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Corona Networks announced Thursday that it raised a $40 million third round of funding, led by Merrill Lynch Ventures and New Enterprise Associates. Other investors included The Ignite Group, Alliance Ventures and Redwood Ventures. Milpitas, Calif.-based Corona has raised a total of $68 million. The company offers Internet Protocol-based services, such as encryption and security for Internet service providers, which in turn resell that service to their customers.