I tried pointing application servers to parasoft JDBC driver but it is not recording /capturing database query and my application doesn't start.
I suppose that you have wrong configuration for wrapping JDBC driver with Virtualize's proxy.
Are you able to provide following information:
-what DB are you using
-what JDBC driver are you using
-how do you call JDBC driver in your application
-how did you called Virtualize's JDBC proxy
-do you see any messages related to JDBC connection in logs of your application
Here you can find more details regarding JDBC proxy driver configuration.