Wattpad Story: How Allen and Eva Lau Built a Startup Success
- Sam Hajighasem
- May 6
- 5 min read
Every great company has a story. For Wattpad—now one of the world’s leading storytelling platforms with over 94 million users—that story begins with two resilient dreamers, Allen and Eva Lau. Their journey from facing early rejection and near-failure to building a global digital fiction empire is nothing short of inspirational. This is the definitive Wattpad story, a raw look at startup success born of perseverance, curiosity, and unwavering belief.
Who Are Allen and Eva Lau, the Founders Behind Wattpad?
Eva and Allen Lau are more than just business founders—they’re visionary tech entrepreneurs who turned a simple idea into a cultural movement. Allen Lau, a veteran in the Canadian tech scene, co-founded Wattpad in 2006 along with Ivan Yuen. Eva Lau, originally skeptical, later joined the mission and played an essential role in growing the platform. Today, both are partners at Two Small Fish Ventures, an early-stage venture capital firm helping other startup founders succeed.
How Did Wattpad Get Started? The Founding Story
The Wattpad founding story begins in an era not known for mobile storytelling. In fact, when Allen first shared his idea, Eva’s reaction was, "Why would people want to read on a flip phone?" It was 2006—before the rise of smartphones.
Despite skepticism, Allen and Ivan Yuen remained committed to the vision: democratizing reading and writing by enabling users to share stories directly from their mobile devices. “We sat down together, reflected together, and crafted a game plan,” said Eva. Slowly, conviction turned into shared purpose. This alignment marked the early days of Wattpad’s journey.
What Challenges Did Wattpad Founders Face Early On?
Lack of Traction and Audience
The early phase of Wattpad was marked by silence—literally. Although a few hundred users tried the app, no one contributed content for almost two years. “There was a point where we almost pulled the plug,” Allen revealed. “We were deflated, feeling like nothing was working.”
Lean Budgets & Optionality
Their hosting cost was just $5 a month—a small cost that paradoxically became the reason they didn’t quit. “We thought, what’s the worst-case scenario? Lose another $5 next month?” That mindset became their secret weapon. By embracing optionality—the ability to pivot or wait for better conditions—they persevered through those early hurdles.
What Sparked Wattpad’s Startup Success?
Finding Product-Market Fit
Product-market fit didn’t happen overnight. It required continuous user feedback, small product tweaks, and relentless curiosity. As engagement grew, so did confidence. Eventually, the first stories were uploaded, and the flywheel started turning. The founders' obsession with user experience was key.
Social Storytelling That Went Global
Wattpad’s unique spin on user-generated content (UGC) gave it staying power. It wasn’t just a reading platform—it was a social community where readers and writers could interact. This led to the rise of Wattpad Originals and even blockbuster book deals and Netflix adaptations stemming from Wattpad uploads.
The Importance of Curiosity in the Entrepreneur Journey
According to Allen and Eva Lau, curiosity isn’t just a personality trait—it’s critical to startup success. “Curiosity helps you generate luck,” said Allen. Rather than seeing failure as a full stop, they viewed every challenge as a data point.
That passion for learning also drives their work at Two Small Fish Ventures. They encourage entrepreneurs to explore different angles, ask hard questions, and not shy away from criticism.
How Did Wattpad Become a Success Story in Venture Capital and Tech?
After scaling Wattpad, Allen and Eva didn’t step away from innovation. Instead, they launched Two Small Fish Ventures, focused on guiding the next generation of startup founders.
Mentorship and Coaching for Disruptors
Their approach combines capital with mentorship, especially for founders in B2C tech and community-driven platforms. The couple is known for investing in companies that show grit, adaptability, and mission clarity.
Qualities They Look for in Startup Founders
According to Eva, standout founders aren't afraid of feedback. They’re resilient in the face of early rejection and are obsessed with improving their ideas. Allen echoes this, explaining that the best founders balance vision with adaptability.
Allen Lau’s Leadership Legacy and Role at WEBTOON
In 2022, Allen Lau transitioned from CEO to Executive Advisor following Wattpad’s acquisition by Naver. In this new role, he advises both Wattpad and WEBTOON, shaping the future of digital fiction.
Under his leadership, Wattpad achieved staggering success:
- Over 1 billion uploads
- More than 94 million global users
- A platform launchpad for literary and film talent
He now extends his influence as a board member at TIFF and MaRS Discovery District, promoting innovation across Canada’s startup ecosystem.
What Can Founders Learn From the Wattpad Story?
1. Embrace Optionality
Prepare for pivots. Have backup plans and embrace flexibility. Allen and Eva’s journey proves that adaptability is a survival skill in the startup world.
2. Share Risks Openly
One reason Eva joined the Wattpad team was Allen’s transparency—he laid out the risks and invited her to be part of the decision-making process. Founders should do the same with their investors, teams, and families.
3. Be Curious and User-Obsessed
Don’t chase revenue blindly. Focus on understanding your users. The Wattpad success story shows that true traction takes root when user needs come first.
4. Ignore the Naysayers—but Learn From Them
Wattpad’s toughest critic early on was someone inside—the co-founder’s spouse. Yet today, that conversation became one of their greatest case studies on turning doubt into belief.
FAQs About Wattpad and Its Founders
Who Founded Wattpad?
Wattpad was co-founded by Allen Lau and Ivan Yuen in 2006. Eva Lau later joined and played a crucial role in shaping the company's early growth.
When Was Wattpad Launched?
Wattpad launched in 2006, initially focused on delivering content to mobile readers via flip phones.
What Is Allen Lau’s Role Today?
Allen Lau now serves as Executive Advisor to WEBTOON and Wattpad and remains active in tech governance through his roles at TIFF and MaRS.
What Is Two Small Fish Ventures?
Two Small Fish Ventures is an early-stage venture capital firm co-founded by Eva and Allen Lau. Their mission is to support tech disruptors through capital, coaching, and community.
What Makes a Startup Founder Successful?
According to the Laus, perseverance, a growth mindset, curiosity, and an ability to handle and apply criticism are key traits of successful founders.
Conclusion:
The Wattpad story isn’t just about digital storytelling—it’s about human resilience, innovation, and the relentless curiosity of two founders who believed in their vision. Allen and Eva Lau turned a failing platform into a global literary and entertainment powerhouse. Today, they continue to inspire and invest in new startup founders through Two Small Fish Ventures. Their journey is a powerful testament to the idea that success doesn’t happen overnight—but with the right mindset, it’s always possible.
If you're seeking inspiration to fuel your own entrepreneur journey, the lessons from Allen and Eva Lau are a great place to start. Their Wattpad story is more than a business case study—it’s a blueprint for lasting startup success.
From storytelling to startup success, we support founders who are ready to grow with intentional content—book a call to see how we can help share your story with the right audience.
