Peter Thiel’s Money Manager Hunts ‘Next PayPal’ for His Own Firm

Jack Selby was one of PayPal Holdings Inc.’s first employees and, after the payments company was sold, started hedge fund Clarium Capital Management with Peter Thiel.

He later helped manage Thiel Capital, the billionaire’s family office. Now Selby is branching out with his own investment fund focused on technology companies in Arizona, where he spent part of his youth and returned to after EBay Inc. bought PayPal for $1.5 billion two decades ago.

His Phoenix-based AZ-VC has allocated money to a handful of companies this year after raising $110 million for its debut fund from mostly local investors, with ...