Veteran investor says the era of smartphones may be nearing an end

True Ventures co-founder Jon Callaghan says smartphones will not be used the same way within five years and may disappear entirely within a decade because of other AI devices.

The view is more than speculation for True Ventures. The firm is actively investing around the idea that new interfaces will replace the phone as the primary way people interact with technology.

True has built a portfolio over 20 years that includes consumer brands such as Fitbit, Ring, and Peloton, as well as enterprise software companies HashiCorp and Duo Security.

The firm manages about $4 billion across 12 funds and has recorded 63 exits with gains and seven IPOs from roughly 300 investments. Callaghan says repeat founders account for several recent exits.

Callaghan argues that smartphones are inefficient as an interface between humans and intelligence. He says typing messages and emails disrupts daily life and introduces friction and errors.

True has spent years exploring alternatives, ranging from software to hardware. Callaghan says the firm has often invested early in products that enabled new behaviors before they became mainstream.

The latest example is Sandbar, a voice-activated ring worn on the index finger. The device is designed to capture and organize spoken thoughts through short voice notes.

Callaghan describes the product as a “thought companion.” He says it is not intended to track health or record ambient audio, but to capture ideas at the moment they occur.

Sandbar is led by founders Mina Fahmi and Kirak Hong, who previously worked together at CTRL-Labs before its acquisition by Meta in 2019.

True continues to focus on seed investments, typically writing checks of $3 million to $6 million. Callaghan says the firm does not plan to raise capital beyond what is needed.

He views the current AI cycle as capital intensive, even as companies like OpenAI grow rapidly. Callaghan says the greatest opportunities will emerge at the application layer, where new interfaces can enable new behaviors.

He says early-stage investing should feel uncertain and isolating, with conviction forming only years later.