Markets That Work
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Markets That Work
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Arco doesn't build MVPs because it only enters markets where demand is already proven. This episode delivers the method behind that claim.
The primary filter is the Human-to-Logic Ratio: when human labour accounts for more than 60% of a market's gross margin, the incumbent's cost structure becomes the arbitrage. This episode defines that threshold, explains the four secondary signals that confirm a market worth building into, and shows why the structural advantage compounds every quarter as compute costs fall and human costs don't.
Concepts introduced: Human-to-Logic Ratio, Operational Arbitrage, Arco's T-Tier Framework
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Linked memo: arcoventure.studio/blog/markets-that-work
Arco Lexicon: arcoventure.studio/lexicon
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