Jack Selby, the former PayPal executive and managing director at Thiel Capital, is successfully tapping into Arizona’s growing semiconductor ecosystem to secure exclusive stakes in high-profile startups like Etched. Through his Phoenix-based firm, Copper Sky Capital, Selby is positioning the state as a strategic manufacturing hub, promising to help hardware companies transition their production to local facilities, including TSMC’s Arizona plant.
Bridging the Gap Between Coastal Startups and Arizona Manufacturing
Copper Sky Capital, founded by Selby in 2021 as AZ-VC, initially focused its $115 million debut fund on the Southwest. Selby’s core investment thesis was that coastal startups in California, Massachusetts, and New York were significantly overvalued compared to emerging talent in his region. However, he quickly identified a strategic opportunity: assisting hardware-focused companies based in California in relocating their production lines to Arizona.
When Copper Sky participated in Etched’s $120 million Series A round two years ago, Selby’s ability to guarantee a pathway for reshoring chip fabrication to Arizona was instrumental in securing the allocation.
Leveraging Influence for Exclusive Access
Selby attributes his success in accessing highly sought-after startups like Etched to his deep integration into the Arizona economy. As a board member of the Arizona Commerce Authority, he plays a pivotal role in recruiting out-of-state enterprises to establish manufacturing footprints within the region.
“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 told TechCrunch.
Future Expansion and Defense Sector Ambitions
While Copper Sky has begun scouting for opportunities beyond the Southwest, including nontraditional venture hubs across the United States, its commitment to hardware remains central. Selby noted that the firm is actively seeking to back hardware companies—particularly those in the defense sector—that align with Arizona’s manufacturing capabilities.
The firm is currently preparing to scale its operations significantly. According to a recent regulatory filing, Copper Sky is in the process of raising a $300 million second fund, which will provide the necessary capital to target higher-priced coastal startups and nationwide ventures.
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