Graphic by K8 Strassman

What you can learn from the momentum of Dispo

The latest craze among young digital contrarians is Dispo, the “anti-Instagram” photo sharing app that surged in momentum because of early interest by Gen Z and venture capital investors. The concept of “anti-apps” is hot now. We saw this with momentum for Clubhouse, the “anti-podcast”.

Invite-only “anti-apps” like Dispo are becoming popular among Gen Z because of this generation’s desire to disrupt previous generations and do things their own way. These digital natives grew up with their face in a phone and are enamored with the idea of disconnecting (without completely disconnecting) from the pressures of social media.

Dispo is the brainchild of Gen Z influencer-star David Dobrik. He noticed how obsessed his friends were with disposable cameras and had the insight to digitize the experience and bring it to an app.

Why did Dispo surge from an MFactor of 5 to 19 in just 1 month?

• Single-focus: just for taking & posting pictures. No add ons (like live streaming, video making, sharing “stories”, messaging, etc) to compete with competitors like Twitter, Instagram, Facebook, Snapchat and Spotify.
• Anti-Instagram: capture memories without the pressure of editing, captioning or posting in the moment… delayed gratification of only being able to see the photo at 9AM the next day lets you relive last night’s snaps
• Exclusivity: Invite-only during soft launch / beta-phase
• Celebrity partnership: Co-founded by polarizing influencer David Dobrik. Now associated with Alexis Ohanian and his fund Seven Seven Six.
• Phantom nostalgia: Positioned around Gen Z’s love for the simplicity of a pre-social media time they never lived through — the 90’s

The Takeaway

Dispo’s rapid expansion and quick rise to the #4 most downloaded app on Apple’s AppStore made it an appealing target for VC firms, but the immaturity of its Gen Z co-founder & the crew he surrounds himself with also makes it a cautionary tale — it was nearly canceled.

What happened? Dispo went under fire in March because another member of David Dorbik’s friend group — the Vlog Squad — was accused of sexual assault. In response to the incident, most Dispo investors pulled out and David Dobrik stepped down from the company.

“David has chosen to step down from the board and leave the company to not distract from the company’s growth,” Dispo said in a statement to several media outlets. “Dispo’s team, product, and most importantly — our community — stand for building a diverse, inclusive, and empowering world.”

Why do we believe there’s potential for Dispo to regain momentum? Alexis Ohanian’s fund Seven Seven Six decided to remain in support of the app because they still believe in the mission of the app and want to support those bringing it to life. They pledged to donate any profits they earn from the app to organizations that support sexual assault survivors — a clear example of leaning into polarization and using it as a force for good.

The Decode

Disruption: “Anti-apps” let Gen Z contrarians “unplug” and go against the grain without completely cutting the social media cord.

Why do consumers like Dispo? Because it is opposite of Instagram in every way while still keeping them connected to friends.

1. Back to basics: It is minimalist & focused on 1 core function: taking disposable-style photos through the app. It does not offer more functions or great innovations compared to Instagram. There are no additional features to the app like going Live, adding stories, creating videos or reels, sending direct messages, etc. For a photo sharing app, it is completely “back to basics.” Dispo also does not allow ads on the platform (yet), which creates a more simple, user-friendly app. Allows for users to use the app as it is made: to take pictures. We saw this in the early days of TikTok, which now is filled with ads and branded content.
2. No way to “overthink” it: Consumers see Dispo as “refreshing” in contrast to other social media. They like that it doesn’t actively encourage Instagram-like behavior such as agonizing over filters and captions. You cannot edit, caption or post the photo in the moment. This allows for users to focus on the photos they take, and not on taking the time to decide on a caption or picking out the perfect filter.
3. Keeps users in the moment: “You never looked at the picture, you never checked the lighting,” Dobrik said of using disposables. “You just went on with your day, and in the morning you got to relive it.” Gives a sense of spontaneity to keep you in the moment because you take a picture and then you can’t see it or post it until 9am the next day.

Innovation: Dispo started off in its beta-phase as an invite-only membership, just like Clubhouse, creating FOMO and an urgency to try and join the “club.”

Innovation requires constant evolution. Our question for Dispo: How will it evolve and maintain engagement without getting stuck in the trap of becoming commercialized & having too many features?

“Instagram turned everyone into general photographers. Dispo makes you a photographer with a purpose. That is where the construction of the community is: everyone seeks the same thing through their own lens.”

Will Dispo solely rely on the community it creates to help drive its evolution? Or will they start introducing new features and ways to use the app?

Polarization: Having a major influencer as the face of your brand can backfire if he falls flat on his face

Having David Dorbik as the face & co-founder of the brand was intentionally polarizing to start — signals the app is for a specific audience. Dobrik was initially the perfect person to partner with — He has a very engaged and loyal Gen Z following. Over the last 2 years, his influence has been recognized and leveraged by major brands from Tesla, EA Sports and SeatGeek to HelloFresh, DoorDash and Dollar Shave Club.

Now, the association with David Dobrik is controversial because of inappropriate behavior by a member of his Vlog Squad. In an effort to salvage Dispo’s reputation & growth, Dorbik stepped down from Dispo.

There was a clear divide in how investors handled they news and took a stand against sexual assault:

• Spark Capital announced it would “sever all ties” with Dispo. Two of the app’s earliest investors have similarly backed away from the company.
• Seven Seven Six (Alexis Ohanian’s fund) and Unshackled followed suit, releasing subsequent statements that they plan to donate any potential profits from investments to organizations working with survivors of sexual assault.

“We have made the decision to donate any profits from our investment in Dispo to an organization working with survivors of sexual assault. We have believed in Dispo’s mission since the beginning and will continue to support the hardworking team bringing it to life,” according to the firm’s (Seven Seven Six) statement. Ohanian has retweeted the statement from his personal account but has offered no separate statement.

Stickiness: Dispo is intentionally nostalgic. It is appealing to digital natives that have “phantom” nostalgia for the 90’s, a simpler (pre-social media) time they never knew.

• Tate McRae, Gen Z singer / songwriter of “I wish I loved you in the 90’s”, uses her song to address why she is nostalgic for the 90’s. She says she is confident that she’s not the only teen that feels this nostalgia for an era without social media, which is why the main goal of her songwriting is to make other teenagers feel heard & less alone in their social media-inundated, hectic lives.

Social Impact: An antidote to cancel culture can be to course correct by giving back.

Donating the app’s profits to organizations working with survivors of sexual assault shows that the app and the VC funds still supporting it are in it for a greater purpose.

On the DOWN: David Dobrik.