Jonathan Abrams developed Friendster in 2002, which became a popular social networking site with over 50 million members worldwide. Friendster was able to raise $14 million in venture capital from investors like former Yahoo CEO Tim Koogle. As one of the first social networking sites, it pioneered features like profiles, friend connections, and status updates. However, Friendster also had disadvantages like difficulties finding friends and dealing with spam. Overall, it provided a learning experience for Abrams and helped pioneer the social media industry.