Late Sunday evening, investment firm Spark Capital announced it was severing ties with David Dobrik’s photo-sharing startup Dispo in response to an Insider report about a woman who says she was raped by a member of Dobrik’s Vlog Squad while filming a video with the creator collective in 2018.
Spark led a reported $20 million Series A funding round for Dispo in February that has yet to be formally announced, valuing Dobrik’s nascent company at a staggering $200 million. The other participants in Dispo’s Series A have not been announced.
“In light of recent news about the Vlog Squad and David Dobrik, the co-founder of Dispo, we have made the decision to sever all ties with the company,” Spark Capital tweeted yesterday. “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.”
Hours later, Dobrik stepped down from Dispo’s board and left the company, The Information was first to report.
“David has chosen to step down from the board and leave the company to not distract from the company’s growth,” Dispo told the outlet in a statement. “Dispo’s team, product, and most importantly — our community — stand for building a diverse, inclusive, and empowering world.”
In addition to disturbing investors, the controversy also roiled prospective Dispo users. The New York Times also notes that in the wake of the Insider report, Dispo’s app store rating plummeted below two stars last week, and Apple briefly paused the ability to leave reviews.
Last October, Dispo also raised a $4 million seed round led by Reddit co-founder Alexis Ohanian’s Seven Seven Six with participation from Unshackled Ventures, Shrug Capital, Weekend Fund, members of the Vlog Squad, Latin World Entertainment’s Sofia Vergara and Luis Balaguer, The Chainsmokers, Roivant CEO Vivek Ramaswamy, Lime CEO Wayne Ting, Knowable CEO Warren Shaeffer, Brud CEO Trevor McFedries, Pizzaslime co-founders Matt Hwang and Stove, and Seatgeek‘s senior director of influencer channels Ian Borthwick.
Visit Tubefilter for more great stories.