Arizona Connections Pay Off for Thiel Capital's Jack Selby

Jack Selby, a former PayPal executive and managing director of Peter Thiel's family office, Thiel Capital, has secured stakes in hot startups like Etched through his connections in Arizona.

Etched, a four-year-old startup valued at $5 billion, announced this week that TSMC had manufactured its first chip earlier this year. The company is now preparing to ship systems powered by that chip to customers later this summer. However, scaling production may prove challenging, as Etched must compete for limited capacity at TSMC's Taiwan factories.

The Role of Copper Sky Capital

Copper Sky Capital, one of Etched's early investors, is hopeful that the chip maker will find a solution to its manufacturing constraints by eventually producing chips at Arizona's TSMC facility. When the four-year-old VC firm invested in Etched's $120 million Series A two years ago, founder Jack Selby secured an allocation in part by promising to help the startup eventually reshore its chip fabrication to Arizona.

"When Copper Sky invested with Etched, the company clearly understood our connectivity to the Arizona semiconductor industry, and in particular the local TSMC GIGAFAB," Selby said.

• Copper Sky's investment in Etched was made possible by Selby's influential role in Arizona's economy.
• The firm is expected to soon have more capital to invest in higher-priced coastal companies, and those throughout the United States, with a $300 million second fund in the works.
• Selby sees an opportunity to bridge the gap between coastal startups and Arizona's manufacturing capabilities, and is interested in backing hardware companies that can set up operations in the state.

Expansion and Future Plans

Copper Sky has recently expanded its focus beyond the Southwest to include non-traditional venture hubs nationwide. The firm is also interested in backing hardware companies, including in the defense sector, that can set up manufacturing operations in Arizona. With its new fund, Copper Sky will have more capital to invest in startups like Etched, and help them scale their production and reach new customers.