Hangout.net is a virtual environment that has fully customizable rooms, avatars, etc.  The company makes it possible for MySpace users to create custom virtual rooms.  Highland Capital Partners and Polaris Venture Partners has extended their Series A investment by an additional $4 million in Hangout.net.

The total funding that Hangout has raised is now about $10 million.  The company’s seed funding is $1 million and the initial Series A financing was $5 million.  The $4 million extension gave Hangout enough backing to last them a long time.  The company confirmed the funding in an SEC document.  Hangout is based in Boston, Massachusetts and is led by CEO Pano Anthos.

[via NEVC Funding]