Security provider PGP received an additional $10 million in funding on Wednesday from a group of investors, including DCM-Doll Capital Management, Venrock Associates, SVB Capital, and Silicon Valley Bank.

The company specializes in developing the encryption technology PGP, which stands for pretty good privacy. It plans to use the extra financing to expand research and development on network storage and mobile security.

The Palo Alto, California-based company has also been expanding internationally. The release of its desktop product, PGP Desktop 9.0.3, added localized products for Germany and Japan, along with support for double-byte character sets used in Asian languages and translated product documentation.

“PGP Corporation is a mature company with a solid financial structure and excellent operating performance,” said Ray Rothrock, managing general partner of Venrock Associates.

“Results like the third quarter of this year, with bookings the highest in the company’s history, mean new investments can be dedicated to furthering product development and innovation,” he added.

PGP is using the new funds to add security to mobile devices like the RIM BlackBerry, for which it recently created a PGP encryption application.

“Because we understand security threats and mitigation strategies, our customers continue to ask us to extend PGP encryption platform protection to data on a variety of devices,” said PGP CEO Phillip Dunkelberger.

Network Associates Disassociation

This is the second round of funding for PGP, which raised $14 million back in 2002. PGP started out in 1996 as a standalone company providing encryption for email and was acquired in 1997 by Network Associates.

Mr. Dunkelberger, along with CFO Alex Doll and the current vice president of engineering, bought the assets and formed a new company five years later.

“We had to do an A round and did a simultaneous purchase of assets from Network Associates, raised $14 million, and never raised another round until this,” said Mr. Doll. “We didn’t need to. We haven’t needed capital for operating purposes. We have most of the capital we’ve taken in still on the balance sheets.”

The latest funding round is a combination of debt and equity, he added. With the new funds, PGP will probably expand the range of mobile devices it supports to the Pocket PCand possibly Nokia Symbian-based devices as well. The company already provides encryption for files on thumb drives.