Early Platform Arbitrage

A strategy for capitalizing on new platforms in their early days when high-quality users are most active and engagement opportunities are highest.

Key Principles of Early Platform Arbitrage

• Focus on first 90 days of platform launch
• Target platforms started by influential Silicon Valley figures
• Capitalize when interesting people are most active and engaged
• Take advantage of low competition in early days

Why It Works

• High-quality early users
  • Usually friends of platform founders
  • Most interesting/influential people join first
  • Creates unique networking opportunities
• Limited competition
  • Fewer total users on platform
  • Easier to stand out and gain traction
  • Higher chance of meaningful interactions

Real World Example: Clubhouse

• Early days had concentrated high-quality users
• Created unique opportunities for early adopters
• Success story shared:
  • Friend named Jason was advised to focus full-time on Clubhouse
  • Spent 10 hours per day on platform
  • Results in 90 days:
    • Raised $4M crypto fund
    • Made several million dollars
    • Built lasting relationships
    • Created ongoing opportunities

Current Application: Air Chat

• New platform by Naval Ravikant
• Currently in early adoption phase
• Characteristics:
  • Voice-first Twitter alternative
  • Auto-transcribes voice to text
  • Speeds up playback 1.3x
• Strategy:
  • Going "all in" for first 7 days
  • Ignoring other platforms temporarily
  • Maximizing engagement while high-quality users are active

Key Takeaway

• Early platform arbitrage is about recognizing and capitalizing on the unique window when:
  • High-value users are most active
  • Competition is lowest
  • Opportunities for meaningful connections are highest
  • Potential for outsized returns exists