Social media widget-maker mEgo has picked up $2.5 million in a second round of funding from private investors. The LA-based startup develops widgets that let social network members integrate avatars, photos and other media into their profiles, and has raised a total of $5.5 million since its inception in 2005. mEgo currently runs on Facebook, MySpace, Hi5 and others, and says it cracked the one million registered user mark.

It will use the new money to launch an iPhone app and integrate with additional networks and IM services. The company also plans to develop a virtual world around its avatars, like Donnerwood Media’s Meez did last June. Like Meez, mEgo’s widgets and avatars serve as ad vehicles; Adidas ran a campaign featuring rapper Missy Elliot on the service last year. 

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