From Startup to $660M Exit: The Wattpad Story | Allen Lau

Join host Matan Hazanov for an incredible discussion with Allen Lau, co-founder of Wattpad, the global storytelling platform that sold for an astounding $660M USD.

From his roots as a software engineer to scaling Wattpad to 100M users, Allen shares hard-earned lessons on finding product-market fit, navigating startup challenges, and the critical role of timing in building a powerhouse business. Now a venture capitalist at Two Small Fish Ventures, Allen reveals common mistakes founders make when raising capital, insider tips on hiring and leadership, and why he chose to build Wattpad in Canada instead of Silicon Valley.

Perfect for entrepreneurs, investors, and anyone curious about transforming an idea into a global phenomenon, this episode is packed with actionable insights and inspiring stories.

Highlights:

• How Wattpad grew from 1,000 users to 100M
• Why Canada gave Allen a competitive edge
• Debunking myths about venture capital’s value
• The “rule of three and ten” for scaling startups

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Connect with Allen

Read his blog: https://allensthoughts.com/

VC Fund: twosmallfish.com

Follow on X: @allenlau

LinkedIn: linkedin.com/in/notallenlau/

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oin the Conversation: What’s your biggest takeaway from Allen’s journey? Share with us on X @matanhazanov or comment on YouTube! Like, subscribe, and follow The Profit or Pivot Podcast for more stories from game-changing founders.

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About Allen Lau

Allen is Co-founder and Operating Partner at Two Small Fish Ventures, an early-stage venture capital firm focused on the next frontier in computing and its applications. The firm is renowned for writing the crucial ‘first cheque’ to promising startups that later became world-class companies, such as SkipTheDishes, BenchSci, Printify, Story Protocol, Ideogram, and Ada, among many others. He is also the co-founder and former CEO of Wattpad, the world’s leading social storytelling platform. Allen directed a global team to leverage AI and data to disrupt the entertainment industry. Under his leadership from 2006 to 2022, Wattpad grew into a community of 100 million users, raised US$120 million from top VCs around the world, and realized a successful exit in a transaction valued at more than US$660 million in 2021. Allen received his bachelor's and master's degrees from the University of Toronto’s Electrical Engineering program. In 2020, he was inducted into the Engineering Alumni Hall of Distinction at the University of Toronto.