True Ventures co-founder Jon Callaghan doesn’t suppose we’ll be utilizing smartphones the best way we do now in 5 years — and perhaps by no means in 10.
For a enterprise capitalist whose agency has had some large winners over its 20 years – from shopper manufacturers like Fitbit, Ring, and Peloton, to enterprise software program makers HashiCorp and Duo Safety – that’s greater than armchair theorizing; it’s a thesis on which True Ventures is actively betting.
True hasn’t gotten this far by following the gang. The Bay Space agency has largely operated beneath the radar regardless of managing roughly $6 billion throughout 12 core seed funds and 4 “choose,” opportunity-style funds that it has used to pour extra capital into portfolio corporations which can be gaining momentum. Whereas different VCs have grown extra promotional – constructing private manufacturers on social media and podcasts to draw founders and deal move – True has gone in the wrong way, quietly cultivating a good community of repeat founders. The technique appears to be working: in line with Callaghan, the agency boasts 63 exits with good points and 7 IPOs amid a portfolio of some 300 corporations assembled over its 20-year historical past.
Three of True’s 4 latest exits within the fourth quarter of 2025 concerned repeat founders who got here again to work with the agency once more after earlier successes, says Callaghan. Nonetheless, it’s Callaghan’s fascinated by the way forward for human-computer interplay that basically stands out in a sea of AI hype and mega-rounds.
“We’re not going to be utilizing iPhones in 10 years,” Callaghan says flatly. “I type of don’t suppose we’ll be utilizing them in 5 years – or let’s say one thing totally different that’s somewhat safer – we’re going to be utilizing them in very other ways.”
His argument is easy: our telephones are awful at being the interface between people and intelligence. “The best way we take them out proper now to ship a textual content to substantiate this or ship you some message or write an e-mail – [that’s] tremendous inefficient, [and] not an amazing interface,” he explains. “[They’re] liable to error, liable to disruption [of] our regular lives.”
So positive is he of this that True has been spending years exploring different interfaces – software-based, hardware-based, the whole lot in between. It’s the identical intuition that led True to wager early on Fitbit earlier than wearables had been apparent, to put money into Peloton after tons of of different VCs mentioned ‘no thanks,’ and to again Ring when founder Jamie Siminoff stored working out of cash and even the judges on “Shark Tank” turned him away. Every time, the wager regarded questionable, says Callaghan. Every time, the wager was on a brand new manner for people to work together with expertise that felt extra pure than what got here earlier than.
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The most recent manifestation of this thesis is Sandbar, a {hardware} system that Callaghan describes as a “thought companion” — or, in additional mundane phrases, a voice-activated ring worn on the index finger. Its singular objective: capturing and organizing your ideas by way of voice notes. It’s not making an attempt to be one other Humane AI Pin or compete with Oura’s well being monitoring. “It does one factor rather well,” Callaghan says. “However that one factor is a basic human behavioral want that’s lacking from expertise right now.”
The thought isn’t to passively file ambient audio however to be there when an thought strikes, serving as a type of thought accomplice. It’s connected to an app, leverages AI, and, in line with Callaghan, represents a really totally different philosophy about how we must always work together with intelligence.
What drew True to Sandbar founders Mina Fahmi and Kirak Hong wasn’t simply the product, although. “Once we met Mina, we had been simply completely aligned on imaginative and prescient,” Callaghan remembers. True’s workforce had already been considering for years about different interfaces, making focused investments round that chance. They’d met with dozens of founders, because of this. However the strategy of Fahmi and Hong – who beforehand labored collectively on neural interfaces at CTRL-Labs, a startup acquired by Meta in 2019 – stood out. “It’s about what [the ring] permits. It’s concerning the conduct it permits that we’ll very quickly understand we are able to’t dwell with out.”
There’s an echo right here of Callaghan’s previous line about Peloton: “It’s not concerning the bike.” To some, the bike – even its earliest iteration – was compelling. However Peloton was actually concerning the conduct it enabled and the group it created; the bike was simply the vessel.
This philosophy of betting on new behaviors — not simply new devices — additionally explains how True has managed to remain disciplined about capital. Whilst AI startups elevate tons of of thousands and thousands at billion-dollar valuations out of the gate, True insists that it’s capable of follow what it does greatest, which is to put in writing seed checks of $3 million to $6 million for 15% to twenty% possession in startups that it usually will get to see first.
Callaghan says True will elevate extra money to fund what’s working, however he’s not inquisitive about elevating billions of {dollars}. “Like, why? You don’t want that to construct one thing wonderful right now.”
That very same measured strategy colours his view of the broader AI increase. Whereas he says (when requested) that he believes OpenAI may quickly be price a trillion {dollars}, and whereas he calls this essentially the most highly effective compute wave we’ve seen, Callaghan sees warning indicators within the round financing offers backing hyperscalers and their $5 trillion in projected CapEx spending on knowledge facilities and chips. “We’re in a really capital intense a part of the cycle, and that’s worrisome,” he notes.
That mentioned, he’s optimistic about the place the actual alternatives lie. Callaghan thinks the best worth creation is forward of us – not within the infrastructure layer however within the utility layer, the place new interfaces will allow completely new behaviors.
All of it comes again to his core investing philosophy, which sounds nearly romantic — the type of pitch-perfect VC knowledge that may ring hole from most individuals: “It ought to be scary and lonely and you ought to be known as loopy,” Callaghan says about early-stage investing executed proper. “And it ought to be actually blurry and ambiguous, however you ought to be with a workforce that you just actually consider in.” 5 to 10 years later, he says, you’ll know should you had been on to one thing.
Both manner, primarily based on True’s monitor file of betting on {hardware} that many others missed – health trackers, related bikes, sensible doorbells, and now thought-capturing rings – it’s price paying consideration when Callaghan says the telephone’s days are numbered. Being early is the entire level — and the pattern traces assist his thesis: the smartphone market is successfully saturated, rising at barely 2% yearly, whereas wearables — smartwatches, rings, and voice-enabled gadgets — are increasing at double-digit charges.
One thing’s shifting in how we need to work together with expertise, and True is inserting its bets accordingly.
Pictured above, Sandbar’s Stream ring. For way more from our dialog with Callaghan, tune in to the StrictlyVC Download podcast subsequent week; new episodes drop each Tuesday.
