In a candid interview with The New York Times published in April 2025, Microsoft co-founder Bill Gates opened up about his youngest daughter Phoebe Gates’ entrepreneurial venture and why he ultimately did not provide financial backing for it. Phoebe, then 22 and a recent Stanford graduate, co-founded Phia — an AI-powered shopping tool designed to help users find the best prices on fashion items across thousands of new and resale e-commerce sites.
Phia functions as a browser extension and mobile app that compares prices in real time, offers deal insights, and aims to make shopping smarter and more sustainable. Launched in April 2025 alongside co-founder and former roommate Sophia Kianni, the startup quickly gained traction, attracting hundreds of thousands of users in its early months and scaling rapidly thereafter.
Bill Gates’ Honest Reaction
When Phoebe first shared her idea, Bill Gates admitted he braced himself for a funding request. “I thought, ‘Oh boy, she’s going to come and ask,’” he recalled. He acknowledged that he would have been willing to invest if asked, but he was relieved it never happened.
Gates explained his concerns about mixing family and business: “I would have kept her on a short leash and be doing business reviews, which I would have found tricky. And I probably would have been overly nice but wondered if it was the right thing to do? Luckily, it never happened.”
He feared that his dual role as father and investor would create awkward dynamics — being too lenient in one moment and overly controlling in another — potentially straining their relationship.
A Family Philosophy of Independence
This decision aligns with the Gates family’s long-standing approach to parenting and wealth. Bill Gates has repeatedly stated that his three children will inherit less than 1% of his fortune, emphasizing the importance of hard work and self-reliance. Melinda French Gates echoed this stance, publicly noting that she would not invest in her daughter’s business. She wanted Phoebe to secure funding from outside investors and face real market validation rather than relying on parental support.
Phoebe herself has been vocal about building Phia on its own merits. She has expressed a desire for “no ties to my privilege or my last name” and described having “a chip on her shoulder” to prove herself independently. Despite her famous surname, she has intentionally kept family connections out of investor pitches.
Phia’s Independent Success
Phoebe and Sophia successfully raised significant funding without parental involvement. Early rounds included an $8 million seed led by Kleiner Perkins, with participation from high-profile investors such as Hailey Bieber, Kris Jenner, and Sara Blakely. Subsequent funding pushed the total raised to around $35–43 million, with valuations reported between $180 million and $185 million by late 2025 and early 2026. The company grew to over half a million downloads within months and continued expanding its user base and brand partnerships.
Bill Gates has offered non-financial support, including advice on hiring and team-building. He even worked a customer service shift at Phia shortly after launch, sharing the experience on LinkedIn and praising the startup’s mission to make shopping more efficient and sustainable.
A Relatable Billionaire Parenting Dilemma
The story highlights a common challenge for wealthy parents: how to support children’s ambitions without undermining their autonomy or work ethic. Bill Gates’ relief at not having to fund Phia reflects his desire to avoid complicating the father-daughter relationship with business oversight.
As Phia continues to evolve in the competitive AI and e-commerce space, Phoebe Gates’ journey stands as an example of a young founder determined to succeed on her own terms — even with one of the world’s most recognizable last names in the background. The startup’s growth demonstrates that external validation and rigorous market testing can fuel genuine progress, a lesson both Bill and Melinda Gates clearly hoped to impart.
About The Author
