Reviving the Classics: What Comes Next After the Rise and Fall of Phones?
True Ventures co-founder Jon Callaghan envisions a dramatic shift in our relationship with technology over the next decade. He confidently predicts that smartphones, as we know them, may not only be used differently in five years but could potentially become obsolete in ten. This bold perspective is not mere speculation; it’s a foundational belief that shapes the investments True Ventures is making today.
A Unique Approach to Venture Capital
For a firm that has celebrated remarkable successes—including household names like Fitbit, Ring, and Peloton—True Ventures has taken an unconventional path. With approximately $4 billion in assets under management across 12 funds, including both core and opportunity-style offerings, True has opted for a more understated approach compared to its more promotional peers.
While many venture capitalists are busy building their brands online to attract startups, True fosters robust relationships within a close-knit network of repeat founders. Callaghan proudly notes that the firm has seen 63 exits and seven IPOs from its portfolio of around 300 companies during its two-decade journey. Three of the firm’s recent exits in late 2025 involved founders who returned to the firm after prior successes, further highlighting the value of their enduring partnerships.
Rethinking Human-Computer Interaction
What truly sets Callaghan apart is his forward-thinking approach to human-computer interaction amidst the noise of current AI hype. He makes a compelling argument: smartphones, as they exist today, are inefficient tools for navigating the complexities of digital communication.
“We’re not going to be using iPhones in ten years,” Callaghan states decisively. “In five years, we’ll be using them in very different ways.”
His critique centers around the limitations of smartphones as a primary interface for communication. They disrupt our daily lives and introduce errors—something he believes we can overcome with better alternatives.
Investing in the Future
True Ventures is committed to exploring alternative interfaces, ranging from software to hardware, to facilitate smoother interactions with technology. The firm’s history of backing innovative ideas—like investing in Fitbit before wearables became mainstream—demonstrates an instinct for identifying emerging needs.
The latest embodiment of this vision is Sandbar, a unique hardware device that Callaghan terms a “thought companion.” This voice-activated ring, which you wear on your index finger, focuses solely on capturing and organizing your thoughts through voice notes. Unlike other products vying for your attention, this device excels at addressing a fundamental human need often overlooked by existing technology.
The Philosophy Behind Sandbar
Callaghan emphasizes that the goal of Sandbar isn’t to passively record audio but to capture those fleeting moments of inspiration—be it ideas or pieces of gossip—that might otherwise be lost. The companion app integrates AI, reflecting a profound shift in our relationship with technology and intelligence.
What drew True to Sandbar’s founders, Mina Fahmi and Kirak Hong, was their shared vision and innovative approach. Their previous work on neural interfaces, coupled with their collaborative spirit, positioned them as ideal partners for this venture.
“It’s about what [the ring] enables,” Callaghan explains. “What we’ll soon realize we can’t live without.”
The Bigger Picture: Behavior over Gadgets
Callaghan’s philosophy resonates with his previous insights on companies like Peloton: “It’s not about the bike.” While the bike captured attention, the true value lay in fostering community and enabling new behaviors. This focus on behavior rather than just gadgets guides True’s investment strategy, allowing them to remain disciplined even in an market awash with inflated valuations.
As the landscape around AI evolves, Callaghan remains cautiously optimistic. Though he recognizes the potential for companies like OpenAI to become industry giants, he warns of the pitfalls associated with hyper-capitalized companies operating under intense financial pressure.
A Bright Future in Behavior-Driven Tech
Ultimately, Callaghan believes the real breakthroughs will happen not at the infrastructure level but in how we apply new technologies in ways that encourage unprecedented behaviors.
He sums up his investment philosophy with a touch of romanticism: “It should be scary and lonely, and you should be called crazy.” Partnering with a passionate team and navigating the uncertainties of early-stage investing is what fuels his approach.
Based on True Ventures’ track record with innovations—ranging from smart appliances to thought-capturing rings—it would be wise to heed Callaghan’s predictions about the future of smartphones. The market for them is plateauing, growing at a mere 2% annually, whereas the wearables sector is thriving with double-digit growth.
As we stand on the cusp of a new technological era, it’s clear that the way we engage with devices is evolving, and True Ventures is deftly positioning itself for the shift.
For those intrigued by where technology is headed and eager to learn more about innovative ways to enhance our lives, join us in exploring new frontiers. The journey toward a more seamless interaction with technology is just beginning—let’s embrace it together!
