Source : Webster's Revised Unabridged Dictionary (1913)

Funk \Funk\, v. i.
   1. To emit an offensive smell; to stink.

   2. To be frightened, and shrink back; to flinch; as, to funk
      at the edge of a precipice. [Colloq.] --C. Kingsley.

   {To funk out}, to back out in a cowardly fashion. [Colloq.]

            To funk right out o' political strife. --Lowell
                                                  (Biglow
                                                  Papers).