According to Inc, Phoebe Gates, daughter of Microsoft founder Bill Gates and philanthropist Melinda French Gates, is raising a $30 million Series A funding round for her AI shopping startup, Phia. The company, which she co-founded with Sophia Kianni in 2023, previously raised $8 million in September. If successful, this new round would value the company at $180 million. The funding is being led by Notable Capital, with Kleiner Perkins and Khosla Ventures also participating. Notably, neither Bill nor Melinda Gates has invested, but backers include Hailey Bieber, Kris Jenner, Sheryl Sandberg, and Spanx founder Sara Blakely.
The Celebrity-Backed Hustle
Here’s the thing: the investor list is arguably more interesting than the initial business premise right now. An AI-powered shopping assistant that hunts for the best price, including second-hand options? We’ve seen that movie before. Honey, Rakuten, a dozen browser extensions. But getting Kris Jenner, Sheryl Sandberg, and Sara Blakely to write checks? That’s a different kind of signal. It’s not just nepotism—though, let’s be real, the Gates name opens every door. It’s a specific blend of celebrity marketing clout and serious operational experience. They’re not just buying into an app; they’re buying into Phoebe Gates’s network and her ability to maybe, just maybe, cut through the noise.
How It Works And The Real Challenge
So, what does Phia actually do? Basically, it uses AI to scan across retailers and resale platforms to find you the lowest price on a specific clothing item. It’s a comparison engine with a chatbot interface. The tech challenge isn’t the scraping or the AI chat—that’s pretty commoditized. The real hurdle is aggregation. Getting seamless, reliable access to inventory data from hundreds of brands and marketplaces like Depop or The RealReal is a brutal, behind-the-scenes grind. It’s a play on becoming the Kayak for fashion. But fashion is a lot messier than flight schedules.
Why Aren’t Mom And Dad Investing?
The fact that Bill and Melinda aren’t on the cap table is the most telling detail. Is it to avoid the obvious nepotism headlines? Probably. But it also might be a strategic choice to force the startup to stand on its own merits with institutional VCs like Kleiner Perkins. Or, maybe they just think it’s a crowded space. A $180 million valuation on what’s essentially a feature is a hefty bet. The VC heavyweights are clearly betting on the founder as much as the product. Can Phoebe Gates build a real business, not just a well-funded project? That’s the $30 million question.
