Thiel Capital’s Jack Selby nabs stakes in hot startups like Etched through Arizona connections

Published 2 July 2026 · tech

Nvidia competitor Etched announced this week that TSMC had manufactured its first chip earlier this year. While the four-year-old startup valued at $5 billion is

Nvidia competitor Etched announced this week that TSMC had manufactured its first chip earlier this year. While the four-year-old startup valued at $5 billion is getting ready to ship systems powered by that chip to customers later this summer, scaling production may prove challenging. Like other chip designers, Etched must compete for limited capacity at TSMC’s Taiwan factories. Copper Sky Capital, one of Etched 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.

Selby, a former PayPal exec and longtime managing director to Peter Thiel’s family office, Thiel Capital, founded Phoeni based Copper Sky in 2021 (formerly known as AZ-VC). The firm’s first $115 million fund focused primarily on startups based in Arizona and the Southwest. Selby’s thesis was that most coastal startups, particularly those based in California, Massachusetts, and New York, are grossly overpriced compared to companies popping up in his region. However, Selby saw an opportunity to bridge the gap in the other direction by helping California-based hardware startups move their production to Arizona.

Selby credits Copper Sky’s investment in Etched — an otherwise hard-to-access startup — to his influential role in Arizona’s economy. As a board member of the Arizona Commerce Authority, Selby is deeply involved in recruiting out-of-state businesses to set up manufacturing operations in 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. While Copper Sky has recently expanded its focus beyond the Southwest to include non-traditional venture hubs nationwide, Selby said that the firm is also interested in backing hardware companies, including in the defense sector, that can set up manufacturing operations in Arizona.

The firm is expected to soon have more capital to invest in those higher-priced coastal companies, and those throughout the United States. Copper Sky is currently raising a $300 million second fund, according to a regulatory filing.