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.

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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.