Funaki signed a contract with Fighting and Entertainment Group's MMA promotion, DREAM. On April 28, 2008, Funaki participated in DREAM's first ever Middle-weight Grand Prix. Funaki was matched against Kiyoshi Tamura at the opening round of the Dream 2: Middleweight Grand Prix 2008 First Round in Saitama, Japan. After a hard opening exchange between the two, Funaki was staggered by a punch and pulled guard on Tamura, from where he was pounded to an eventual TKO at 57 seconds of Round 1. This was his first TKO stoppage loss since September 14, 1998, when he was knocked out with a body blow by Semmy Schilt. With the loss, Funaki was eliminated from the Middle-weight Grand Prix.