Jon Callaghan, the co-founder of True Ventures, believes that in five to ten years, smartphones as we know them will be obsolete. True Ventures has a strong track record, investing in companies like Fitbit, Ring, and Peloton, but their forward-thinking strategy sets them apart.
While many venture capital firms focus on marketing and social media to attract investors and founders, True Ventures prefers to build close relationships with a select group of entrepreneurs. This approach has led to impressive results: True has recorded 63 successful exits and seven IPOs from a portfolio of around 300 companies over the past two decades.
Callaghan argues that smartphones are an inefficient interface between humans and technology. “They’re prone to errors and disruptions,” he says. Instead, True Ventures is continuously exploring alternatives, whether they involve new software or hardware.
One recent example is Sandbar, an innovative device designed to capture and organize your thoughts through voice notes. Callaghan refers to it as a “thought companion.” Unlike fitness trackers or smart home devices, Sandbar focuses on helping people express their ideas more easily.
The founders of Sandbar, Mina Fahmi and Kirak Hong, previously worked on neural interfaces at CTRL-Labs, acquired by Meta. Their vision aligned perfectly with True Ventures, which has been interested in alternative interfaces for years.
Callaghan’s philosophy emphasizes investing in behaviors, not just gadgets. For example, Peloton isn’t just about stationary bikes; it’s about the community and lifestyle it fosters. This principle also guides True Ventures’ careful approach to capital. They aim to invest smartly, typically writing checks of $3 million to $6 million in early-stage companies, without getting lost in the hype of massive funding rounds.
While Callaghan sees significant potential in AI, he also notes risks associated with the substantial investments flowing into infrastructure. Instead, he believes real opportunities lie in the application layer where new interfaces will enable innovative behaviors.
A concerning trend is the stagnation in the smartphone market, which is growing at just 2% annually, while wearables and voice-enabled devices are seeing double-digit growth. This shift indicates that our interactions with technology are changing, and True Ventures plans to leverage that change as it unfolds.
With Callaghan’s track record and the ongoing evolution of technology, it’s clear that the way we communicate with devices is on the brink of transformation. True Ventures is poised to be at the forefront of this shift.
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