Funambol said it will use the proceeds for continued growth in the push email market, to advance product R&D and to accelerate global expansion, particularly in Europe and Asia, as well as adding geographic support in new markets where they believe push email could take off

Funanmbol’s model is an interesting one – push email capabilities are ad funded rather than pay-up-front, with open source software – and looks like it has massive potential. After all, who doesn’t like free services? An ad funded service could be one way to break mobile email out of its corporate niche. We’ll be watching this one with interest.

So far, says the magazine, 1,700 companies have applied for funding and just two have got it. The two in question are Pelago which makes a location-based app called Whrrl, which uses data from your social network to make recommendations and iControl “which makes a home automation application that would give iPhone users remote control over air conditioners, lighting, window shades, and so on”.

For a device that’s had the innovative label stuck to it far too often, you’d think that the iPhone would have inspired some unique applications – while these Pelago and iControl’s apps are doubtless clever, there are already shedloads of similar applications on the market. Apparently, the VCs behind the fund Kleiner Perkins Caufield & Byers have also made one other offer to a start-up and are looking at 10 others seriously. Hopefully, the iPhone may inspire some inventive applications yet.