Smartphone Obsolescence? VC Bets on a New Way to Think
Venture Capital
AI
Smartphones
Wearables
Hardware
True Ventures
Sandbar
8
Future-Proofing
Media Hype
6/10
Real Impact
8/10
What is the Viqus Verdict?
We evaluate each news story based on its real impact versus its media hype to offer a clear and objective perspective.
AI Analysis:
While AI hype is currently at a fever pitch, Callaghan’s grounded assessment and focus on fundamental human needs offers a more realistic long-term perspective, and his focus on tangible behaviors rather than just ‘smart’ gadgets suggests a strategic advantage that’s likely to yield significant returns over time.
Article Summary
Jon Callaghan, co-founder of True Ventures, is making a bold prediction: the ubiquitous smartphone is on its way out. After two decades of backing disruptive startups like Fitbit, Peloton, and Ring, Callaghan is now betting that our current reliance on smartphones is a fundamentally flawed interface for interacting with intelligence. True Ventures’ strategy has historically been about identifying unaddressed human needs rather than chasing the latest tech trend. Callaghan’s assessment comes as the smartphone market reaches saturation, growing at a meager 2% annually, while wearable technology – including rings and voice-enabled devices – is experiencing double-digit growth. True has cultivated a tight network of repeat founders, often bypassing the hype surrounding large VC firms. The firm’s approach, exemplified by its investment in the Sandbar ring, centers on enabling entirely new behaviors, rather than simply offering new gadgets. This investment in the Sandbar ring – a voice-activated device designed to capture and organize thoughts – reflects a deeper philosophy: it’s not about the ring itself, but the behavior it enables. True’s disciplined approach to capital, characterized by smaller seed checks and a focus on identifying early-stage opportunities, aligns with Callaghan’s skepticism about the current capital-intensive AI boom. While acknowledging the potential of companies like OpenAI, Callaghan expresses concern about the massive investments being made in data center infrastructure. Ultimately, True Ventures’ strategy hinges on a timeless VC principle: identifying and backing disruptive innovations that address unmet human needs, a philosophy that could prove prescient as the tech landscape shifts.Key Points
- Callaghan believes smartphones will become obsolete within 5-10 years, driven by a fundamental shift in how people interact with technology.
- True Ventures’ strategy has always been about identifying unmet human needs, exemplified by investments in wearable technology like Fitbit and Peloton.
- The firm’s disciplined approach to capital – focusing on smaller seed investments – is a counterpoint to the massive valuations being given to AI startups.