Inovia’s first Discovery Fund backs the next generation of VC funds in their mission to identify and nurture high-potential startups at the pre-seed and seed stages. We sat down with these emerging managers to discuss their vision, their approach, and what they look for in a pitch.
Today, we’re happy to introduce you to Eva Lau, Founder and General Partner of Two Small Fish Ventures.
After leaving Wattpad, the social storytelling platform she had helped expand from tens of thousands of users to tens of millions, Eva Lau reflected on her career and realized she had much valuable experience to share. For the past two decades, she had played hands-on roles in major tech battlegrounds, from the rise of web browsers and the semiconductor war of the 1990s to the boom of mobile computing and social sharing of the late 2000s.
Entrepreneurs sought out her advice. Before long, she became an angel investor, setting up Two Small Fish Ventures with her husband, Wattpad co-founder Allen Lau, in 2014. Some of their most notable investments have included Bitstrips (acquired by Snapchat in 2016), drug-discovery platform BenchSci, and chat support interface builder ADA.
After raising CAD$12M in 2019, Two Small Fish launched its third fund in 2022, with a targeted size of US$30M. One of the few women in Canada to head a VC fund, Eva is now focusing on three mega-trends: Generative AI, Web3 (Blockchain) and sustainable computing. She is eyeing companies that can bring more impactful value to their customers.
WHY DID YOU CHOOSE TO FOCUS ON THE EARLY STAGES OF INVESTMENT?
I am an engineer and a very technology-oriented person, and the early stage is when technology is most needed. That’s where I am at my best, understanding programming and bringing the technology together to create great products. Finding undiscovered gems, helping them in some ways with my experience and participating in their journeys brings me so much joy.
TELL US ONE OR TWO THINGS THAT MAKE YOUR FUND UNIQUE
As entrepreneurs-turned-investors, we know what it means to chart the uncharted path and define a category. We work with founders from a fundraising perspective, and if they want, to help them figure out the product. And when it comes to founders’ mental health, we certainly understand it better than anyone. Many times, one of them will call me, crying, and I will say: “I get it. I was like you.”
WHAT HAVE YOU LEARNED THROUGH FAILURES OR TRIALS AND ERRORS?
During my 10 years in VC, I learned to support founders rather than be prescriptive. Initially, I would say, “I did this at Wattpad. You should try that too!” But at the end of the day, founders are the ones who know their business far better than investors and have the most skin in the game. All we can do is to be there for them and give suggestions–not tell them what to do.
WHAT GETS YOUR ATTENTION IN A PITCH?
Vision. In the early stage, it’s all about the end goal, what you are trying to transform. Not the revenue goal, because whatever projections you are giving me, I can guarantee that they won’t look the same in six months if you need to pivot! I look for companies that know what kind of impact they want to bring to users. How are you transforming their lives?
WHAT IS THE ADVICE YOU MOST OFTEN GIVE TO FOUNDERS?
Don’t box yourself in with the TAM and all the other acronyms defining market size. If you are really building a new category, your target addressable market probably doesn’t exist. Think more about the users who will benefit greatly from your product. That’s the focus because they ultimately have to love your product and never want to leave you. Market size and revenue will come later.
Visit our website to learn more about the mission and leaders of other exceptional emerging managers in our portfolio: Boon, Front Row Ventures, Garage Capital, Luge, Maple, N49P, Northside Ventures, Roar Ventures, and The51.