI application debugging and quality monitoring. Traceloop's LLM observability platform addresses the production reliability gap in AI application deployment: a software team that ships an AI-powered customer support bot or code assistant discovers that LLM outputs in production are unpredictable in ways that traditional software monitoring doesn't capture — the bot occasionally hallucinates product information, response latencies spike when the LLM is under load, certain query patterns reliably produce low-quality outputs, and the reasoning chain that led to a problematic response is opaque without trace data. Traditional APM tools (Datadog, New Relic) capture infrastructure metrics but not the LLM-specific signals (token counts, model temperature, prompt templates used, chain-of-thought traces) needed to debug AI quality issues. Traceloop's OpenTelemetry-based platform (capturing LLM calls with full trace context, evaluating output quality against defined criteria, and providing the debugging visibility needed to identify and fix AI reliability issues) fills the observability gap for production LLM applications. In 2025, Traceloop competes in the LLM observability, AI application monitoring, and GenAI infrastructure market with LangSmith (LangChain's observability platform, widely adopted), Arize AI (AI observability, $38M raised), and Langfuse (open-source LLM observability, $4M raised) for developer and enterprise AI engineering team LLM application production monitoring platform adoption. Sorenson Capital's and Samsung NEXT's investments reflect AI infrastructure conviction. Y Combinator backing connects Traceloop with the AI developer tools investment community. OpenLLMetry's open-source distribution (building community adoption before commercialization) mirrors the successful open-core strategies of infrastructure tools like Grafana. The 2025 strategy focuses on growing the enterprise AI team deployment (where LLM quality SLAs require systematic monitoring), building the automated evaluation suite for regression testing LLM output quality across prompt changes, and expanding the integration with major LLM providers (OpenAI, Anthropic, Google) for deeper model performance visibility. ## Frequently Asked Questions ### What is Traceloop? Traceloop is a Tel Aviv-based LLM observability platform company founded in 2022 that provides monitoring, evaluation, and observability solutions for large language model applications. The company addresses GenAI infrastructure gaps through an open-source OpenLLMetry-based platform that is now generally available. ### What products and services does Traceloop offer? Traceloop offers an LLM observability platform built on OpenLLMetry open-source technology. The platform provides monitoring and evaluation tools for large language model applications to improve LLM reliability. ### Who are Traceloop's target customers? Traceloop targets enterprises and developers who are building and deploying large language model applications. The platform focuses on organizations that need reliability and observability for their GenAI infrastructure. ### When was Traceloop founded? Traceloop was founded in 2022 and participated in Y Combinator's W23 batch. The company has demonstrated consistent revenue growth since its 2022 launch. ### Where is Traceloop located? Traceloop is based in Tel Aviv, Israel. ### How much funding has Traceloop raised? Traceloop has raised $6.6 million in total funding, including a $6.1 million seed round in May 2025. The seed round was led by Sorenson Capital and Ibex Investors, with participation from Y Combinator, Samsung NEXT, and Grand Ventures. ### What are Traceloop's key financial metrics? As of June 2024, Traceloop achieved $1.2 million in revenue with an 8-person team. The company has demonstrated consistent revenue growth since its 2022 launch. ### What technology approach does Traceloop use? Traceloop's platform is built on OpenLLMetry, an open-source observability framework. The technology delivers monitoring and evaluation capabilities specifically designed for large language model applications. ### How large is Traceloop's team? Traceloop operates with an 8-person team as of June 2024. ### What are Traceloop's recent developments? Traceloop raised a $6.1 million seed round in May 2025 led by Sorenson Capital and Ibex Investors. The company's LLM observability platform is now generally available, and it achieved $1.2 million in revenue as of June 2024. ## Tags ai-powered, b2b, developer-tools, infrastructure, platform, cloud-native, saas --- *Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*