Wattpad Success Story: How Allen Lau Built a Storytelling Empire
- Sam Hajighasem
- Apr 3
- 3 min read
Wattpad's journey from a small startup to a global storytelling platform is a remarkable success story. Founded by Allen Lau and Ivan Yuen, Wattpad revolutionized how stories are created, shared, and adapted for entertainment. This Wattpad success story highlights the challenges, decisions, and perseverance that turned an ambitious idea into a thriving content platform.
How Was Wattpad Founded?
The idea for Wattpad was conceived in 2006, long before smartphones became mainstream. Allen Lau and Ivan Yuen envisioned a platform where writers could share stories freely. However, their vision faced skepticism, even from Lau’s wife, Eva, who questioned why people would want to read on small mobile screens. Despite these doubts, Lau and Yuen remained committed to their idea, laying the foundation for what would soon become a global storytelling empire.
Early Challenges and the Importance of Perseverance
For its first two years, Wattpad struggled to gain traction. Despite launching the platform, there were barely any users. Lau recalls feeling disheartened with only a few hundred readers and no writers. At one point, they considered shutting down the platform. However, realizing that their hosting costs were only $5 a month—an expense they could afford—they decided to continue. This perseverance paid off as Wattpad slowly began attracting writers and readers, eventually achieving product-market fit.
From Startup to Storytelling Powerhouse
Wattpad’s transition from a simple online storytelling website to a content powerhouse was driven by multiple key strategies.
Leveraging User-Generated Content for Growth
A turning point for Wattpad was empowering writers to freely share their stories, creating an engaged community. Unlike traditional publishing, Wattpad removed barriers, offering aspiring storytellers an accessible platform. This user-generated content model fueled the platform’s exponential growth, attracting millions of writers and readers worldwide.
Adapting to Industry Trends and Building Partnerships
As Wattpad grew, it became evident that the platform was more than just a storytelling site—it was a powerful content discovery engine. The company partnered with major entertainment studios like Netflix and Hulu, leveraging its data-driven storytelling insights to bring Wattpad stories to television and film. With millions of stories and vast reader engagement data, Wattpad became a gold mine for entertainment adaptations.
What Leadership Lessons Can Entrepreneurs Learn from Allen Lau?
Allen Lau’s entrepreneurial journey is filled with valuable lessons for aspiring founders.
Transitioning from Founder to CEO
During Wattpad’s early years, Lau's role was primarily product-focused. However, as the company scaled, he had to evolve from a hands-on entrepreneur to a leader managing a growing team. He followed the ‘3 and 10’ rule, recognizing that every time a company’s headcount triples, existing processes break, requiring constant adaptation and strategic leadership.
Importance of Vision and Purpose
Initially, Wattpad was just a digital reading app, but over time, Lau realized they were democratizing storytelling. This clarity in vision helped Wattpad attract investors and partners who aligned with their mission. Having a clear purpose is crucial for any entrepreneur looking to scale their business effectively.
Overcoming Naysayers and Embracing Optionality
Lau’s journey also sheds light on handling skepticism. Eva Lau, a skeptic at the start, eventually joined the company after seeing Lau’s conviction. He advises entrepreneurs facing naysayers to be transparent, articulate their vision clearly, and embrace optionality—creating alternative paths to success rather than relying on a single approach.
Wattpad’s Acquisition and Allen Lau’s Next Chapter
In 2021, Wattpad was acquired by South Korean tech giant Naver in a deal valued at over $600 million. This major exit validated Wattpad’s influence in the global storytelling ecosystem. After the acquisition, Allen and Eva Lau transitioned to their next venture: Two Small Fish Ventures, an early-stage venture capital firm investing in disruptive tech startups.
Advice for Modern Entrepreneurs
Allen Lau emphasizes resilience and adaptability as critical entrepreneurial traits. He encourages founders to align their business models with market trends and prioritize sustainable growth over short-term gains. Additionally, he stresses the importance of networking, learning from fellow entrepreneurs, and continuously refining leadership skills.
Predictions for the Future of Digital Storytelling
Lau believes that AI-driven recommendation engines will play a significant role in the future of storytelling. With AI assisting in content discovery and personalization, digital publishing will become even more dynamic. He also predicts continued growth in user-generated content, reshaping the entertainment landscape.
Conclusion:
The Wattpad success story is a testament to the power of perseverance, adaptability, and visionary thinking. Allen Lau and his team navigated early skepticism, financial constraints, and market challenges to build a storytelling empire that continues to influence readers and creators worldwide. Whether you’re a startup founder or an aspiring writer, Wattpad’s journey holds invaluable lessons on embracing change, believing in your vision, and continuously innovating in the face of uncertainty.
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