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FatTail raised $3.5 million in its first series A round, backed by Velocity Interactive Group, Ted Meisel, former CEO of Overture and president of Yahoo Search Marketing, and others. Velocity’s Ross Levinsohn will be joining the board.

FatTail, a Southern California company, is into helping websites make more money, through its ad optimization software, which tells Web publishers which ads and ad networks (in what combinations) will get them the most ad dollar.

The company has more than 500 customers including WebMD, Bloomberg, TheKnot, and Orbitz. The system works with any ad server, and automates the Request for Proposal (RFP) process. Levinsohn was quoted as saying:

“For a company who nobody has heard of, it has 500 clients. We like those odds. They already have revenues, and are on the verge of profits. They will be a survivor.”