Traceforce (YC S26) – Company-wide security monitoring for AI apps

Hey HN, we’re Xia and Varun, the founders of Traceforce (https://www.traceforce.ai/). Traceforce provides visibility and control over AI apps such as ChatGPT, Claude etc directly on all devices (laptops, sandboxes, virtual machines) by discovering not just which apps are being used but also how they are connected to other data sources via MCPs. We also have an open-source dynamic MCP pentesting tool https://github.com/traceforce/mcp-xray to detect vulnerable MCPs.The purpose of Traceforce is to:- Give a company’s employees a standardized way to ensure that AI software running on their device is operating safely- Give the company’s security team visibility of the activities of AI software on the company’s devices, and to detect and prevent unsafe actions and security breaches as early as possible.How Traceforce works1. Traceforce is installed on each device as a lightweight binary and browser extension.2. Within 30 minutes, the device is uploading live data to the company profile, displaying all the AI agents/apps running across all company devices on a dashboard.3. Company security staff can monitor the activity of all the agents in real time, implement controls, and be alerted to any security risks as soon as they arise.Here’s the video demo: https://youtube.com/watch?v=IdK2WKg7kaMThe inspiration for Traceforce came via Xia’s experience as Director of Engineering at a startup called Clumio (which was acquired by Commvault in Oct 2024). Being able to monitor how team members are using AI without slowing them down was a top priority at Clumio. After speaking with 50+ CISOs and CIOs, it became clear that this is a much-needed solution right now across industries. We keep hearing that new AI features are being adopted so quickly and so broadly that visibility and control just can't keep up.Traceforce is transparent about what we monitor and collect. By default, Traceforce collects only metadata and telemetry a

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FL score

72

out of 100

Verdict

VALIDATE

high confidence

Competition

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Enterprise security monitoring for AI tool usage that detects data exfiltration and unsafe agent behavior across company devices.

The pain

Security teams have zero visibility into which AI apps employees use, what data gets sent to them, and how those apps connect to internal systems via MCPs. A developer can paste proprietary code into Claude, or an AI agent can autonomously access databases, and the security team finds out never or too late. This creates compliance violations, IP theft, and breach risk that grows daily as AI adoption accelerates.

The gap

Existing endpoint security tools (MDM, EDR) don't understand AI-specific threats. They see network traffic but not that ChatGPT just accessed a customer database through an MCP. There's no standardized way to monitor AI agent behavior or control what data flows into LLMs. Companies are manually asking employees what AI they use, which doesn't scale and isn't trustworthy.

Build angle

Install a lightweight agent on devices that maps AI app usage, intercepts MCP connections, and streams metadata to a central dashboard. Security teams get real-time visibility of which AI tools run where, what external systems they touch, and can block unsafe connections. The open-source MCP pentesting tool builds credibility and surfaces vulnerabilities before they're exploited. Position as the missing layer between endpoint security and AI governance.

Strengths

  • Founders have credible enterprise security background (Clumio acquisition validates execution ability)
  • Problem is acute and growing, 50+ CISO/CIO validation suggests real demand, not hypothetical
  • Timing is ideal: AI adoption is outpacing security controls, creating urgent need
  • Technical moat exists: MCP monitoring is novel and hard to replicate; open-source tool builds trust and data
  • Clear go-to-market: security teams have budget and procurement processes; not competing on price
  • Lightweight architecture (binary + extension) reduces friction vs. heavy EDR replacements

Risks

  • Enterprise sales cycles are long (9-18 months); need runway to survive before first revenue
  • Endpoint security incumbents (CrowdStrike, Microsoft, Jamf) can add AI monitoring features faster and bundle cheaper
  • Privacy concerns: monitoring AI usage on personal devices or BYOD scenarios may face employee/legal pushback
  • MCP ecosystem is young and fragmented; if MCPs don't become standard, the core value prop weakens
  • Product-market fit unproven: validation was problem interviews, not paying customers; need to close first deals to confirm willingness to pay
  • Competitive entry is low-friction: any EDR vendor or new startup can build similar monitoring once the category is proven

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