Katarzyna Petru
Co-founder of True Ventures Jon Callaghan believes that in five years we won't be using smartphones in their current form, and in ten they may completely disappear from our daily lives. This is not a provocative thesis for a podcast clip, but a real investment direction that the fund is putting money into.
True Ventures is not one of the most media-savvy funds in Silicon Valley. However, over its 20 years of operation, the firm has built an impressive portfolio – from consumer brands like Fitbit, Ring, and Peloton, to enterprise companies like HashiCorp and Duo Security. In total, True currently manages around AUD 6 billion across 12 seed funds and four select funds, aimed at further financing portfolio companies that are gaining momentum.
The effects of this strategy are tangible. According to Callaghan, True has recorded 63 successful exits and seven IPOs, and its portfolio includes around 300 companies. Importantly, the fund increasingly collaborates with the same founders again. Three of True's four exits in the fourth quarter of 2025 involved founders who returned after previous successes.
Smartphone as a Poor Interface
What is most interesting are not the numbers, but Callaghan's way of thinking about the future of the human-technology relationship. In his opinion, the smartphone is a poor interface between people and intelligence. – The way we now pull out our phone to reply to a message, confirm a meeting, or write an email is incredibly inefficient. It’s an interface prone to errors and constantly disrupting the rhythm of life – he explains.
Therefore, Callaghan doesn't directly say that the iPhone will disappear in five years, but he is convinced that we will use it in a completely different way. And in the perspective of a decade – perhaps not at all. This belief has led True to explore alternative interfaces for years: hardware, software, and hybrid. Just like before with Fitbit, Peloton, or Ring, it's not about the gadget itself, but a new, more natural way of interacting with technology.
Ring instead of a phone
The latest example of this thesis is Sandbar – a device that Callaghan describes as a "thought companion." In practice, it's a voice-controlled ring worn on the index finger. Its only task is to quickly capture and organise thoughts in the form of voice notes. Sandbar doesn't try to be another AI Pin nor compete with smart rings that monitor health. – This device does one thing really well. And that one thing meets a fundamental need that today’s technology does not fulfill – says Callaghan.
It's not about passively recording the environment, but about the moment when an idea arises. The ring is meant to be always at hand, ready to "talk" to the user. The whole system works in conjunction with an app and AI, but the key is the philosophy – interaction with intelligence is intended to be less invasive and more natural. Behind Sandbar are Mina Fahmi and Kirak Hong, who were previously associated with CTRL-Labs, a company developing neural interfaces, which Meta acquired in 2019. It was the consistency of the founders' vision with True's long-term thinking that was crucial for the investment.
– This is not a story about a ring. It’s a story about the behaviour that this ring enables and without which we soon won’t want to live – emphasises Callaghan.
Not a gadget, but behaviour
This approach resembles the narrative that Callaghan built around Peloton years ago. “It's not about the bike,” he would repeat. The bike was merely a vehicle for a new model of training and community. Similarly, the next interfaces after the smartphone are expected to follow suit. This focus on behaviours, rather than the devices themselves, allows True to maintain capital discipline. The fund continues to concentrate on seed rounds – typically between 3 to 6 million dollars for 15–20 per cent equity – instead of chasing billion-dollar valuations for AI at an early stage.
– Why raise billions when you don't need to do it today to build something truly groundbreaking – says Callaghan.
Careful Optimism Towards AI
Although Callaghan acknowledges that OpenAI may soon reach a valuation of up to a trillion dollars, he views the AI boom with a degree of unease. He points out the enormous, reaching $5 trillion in investments by hyperscalers in data centres and computing architectures. – We are in a very capital-intensive phase of the cycle, and that is a cause for concern – he assesses. At the same time, he believes that the greatest value is yet to emerge – not in the infrastructure layer, but in applications and new interfaces that will enable entirely new ways of using technology.
Phone on the way out?
In the end, Callaghan returns to the investment philosophy that True has been using for years. – If you’re doing it right, it should be a bit scary, lonely, and you should hear that you’re crazy. Everything is then fuzzy and ambiguous, but you’re working with a team you truly believe in – he says. Five or ten years later, it will become clear whether that was a sound intuition.
Considering the history of True Ventures and their sense of timing with devices that changed everyday habits, it pays to take these words seriously. Especially since market data seems to confirm them – the smartphone market is practically saturated and is growing at about 2 percent per year, while wearables – watches, rings, and voice devices – are seeing double-digit growth. Something is changing in the way we want to interact with technology. And True is already putting its money on that.
