Smartphones May Soon Be Obsolete: True Ventures’ Jon Callaghan Makes Bold Predictions
In a surprising statement, True Ventures co-founder Jon Callaghan has predicted that smartphones as we know them may soon be a thing of the past. Over the next five to ten years, he believes our methods of using these devices will dramatically change, if not disappear entirely.
True Ventures: A Different Approach to Venture Capital
True Ventures, a firm known for its strategic bets in technology and consumer brands like Fitbit and Peloton, has managed around $6 billion across multiple funds. Unlike other venture capitalists who focus on building personal brands through social media, True Ventures has built a strong relationship with recurring founders. According to Callaghan, the firm has achieved 63 successful exits and seven IPOs within a portfolio of approximately 300 companies over 20 years.
The Future of Human-Computer Interaction
Callaghan’s forecast about smartphones isn’t just idle speculation. He believes current smartphones are inefficient interfaces for human interaction with technology. “We’re not going to be using iPhones in 10 years,” he said. He argues that our phones are clunky and often disrupt our daily lives, making communication tedious.
In response to these challenges, True Ventures has been researching alternative interfaces—ranging from software to hardware. This exploration reflects their history of backing innovations that challenge conventional technology norms, evidenced by their early investments in wearables like Fitbit and smart home products like Ring.
The Launch of Sandbar: A New Kind of Device
One of the latest products coming from this venture is Sandbar—a voice-activated ring designed to help users capture and organize their thoughts. Unlike other tech solutions, Sandbar focuses on a singular, fundamental human need: the ability to seize ideas on the go.
Callaghan describes Sandbar as a “thought companion,” aimed at enhancing thought capture rather than simply recording ambient noise. It utilizes an app and integrates Artificial Intelligence to facilitate a more seamless interaction with intelligence.
The Vision Behind Sandbar
What intrigued True Ventures about Sandbar’s founders, Mina Fahmi and Kirak Hong, was their aligned vision for how humans should interact with technology. Previously working on neural interfaces at CTRL-Labs, acquired by Meta in 2019, their focus on enabling specific behaviors through technology resonated with Callaghan’s philosophy.
Callaghan emphasizes that the device is not just about the ring itself but about the behavioral changes it encourages. He likens this philosophy to Peloton’s success, asserting that it’s not merely about the bike, but about the community and lifestyle it fosters.
Capital Discipline and Future Opportunities
True Ventures’ disciplined approach to investment capital sets it apart in a landscape where AI startups are rapidly raising significant funds. Callaghan insists that True continues to thrive by maintaining its focus on early-stage investments, typically writing checks ranging from $3 million to $6 million for 15% to 20% ownership in startups.
Despite recognizing the monumental potential of companies like OpenAI, Callaghan is cautious about the current state of funding in the technology sector. He sees considerable risks in the heavy capital commitments pouring into infrastructure with a projected $5 trillion in spending on data centers and chips.
Conclusion: The Shift in Technology Interaction
While many view the smartphone market as a mature and saturated arena with minimal growth, Callaghan envisions a shift in how we interact with technology. The rise of wearables like smartwatches and voice-enabled devices reflect a growing trend toward more natural interfaces. As True Ventures continues to place its bets accordingly, it’s clear that the future of technology interaction is evolving, and soon, our smartphones may not play the pivotal role they do today.
For further insights into our conversation with Jon Callaghan, listen to the StrictlyVC Download podcast where new episodes are released every Tuesday.
