Jack Selby, a longtime managing director at Thiel Capital, is proving that the next generation of billion-dollar startups may not come from Silicon Valley alone. Through deep connections in Arizona, Selby has quietly built early positions in fast-growing companies, including AI chip startup Etched, as investors increasingly look beyond traditional technology hubs.
For decades, Silicon Valley has dominated the venture capital landscape, attracting founders, investors and breakthrough technology companies from around the world. Jack Selby believes the next wave of innovation may emerge somewhere else. The longtime Thiel Capital managing director has quietly established himself as one of Arizona’s most influential venture investors, using an expanding network of entrepreneurs, universities and local business leaders to identify promising startups before they reach the mainstream venture capital spotlight. According to TechCrunch, Selby’s Arizona connections have helped him secure stakes in several fast-growing companies, including Etched, the artificial intelligence chip startup that recently announced TSMC had successfully manufactured its first processor earlier this year. The company, already valued at about $5 billion, is preparing to ship its first systems to customers later this summer. Rather than competing directly with Silicon Valley’s largest venture firms, Selby has spent years cultivating relationships across Arizona’s growing technology ecosystem. His investment strategy reflects a broader shift taking place across venture capital. Rising startup costs, increased competition and a growing number of regional innovation hubs have encouraged investors to search for promising companies outside California. States including Arizona, Texas, Florida and Colorado have become increasingly attractive destinations for entrepreneurs seeking lower operating costs while maintaining access to engineering talent and investment capital. Selby’s growing influence extends beyond his role at Thiel Capital. In 2022, he launched AZ-VC, previously known as InvisionAZ Fund, with the goal of supporting Arizona’s startup ecosystem. Rather than relying on Peter Thiel’s network to raise capital, Selby intentionally turned to Arizona-based investors, believing the state’s startup community needed local backing to thrive. That approach appears to be paying off. Arizona has emerged as one of America’s fastest-growing semiconductor and advanced manufacturing hubs. Major investments by companies including TSMC, Intel and Amkor Technology have strengthened the state’s role in the global technology supply chain while attracting startups focused on artificial intelligence, chips, defence technology and advanced manufacturing. See Also: Adobe Deepens AI Push with WPP, Accenture, Omnicom and Stagwell to Bring Agentic AI into Enterprise Marketing Selby’s regional network has given him early access to entrepreneurs building companies in these sectors, allowing him to spot promising opportunities before many larger venture firms. One of the most notable examples is Etched. The startup is developing specialised processors designed specifically for transformer-based AI models. Unlike traditional graphics processing units that handle a wide range of computing tasks, Etched’s chips are engineered to execute AI workloads more efficiently, potentially offering significant performance gains for businesses deploying large language models. The company recently reached an important milestone after TSMC completed production of its first AI chip. With commercial shipments expected later this year, investors are closely watching whether Etched can challenge established players in one of the technology industry’s fastest-growing markets. Selby’s investment philosophy reflects a belief that geography is becoming less important than access to exceptional founders and specialised industries. Artificial intelligence, semiconductor manufacturing and defence technology increasingly depend on partnerships with research universities, manufacturing facilities and government institutions. Many of those resources are no longer concentrated solely in Silicon Valley. Industry observers say the venture capital landscape has been steadily changing since the pandemic. Remote work, distributed engineering teams and lower operating costs have encouraged startups to establish themselves in emerging technology centres across the United States. Investors have followed, recognising that some of the most attractive opportunities now exist beyond California’s traditional startup ecosystem. Selby’s own career has prepared him for that shift. Before joining Peter Thiel, he was an early member of PayPal, making him part of the influential group of entrepreneurs widely known as the PayPal Mafia. Members of that network have gone on to build or invest in companies including SpaceX, Palantir, LinkedIn and YouTube, shaping much of today’s technology industry. Now, Selby is applying those lessons to Arizona’s expanding innovation economy. His growing portfolio suggests that world-class startups no longer need a Silicon Valley address to attract serious investors or compete globally. As artificial intelligence, advanced manufacturing and semiconductor innovation continue reshaping the global economy, regional technology ecosystems are becoming increasingly important sources of new ideas and investment opportunities. Jack Selby’s strategy highlights a broader transformation taking place across venture capital. The next billion-dollar AI company may still emerge from Silicon Valley. Increasingly, however, it could just as easily be founded in Phoenix, backed by local relationships, regional expertise and investors who recognise that innovation is no longer confined to one corner of the technology world.
About the Author
Marcel Chidozie is a tech analyst and writer covering foreign news, fintech, and emerging technologies at TechRegard. Based in Nigeria, He's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. His work focuses on how technology shapes innovation across Africa and globally.
