True Ventures Co-Founder Predicts the Future of Smartphones

Introduction

Jon Callaghan, co-founder of True Ventures, forecasts a dramatic shift in the way we interact with smartphones, suggesting they may not be used in the same capacity in five years—and perhaps altogether in ten. With a track record of successful investments in companies like Fitbit, Ring, and Peloton, Callaghan’s insights are far from casual speculation; they form a foundational thesis driving True Ventures’ investment strategy.

True Ventures’ Unique Investment Approach

True Ventures stands out in the crowded venture capital landscape, managing approximately $6 billion across twelve seed funds and four selective opportunity funds. Unlike many of its peers who focus on building personal brands through social media and podcasts, True has cultivated a discreet, yet robust network of repeat founders. This strategy has proven successful; the firm has recorded 63 profitable exits and seven IPOs throughout its two-decade history, backed by a diverse portfolio of around 300 companies.

Successful Exits and Repeat Founders

Three of True’s four recent exits in Q4 2025 involved founders returning to the firm after previous achievements. Callaghan believes that this pattern demonstrates the efficacy of his approach in recognizing and nurturing talent within the startup ecosystem.

The Shift in Human-Computer Interaction

Callaghan’s vision of the future centers on radical changes in our interaction with technology. He posits that current smartphones serve as ineffective interfaces, emphasizing that the process of sending texts or emails is cumbersome and prone to errors. “The way we take them out right now… is super inefficient,” he explains.

Exploring Alternative Interfaces

To address this inefficiency, True Ventures has been actively exploring innovative interfaces—both software and hardware. Historical investments in companies like Fitbit and Peloton showcase the firm’s knack for identifying transformative technologies early, even when the risks appear high.

Callaghan’s conviction led to backing Ring, despite initial skepticism from both investors and public reception. Each of these investments represents a shift toward more user-friendly forms of technology that enhance human interaction rather than complicate it.

Enter Sandbar: The New Wave of Wearable Tech

The latest manifestation of Callaghan’s philosophy is Sandbar, a voice-activated ring designed to capture and organize thoughts through voice notes. Unlike other devices, Sandbar isn’t merely an attempt to replicate existing technology; it aims to fulfill a fundamental human need that has yet to be adequately addressed by current offerings.

A Thought Companion

This innovative hardware serves as a “thought companion,” designed to assist users when inspiration strikes. Integrated with an app and leveraging AI, Sandbar represents a paradigm shift in human-computer interaction.

Callaghan is particularly drawn to the vision of Sandbar’s founders, Mina Fahmi and Kirak Hong, who previously worked on neural interfaces at CTRL-Labs. Their alignment with True Ventures’ long-term view on alternative interfaces made them a perfect match.

Investing in New Behaviors

Callaghan’s investment philosophy is underscored by a commitment to enabling new behaviors rather than merely embracing new gadgets. This approach allows True Ventures to remain disciplined with capital. While other venture capital firms chase multi-billion-dollar funding rounds, True focuses on writing seed checks of $3 million to $6 million for 15% to 20% equity in startups.

Resisting the Temptation of Excess Capital

Callaghan emphasizes that raising excessive funds isn’t necessary for building impactful technology. This careful financial strategy enables True to nurture nascent ideas while sidestepping the pitfalls of a saturated market.

Callaghan’s Perspective on the AI Boom

Although Callaghan predicts that OpenAI may soon reach a trillion-dollar valuation and acknowledges the current “powerful compute wave,” he expresses caution regarding circular financing deals and market volatility. With hyperscalers projected to spend $5 trillion on data centers and chips, he perceives a growing risk associated with this capital-intensive phase.

The Future of Value Creation

Yet in this environment, Callaghan remains optimistic about opportunities that lie ahead. He believes that the most significant value creation will occur not at the infrastructure level but at the application level, where new interfaces can foster entirely new behaviors.

The Core Philosophy of Early-Stage Investing

Callaghan’s investing ethos resembles a romantic ideal: “It should be scary and lonely and you should be called crazy,” he states regarding the risks associated with early-stage investing. “But you should be with a team that you really believe in.” He argues that if you execute well, the clarity of your vision will come into focus five to ten years later.

The Future of Smartphones and Market Trends

Based on True Ventures’ history of investing in overlooked hardware—fitness trackers, connected bikes, smart doorbells, and now thought-capturing rings—Callaghan’s predictions about the declining role of smartphones should be taken seriously. The smartphone market is nearing saturation with a modest annual growth rate of 2%, whereas wearables like smartwatches and voice-enabled devices are seeing significant double-digit growth.

A Changing Paradigm

This evolving landscape highlights a shift in consumer expectations regarding technology interactions. Rather than simply objecifying gadgets, people are seeking tools that enhance their productivity and well-being.

Conclusion

As Callaghan and True Ventures navigate the dynamic landscape of technology and human-computer interaction, their focus on nurturing innovative products like Sandbar underscores the promise of what lies ahead. With significant shifts underway, it seems that smartphones, as we know them, are on borrowed time. True’s commitment to placing strategic bets on emerging technologies makes them a firm to watch in the years to come.

For more insights and discussions about Callaghan’s vision, tune in to the StrictlyVC Download podcast, with new episodes releasing every Tuesday.

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Emmanuel Kesse

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