Proto-Town: A Billionaire-Backed Texas Development for Hardware Startups
Introduction
Proto-Town, a 1,200-acre campus in Lockhart, Texas, has become a community designed for technology entrepreneurs focused on hardware development. The project, valued at approximately $100 million, is supported by investors including venture capitalist Josh Kushner, hedge-fund manager Bill Ackman, and Coinbase co-founder Fred Ehrsam. It currently hosts 12 companies working in fields such as autonomous construction, drone manufacturing, and nuclear energy.
Main Body
The initiative was created by Duke University alumni Josh Farahzad (age 26) and Merle Nye (age 28), who had previous startup experience. They partnered with John Cyruer, a longtime Texas politician, to launch Proto-Town in 2024 with initial funding under $100,000. The project’s first fundraising round raised $20 million from Ackman, Kushner, and Ehrsam, leading to a valuation of $100 million. The founders claimed that the failure of Lockhart to secure a $100 billion Micron semiconductor facility in 2022 was a key reason for their vision of building a city. Furthermore, the co-founders described the environment as a 'man-campus' with a 'frat-house atmosphere' – meaning a social, informal setting focused on continuous project work rather than recreational activities. Residents live in a single ranch-style home and surrounding trailers, sharing meals and spending leisure time riding dirt bikes or visiting nearby Austin. Prospective companies undergo a selection process similar to a college fraternity rush, living and working on-site for several days before acceptance. Early-stage startups pay only for room and board, whereas established firms, including a Samsung semiconductor facility, lease land for product testing. Companies operating within Proto-Town include Bedrock Robotics, founded by former Waymo engineers, which develops autonomous construction machinery such as excavators that operate without human control. Dynamo, led by Ethan Blagg, is building large drones capable of lifting heavy materials like generators and telecom towers. Terran Robotics, founded by Daniel Weddle, tests equipment such as a robotic hammer for compacting dirt into adobe homes. Oklo, a nuclear technology firm, has started construction of a test reactor intended to produce isotopes for cancer therapy and manufacturing, with a planned operational date in July. The company’s CEO, Jake Dewitte, described the timeline as comparable to the Manhattan Project in speed. The founders have articulated a philosophy that contrasts with Silicon Valley’s perceived restrictiveness and expense. Farahzad stated that Proto-Town is apolitical and aims to revive 'timeless virtues that made America really dynamic.' Nye argued that the availability of testing grounds, housing, and manufacturing facilities reduces business launch stress and filters for individuals committed to product development. The founders expressed admiration for China’s manufacturing capabilities and aspire to create an 'American Shenzhen,' referencing the Chinese city’s rapid transformation from a fishing village to a global hardware hub. However, early development faced challenges, including resistance from the Caldwell County judge and the need for founders to live in a scorpion-infested ranch house. In August, an agreement with Caldwell County established minimal building regulations in exchange for exemption from future rules, providing a regulatory framework for the site.
Conclusion
Proto-Town currently houses 12 companies and has achieved a $100 million valuation following its initial fundraising. The development continues to attract hardware-focused startups and established firms, with the founders aiming to replicate the rapid growth trajectory of Shenzhen as a concentrated technology ecosystem.