Mimosa Systems, an email archiving company based in Santa Clara, has raised $17 million in a third round of financing, and plans to use the cash expand into Europe and Japan.

The market for archiving is strong, and Mimosa trails companies such as Zantaz, of Pleasanton, which said it has sales exceeding $100 million last year (there’s a good story about email archiving in the Merc, which includes a look at Zantaz).

Mimosa’s funding, reported by VentureWire today (sub required), included Mayfield Fund, which led the round, and existing investors Clearstone Venture Partners, August Capital and JAFCO Ventures.

The four year old company has already raised $17 million over two rounds. August Capital and Clearstone participated in all three rounds. Dot Edu Ventures also participated in the company’s $6.5 million first round, VentureWire said.