It was founded in 1987 by four graduates of the California Institute of Technology[1] who planned to commercialize the parallel computing software tools they had been working on for the Caltech Cosmic Cube,[2] which was the first working hypercube computer built.

Starting with runtime error detection for C and C++ with their Insure++ product, they also added capabilities for static code analysis, unit testing, and ultimately expanded to include application security, functional testing, and service virtualization.

In 1996, Parasoft submitted a patent application for their rule-based static code analysis.

[6][7] In 1996, Parasoft submitted patent applications for technology that automatically generates unit test cases.

[13][14] For service virtualization, Parasoft technologies are used to automatically capture and emulate dependent system behavior of mainframes, third-party components, or any system component that is unavailable or difficult to access for development and testing purposes.