His father Adolf Funke, originally from Magdeburg, was President of the Alsatian Railway Company in Strassburg (Strasbourg).

On 10 August 1904, Funke witnessed the Battle of the Yellow Sea, and as a safe haven, Tsing Tao received the damaged Russian battleship Tsesarevich.

On 15 August 1904, Vice-Admiral Dewa Shigetō sent the Japanese destroyer Ikazuchi to Tsing Tao to discuss details of the Russian fleet with the governor of Tsing Tao and Admiral Funke, who boarded the Ikazuchi and made a note of the impressive state of cleanliness and order of both ship and crew.

Later, he received the Order of St. Anna from Tsar Nicholas II of Russia after he had allowed more Russian ships to take refuge and be interned at Tsing Tao, under approval by Admiral Togo, at the fall of Port Arthur on 2 January 1905; the Russian crews were ill and had needed medical care.

He disagreed with some views of Grand Admiral Prince Heinrich of Prussia, specifically with regards to using submarine warfare.