Dispo Secures Series A Funding Despite Controversy

Dispo's Journey: From Rebrand to Recovery

Just nine months ago, Dispo underwent a rebranding from its initial name, David’s Disposable. However, the photo-sharing application, inspired by vintage aesthetics, has navigated a period marked by significant fluctuations, largely stemming from associations with its original figurehead, YouTuber David Dobrik.

Initial Hype and Subsequent Allegations

Similar to the rise of Clubhouse, Dispo quickly gained traction as a highly anticipated new social platform, initially accessible only through invitations from current users.

On March 9th, when the waitlist was removed and the app became available to all iOS users, Dispo appeared well-positioned to challenge established photo-sharing giants like Instagram.

However, within a week, Business Insider published reports detailing sexual assault allegations against a member of Vlog Squad, the YouTube collective led by Dispo co-founder David Dobrik. A previously released vlog from Dobrik, concerning the night of the alleged incident, included a remark about potential imprisonment.

Leadership Changes and Company Response

Following venture capital firm Spark Capital’s decision to completely disassociate from Dispo, Dobrik resigned from his position on the company’s board.

In a statement provided to TechCrunch, Dispo affirmed its commitment to “building a diverse, inclusive and empowering world” through its team, product, and community.

Nostalgia and the App's Core Concept

Dispo appeals to the nostalgic sentiments of Gen Z and younger millennials, evoking a time when instant digital photography wasn't prevalent.

The app's unique feature requires users to wait until 9 AM the following day for their photos to “develop,” delaying immediate viewing and sharing.

Global Reach and Market Performance

In February and March, the application achieved a top 10 ranking within the Photo & Video category on the U.S. App Store.

Despite the negative attention surrounding Dobrik, which led to a surge of critical comments on the app’s product page, Dispo also secured a top 10 position in Germany, Japan, and Brazil, as indicated in their press release. Notably, the company has not yet invested in international marketing initiatives.

Investor Commitment to Social Responsibility

Early Dispo investors, including Spark Capital, Seven Seven Six, and Unshackled, have pledged to donate any profits from their investment to organizations supporting survivors of sexual assault.

While Axios initially reported the app’s $20 million Series A funding in February, Dispo officially confirmed the financing today. Seven Seven Six and Unshackled Ventures are still listed as investors, but Spark Capital is no longer included.

Notable Individuals Involved

The project also benefits from the involvement of prominent figures in the photography world, such as Annie Leibovitz and Raven B. Varona, who has collaborated with artists like Beyoncé and Jay-Z.

Additionally, actresses Cara Delevingne and Sofía Vergara, alongside NBA stars Kevin Durant and Andre Iguodala, are connected to the app as investors or advisors.

Focus on Team and Future Development

Dobrik’s primary contribution to the company was in the realm of marketing, while CEO Daniel Liss co-founded the app and has consistently led the team.

Following Dobrik’s departure, the Dispo team, currently comprising fewer than 20 members, paused communications and product updates. With the confirmation of funding, updates are anticipated to resume.

Strategic Goals and Expansion Plans

Dispo emphasizes the talent and diversity within its team, describing them as “some of the most talented, diverse leaders in consumer tech.”

The funding will be used to expand the team, enhance competitiveness with larger social media platforms like Instagram and TikTok, and explore the potential of machine learning. A renewed marketing strategy will also be necessary, given the failure of their previous influencer-based approach.

Positioning as a Mental Health Resource

Dispo is increasingly promoting the app as a tool for improving mental well-being, aiming to counteract the pressures of manufactured perfectionism often found on social media.

A Vision for the Future

“A new era of startups must emerge to end the scourge of big tech’s destruction of our political fabric and willful ignorance of its impact on body dysmorphia and mental health,” CEO Daniel Liss articulated in a Substack post titled Dispo 2.0. “Imagine a world where Dispo is the social network of choice for every teen and college student in the world. How different a world would that be?”

Challenges and Historical Context

However, given the app’s initial success was largely fueled by the popularity of a YouTuber with a controversial past, this messaging may not resonate with all audiences.

According to Sensor Tower, Dispo, when known as David’s Disposable, achieved its highest ranking in the U.S. App Store’s Photo & Video category in January 2020, holding the No. 1 position from January 7th to January 9th, and reaching No. 1 overall among free iPhone apps on January 8th.