Spark Capital Cuts Ties with David Dobrik's Dispo App

Spark Capital Cuts Ties with Dispo Amidst Allegations

Spark Capital, a prominent venture capital firm, has announced the complete termination of its relationship with Dispo, a photo-sharing application. This decision follows allegations brought to light by a recent Business Insider investigation.

Allegations and Initial Response

The investigation detailed claims made by a woman concerning a sexual assault allegedly committed by a member of David Dobrik’s Vlog Squad. These allegations prompted immediate action from Spark Capital.

The firm communicated its decision via Twitter, stating they would “sever all ties” with Dispo. They have relinquished their board position and are actively working to avoid any financial gain from their investment.

Further Investor Action

Update: Additional early-stage investors, including Unshackled Ventures and Seven Seven Six, have also withdrawn their support from Dispo.

Both firms have pledged to donate any profits derived from their investments to organizations dedicated to supporting survivors of sexual assault.

Dobrik Steps Down

Following Spark Capital’s announcement, David Dobrik himself resigned from Dispo’s board of directors. This information was initially reported by The Information.

Dispo's Statement

Dispo released a statement to TechCrunch, explaining that Dobrik’s departure was a voluntary act. The intention is to prevent any distraction from the company’s ongoing development and expansion.

The statement further emphasized Dispo’s commitment to fostering a “diverse, inclusive and empowering world” for its team, users, and community.

Dispo maintains that its core values center around building a positive and supportive environment.

A Shift in Venture Capital Regarding Dispo

Spark Capital’s move to reassess its investment in Dispo represents an unusual occurrence within the venture capital landscape. Instances of this nature are uncommon, and this action may prompt similar responses from other investors holding equity in the company.

Just under a month ago, Spark Capital spearheaded a Series A funding round for Dispo, a $20 million investment that established the company’s valuation at $200 million. Currently, Spark’s official statement does not suggest a withdrawal of funds from Dispo.

Requests for clarification regarding the specifics of this process – whether shares will be repurchased by the company or transferred to a different entity – have not yet received a response from Spark Capital. The firm’s recent leadership role in the funding round may have afforded it greater flexibility in reconsidering its position.

Several other sponsors associated with David Dobrik, notably HelloFresh and Dollar Shave Club, have already terminated their collaborative agreements with the content creator.

Dispo has also seen David Dobrik step down from his position within the company.

Note: This article has been updated to include information regarding Dobrik’s resignation from Dispo, as well as the withdrawal of investment from other initial backers of the application.