The Redwood City, California-based company is behind Sync4j, an open source mobile application server that implements the SyncML data synchronization and device management standard that links mobile devices to network-based applications and data.

The $5m funding round was led by Walden International and HIG Ventures, based on their view that open source software is poised to make the same impact on the mobile software market that is has had on the infrastructure market.

Funambol is already boasting 18,000 downloads a month for Sync4j, and last month announced a collaboration with mobile giant Nokia Corp to ensure compatibility between Sync4j and Nokia’s mobile devices.

Sync4j clients are available for Microsoft Corp’s Outlook and Windows Mobile-based devices as well as Blackberry, iPod, Java Phones, Palm, and Symbian devices. It also provides support for multiple development languages including Java, .NET, and C++.