Velt vs Envoy
Side-by-side comparison of AI visibility scores, market position, and capabilities
Developer SDK for embedding 25+ real-time collaboration features in SaaS apps in 30 minutes; $2.77M YC-backed at $2M revenue with 6x growth serving Pendo and Leadpages.
About
Velt is a developer collaboration toolkit that provides a JavaScript/TypeScript SDK enabling product teams to embed 25+ real-time collaborative features into their SaaS applications — including AI-powered comments and annotations, live multiplayer cursors, @mentions, in-app notifications, and guided walkthroughs — without building custom collaboration infrastructure. Backed by Y Combinator, Velt raised $2.77 million in seed funding, achieved $2 million in revenue in 2024 with 6x year-over-year growth, serving customers including Pendo and Leadpages who report up to 23% increases in weekly active users after implementing Velt's collaboration features.
CNCF-graduated cloud-native proxy powering Istio and AWS App Mesh service meshes; 2025 AI Gateway v0.1 enabling AI API traffic management competing with NGINX in Kubernetes.
About
Envoy is the most widely deployed cloud-native proxy, originally developed at Lyft and now a Cloud Native Computing Foundation (CNCF) graduated project since November 2018 — serving as the default sidecar proxy in Istio, Open Service Mesh, AWS App Mesh, and other service meshes, as well as the foundational technology behind many commercial API gateways and edge proxy products. Envoy processes traffic for millions of microservices globally, handling load balancing, service discovery, observability, and traffic management at the infrastructure layer.\n\nEnvoy's architecture as a high-performance, extensible proxy has made it the de facto standard for cloud-native network infrastructure — its xDS API for dynamic configuration allows platforms like Istio to manage Envoy configurations at scale without restarting proxies, while its rich observability (distributed tracing, detailed metrics) makes it essential for understanding microservices traffic patterns. Envoy Gateway 1.1 (released August 2024) added support for the Kubernetes Gateway API v1.1, standardizing how Kubernetes workloads expose services externally.\n\nIn February 2025, Envoy reached another milestone: the first stable open-source AI Gateway (v0.1), developed by Bloomberg and Tetrate and backed by CNCF, was built on Envoy to provide unified access management, rate limiting, and observability for AI model APIs — positioning Envoy as infrastructure for AI application traffic alongside traditional microservices traffic. Envoy competes with NGINX and HAProxy for traditional proxy workloads but has largely displaced them in Kubernetes and cloud-native environments. The 2025 strategy focuses on the AI gateway use case, continued Kubernetes Gateway API adoption, and the commercial ecosystem of Envoy-based products (Tetrate, Solo.io, and others) that fund ongoing development.
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