Phoebe Gates is on a mission to establish her AI shopping company without relying on her family name. At just 23 years old, the youngest daughter of billionaire Microsoft co-founder Bill Gates and philanthropist Melinda French Gates has successfully raised over $43 million for her venture, Phia, which is currently valued at approximately $185 million.
In an interview featured on Yahoo Finance’s Opening Bid Unfiltered podcast in February, Phoebe emphasized her commitment to ensuring Phia thrives independently of her background. "I have a chip on my shoulder," she said, expressing her desire to garner support in Silicon Valley based on her abilities rather than her lineage.
Her remarks came amidst discussions surrounding her father's connections to Jeffrey Epstein, a situation that has drawn scrutiny. While Bill Gates’ representatives have vehemently denied any wrongdoing, Phoebe chose not to address the allegations directly. Meanwhile, Melinda French Gates stated that Bill must respond to the associations mentioned in court documents, which surfaced shortly after it was disclosed that she received $8 billion for her philanthropic efforts as part of their divorce settlement.
Phoebe acknowledged the influence of her father's business acumen on her entrepreneurial journey, noting, "From my dad, I’ve really learned that your team is the core of what you’re building. You can’t do anything without an incredible team."
However, Phoebe and her co-founder, Sophia Kianni, have recently faced backlash of their own. Bloomberg reported that Phia's software allegedly engaged in a practice known as "cookie stuffing," which involves falsely taking credit for sales. Despite Phia claiming in July to have discovered the issue just a day prior, Bloomberg's investigation revealed that the company had been aware of it for seven months. Their findings indicated that Phia created a hidden background tab during checkout to place its referral code, thereby overriding legitimate referrals and breaching affiliate network policies.
In response to these allegations, a Phia representative assured that any misleading features had been removed as of July 7, declaring their commitment to reviewing transactions and issuing reversals for any misattributions. The company is also in the process of hiring a compliance head to prevent future occurrences.
Phoebe Gates and Sophia Kianni, both Stanford alumni, founded Phia to function as an AI shopping assistant that integrates with browsers such as Chrome and Safari. The tool compares prices and uncovers deals across thousands of retail and resale platforms in real time, serving as a personal deal-finder for users. “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,” Phoebe explained during an interview in April.
Launched in 2025, Phia quickly gained traction, amassing hundreds of thousands of downloads shortly after debuting. A recent $35 million funding round led by Notable Capital, with participation from firms like Kleiner Perkins and Khosla Ventures, propelled Phia's valuation to approximately $185 million, following an initial seed round of $8 million less than a year earlier.
The idea for their startup blossomed as Gates and Kianni brainstormed in their Stanford dorm, eventually coalescing into a consumer-focused tool that resonates with Gates’ passion for women's empowerment and Kianni's commitment to sustainability.
Determined to operate her enterprise independently, Phoebe has refrained from seeking financial support from her parents, opting instead to secure funding from external investors. Unfortunately, some investors have diverted their attention to her personal life rather than her business initiatives.
Phoebe noted the frustration when discussions in meetings shifted to topics like potential family plans. During a moment of vulnerability, she sought advice from her mother, who encouraged her to remain focused: “Get up or get out the game.” This mantra now helps Phoebe navigate investor interactions while combating any perceptions of being a “nepo baby.”
Ultimately, she is driven by the dual purpose of validating her capabilities and creating something innovative and valuable for consumers. “My chip on my shoulder is about proving myself and building something unique that people really appreciate,” she concluded.
