Jack Selby, a former PayPal executive and long-time managing director at Peter Thiel’s family office, Thiel Capital, is making significant inroads into the US tech investment landscape through his Phoenix-based venture capital firm, Copper Sky Capital. The firm, established in 2021 and formerly known as AZ-VC, is reportedly in the process of raising a substantial second fund of £235 million, according to recent regulatory filings. This capital injection is expected to broaden Copper Sky's investment scope, moving beyond its initial focus on Arizona and the Southwest to encompass a wider range of US-based startups, including those in higher-priced coastal tech hubs.
Copper Sky Capital has already demonstrated its strategic approach through key investments, notably in the four-year-old chip design startup Etched. Two years ago, the VC firm participated in Etched's £94 million Series A funding round. A significant factor in securing this allocation, for what is now a £3.9 billion valued company, was Selby's pledge to assist Etched in potentially relocating its chip fabrication to Arizona. This move aligns with Selby's broader vision of bridging the gap between coastal tech innovation and Arizona's burgeoning manufacturing capabilities.
Etched recently announced a major milestone, with its first chip having been manufactured by TSMC earlier this year. The startup is preparing to ship systems powered by this new chip to customers later in the summer of 2026. However, scaling production could present challenges, as Etched, like other chip designers, must compete for limited capacity at TSMC’s factories in Taiwan. Copper Sky Capital remains optimistic that Etched will eventually overcome these manufacturing constraints by utilising TSMC’s facility in Arizona.
Selby’s deep involvement in Arizona’s economic development plays a crucial role in his firm’s investment strategy. As a board member of the Arizona Commerce Authority, he is actively engaged in attracting out-of-state businesses to establish manufacturing operations within the region. This connectivity to the local semiconductor industry, particularly the TSMC GIGAFAB in Arizona, was a key differentiator when Copper Sky invested in Etched, a startup that is otherwise difficult for new investors to access.
While Copper Sky Capital initially focused on what Selby perceived as undervalued startups in Arizona and the Southwest compared to their coastal counterparts, the firm's expanded focus will now include backing hardware companies, including those in the defence sector, that are willing to establish manufacturing operations in Arizona. This strategic shift underscores a growing trend in the US to reshore critical manufacturing capabilities, particularly in the semiconductor and defence industries, to enhance supply chain resilience and national security.