Phoebe Gates is on a mission to establish her AI shopping enterprise, striving to distance herself from her well-known family name. At just 23, she has successfully secured over $43 million in funding for her venture, Phia, which boasts a current valuation of approximately $185 million. As the youngest daughter of Microsoft co-founder Bill Gates and philanthropist Melinda French Gates, she is keen on ensuring her company flourishes independently, without association to her family’s wealth or legacy.
In her recent appearance on Yahoo Finance’s Opening Bid Unfiltered podcast, Gates expressed her motivation, stating, “I have a chip on my shoulder.” She is driven by the desire to gain respect and support from private equity circles in Silicon Valley based on her efforts rather than her family connections.
The timing of her comments coincided with renewed scrutiny of her father's past associations with Jeffrey Epstein, which Gates did not address directly. Bill Gates' representatives have consistently denied any wrongdoing or claims regarding these relations. However, Melinda French Gates has recently remarked that her ex-husband must address issues surrounding Epstein’s contacts. This follows her receiving $8 billion for her philanthropic organization, Pivotal, as a settlement post-divorce.
Despite her father's storied career, Phoebe credits him for one critical lesson: the importance of building a strong team, noting, “You can’t do anything without an incredible team.”
As one of the co-founders of Phia along with her Stanford roommate Sophia Kianni, Gates is innovating how consumers shop online. The AI shopping assistant integrates with web browsers such as Chrome and Safari, analyzing prices across countless retail platforms in real time, aimed primarily at young women who are savvy shoppers but value their time.
In a recent conversation with Fortune's Most Powerful Women editor, Gates clarified, “Our target consumer is a young woman who’s hustling. She shops like a genius, but she doesn’t want to waste her time doing it.”
However, Bloomberg recently reported that Phia allegedly engaged in questionable affiliate marketing practices, known as "cookie stuffing," where the extension would falsely claim credit for sales it didn’t generate. After a test involving over 50 sites, it was found that Phia opened background tabs to inject referral codes, directly contravening many affiliate networks' rules. A spokesperson for Phia acknowledged the issue, stating it had been rectified based on user feedback.
Launched in 2025, the New York-based startup has seen rapid growth, with hundreds of thousands of downloads in its early months. The latest round of funding, which raised $35 million led by Notable Capital with notable contributions from Kleiner Perkins and Khosla Ventures, has bolstered Phia’s valuation, reflecting the increasing interest in AI-powered tools that simplify online tasks.
Gates and Kianni initially explored various entrepreneurial ideas while in their Stanford dorm, finally settling on a tool that merges Gates’ passion for women's empowerment and Kianni’s commitment to sustainability. True to her commitment to establishing her own identity, Gates has refrained from accepting any financial support from her parents, opting instead to secure outside investments, even in the face of investors focusing on her personal life rather than her business initiatives.
Raising the issue of future family plans during investor meetings has been a source of frustration for both entrepreneurs. However, Melinda French Gates encouraged her with a straightforward piece of advice: “Get up or get out the game.”
In a candid moment on the Call Her Daddy podcast, Gates reflected on how this advice has motivated her when dealing with investor inquiries, helping her combat any assumptions of nepotism. “The chip on my shoulder is not only proving myself but building something novel and unique that consumers actually love,” she emphasized.
This account of Phoebe Gates' entrepreneurial journey highlights her determination to create a standout venture in the tech industry, driven by her own vision and the desire to overcome the challenges of her celebrated lineage.
