David Dobrik’s podcast has lost sponsors like Honey and HelloFresh

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David Dobrik speaks onstage during Nickelodeon’s Kids’ Choice Awards on March 13, 2021.

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David Dobrik’s troubled startup Dispo didn’t get the full $20 million from its Series A round – and now $8 million of that is ‘on pause’

David Dobrik
Dispo cofounder David Dobrik.

  • Some $8 million of Dispo’s recent Series A round is now “on pause,” a source tells Insider.
  • Last week, Insider reported that a former member of cofounder David Dobrik’s Vlog Squad was accused of rape.
  • In response, Spark Capital and several other investors cut ties with the company.
  • See more stories on Insider’s business page.

Dispo has lost favor with investors, and now some of its funding may be at stake.

Just last month the camera-app startup cofounded by YouTube star David Dobrik had one of the hottest funding rounds in Silicon Valley, a $20 million Series A round led by Spark Capital that valued the company at $200 million. But Spark severed ties with the startup after a former member of Dobrik’s YouTube Vlog Squad was accused of rape, as reported in an investigation last week by Insider’s Kat Tenbarge.

And then other investors began distancing themselves.

As it turns out, $8 million of that funding hasn’t yet landed in the bank, and that amount is now “on pause,” a source familiar with the situation tells Business Insider.

An SEC filing from Tuesday shows that Dispo has received about $16.1 million in funding. That amount includes $4.1 million in converted SAFEs, a type of funding structure that gives investors shares after the company has raised additional funds from, for instance, a seed round.

The remaining $8 million, which accounts for the rest of Dispo’s Series A round, is listed as “remaining to be sold.” The source told Insider that investors have not abandoned the deal and that Dispo doesn’t expect its $200 million valuation to change.

Spark’s portion of the funding was about $12 million, Axios’ Dan Primack reported, and it had closed, but other investors, who have not yet cut their checks, could still seek to renegotiate Dispo’s valuation. It’s not clear which investors may be seeking to do this, but Dispo has a handful of prominent investors, many of whom have not yet publicly commented on the controversy.

Spark declined to comment, while Seven Seven Six and Unshackled did not respond to inquiries from Insider.

Since Spark cut ties with Dispo, the company has announced that Dobrik has stepped down from its board. Two of the company’s investors, Seven Seven Six and Unshackled Ventures, have said they would donate any returns from their investment in the startup to organizations working with survivors of sexual assault. Another investor, Lime CEO Wayne Ting, said he would not invest in any of the company’s future funding rounds.

Read the original article on Business Insider

Venture capital firm Spark Capital says it’s severing ties with David Dobrik’s new photo app Dispo

David Dobrik
The move comes following accusations that a member of Dobrik’s vlog squad sexually assaulted a woman.

  • Venture capital firm Spark Capital said it was severing ties with Dispo, a photo-sharing app co-created by YouTuber David Dobrik.
  • Last week Insider released an investigation into Dobrik’s “Vlog Squad.”
  • One of its members has been accused of rape by a woman who appeared in a video about group sex.
  • See more stories on Insider’s business page.

Dispo, the photo-sharing app co-created by YouTuber David Dobrik, is in trouble after venture capital company Spark Capital decided to sever ties with the company.

On Sunday evening, the company tweeted: “In light of recent news about the Vlog Squad and David Dobrik, the cofounder of Dispo, we have made the decision to sever all ties with the company. We have stepped down from our position on the board and we are in the process of making arrangements to ensure we do not profit from our recent investment in Dispo.”

Dispo had raised around $20 million during a Series A funding round led by Spark Capital. Early on, it had a valuation of around $200 million.

Last week, Insider’s Kat Tenbarge released an explosive investigation into allegations from a woman who said Dom Duerte, a member of Dobrik’s “Vlog Squad,” sexually assaulted her while filming a video about group sex.

Since then, several key sponsors of Dobrik’s YouTube channel have cut ties with him, including DoorDash, EA Sports, and Dollar Shave Club.

Dobrik, along with Daniel Liss, and Natalie Mariduena, created the photo-sharing app in a bid to mimic the experience of non-digital photos. Users must wait several hours until their digital images “develop” and can be shared.

In February, a New York Times profile of the app referred to it as “the next Instagram.”

Insider has reached out to Spark Capital and Dispo for comment.

Read the original article on Business Insider