Chumby Industries, makers of the Wi-Fi video and widget displaying device, the Chumby, have just announced $12.5 million in Series B funding today. The company notes that this new financing is going to be used to “accelerate growth of the company, and expand and broaden the Chumby Network to other screen-based Internet connected devices.”

The lead investor was JK&B Capital, and other participants included existing venture investors, Avalon Ventures, Masthead Venture Partners and O’Reilly AlphaTech Ventures.

The Chumby is based on a 266MHz Freescale i.MX21 processor, and is equipped with 32MB of 133MHz SDRAM, and 64MB of NAND flash memory. The high-quality (TFT) QVGA (320×240) LCD display features LED backlighting controlled via PWM (pulse-width modulation).