Fatbubble says, "Privacy? You're in control. You decide who sees where you surf. Turn on fatbubble Invisibility when you need it. Your buddies won't know you're there." as seen in Red Herring ... FATBUBBLE http://www.fatbubble.com San Francisco FUNDING: $370K PRIOR FUNDING: Low seed ROUND: 1st CATEGORY: Software DESCRIPTION: Develops monitoring software applications for instant messaging (IM) platforms. LEAD INVESTORS: Two Japanese angels, Jun Makihara and Joichi Ito OTHER INVESTORS: None THE HERRING TAKE: Fatbubble has designed a monitoring software solution that collects anonymous information on users and sells it to marketers. But there's a twist. Instead of following Net surfers, Fatbubble is tracking the navigational habits of IM users. "We're building vast behavioral maps that track the movements and influences among a large network of users," says CEO and cofounder Brady Bruce. The implications for marketers and consumers are vast, and call into question privacy concerns. The affable chief declares sternly that Fatbubble is not intercepting IM discussions. Rather, the startup is charting the Web destination points that IM users visit. Once this information is collected, it'll sell it to marketers. Thus far, that's Fatbubble's only revenue stream, as the software is available for free. Mr. Brady harbors grand plans for his modest startup and will launch his product first in the States later this summer, and then take it to Japan and Western Europe. Fatbubble is burning $8,000 per month and has a post-money valuation of $3.5 million. The startup is looking to raise $3 million for its second round. Mr. Brady will consider all offers. --R.B.R.