Phoebe Gates, daughter of Microsoft co-founder Bill Gates, has stepped firmly into the fast-growing AI sector. At just 21, she has secured $30 million in funding for her AI-powered shopping startup Phia, raising the company’s valuation to $180 million only months after its first investment round.
Surprisingly, despite the Gates name being central to global tech, Bill Gates has not invested any money in the company. Instead, he has offered something far more unusual his personal involvement.
Earlier this year, Bill Gates shared on LinkedIn that he took on a customer support shift for Phia right after the app launched. “When your daughter asks if you’d be willing to work a shift in customer service at her startup, the only right answer is yes,” he wrote, adding a video of himself answering user queries.
He also joked, “I’ve entered the startup world again. Hopefully, I won’t break anything (no promises).”
Built in a Stanford Dorm Room
Phoebe Gates co-founded Phia with entrepreneur and climate activist Sophia Kianni while both lived in a Stanford dorm. Phoebe was studying Human Biology with a Minor in African Studies.
Their first idea wasn’t even related to shopping they initially explored building a “smart tampon.”
However, they soon shifted focus to a universal online shopping problem: too many tabs, unclear discounts, and limited eco-friendly choices.
Their solution became Phia an AI-based shopping assistant available as a mobile app and browser extension. It scans thousands of online retailers, finds the best prices, highlights second-hand options, recommends sustainable alternatives, and applies real-time discount information. In short, it acts like a personal shopper that prioritises savings and sustainability.
The concept resonated quickly. In just eight months, Phia reached 750,000 downloads, making it one of the fastest-growing tools in its category.
A Powerful Line-up of Investors
Phia’s latest funding round attracted several high-profile names, according to documents reviewed by Bloomberg. Celebrities backing the company include:
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Hailey Bieber
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Kris Jenner
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Sheryl Sandberg
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Sara Blakely
Major venture capital firms have also shown confidence. Notable Capital, Kleiner Perkins, and Khosla Ventures are leading the round firms known for early investments in companies such as Airbnb.
With the new $30 million raised, Phia has become one of the most closely watched startups in the AI and fashion-tech space.
Bill Gates’ Role: Mentor, Not Investor
Although Bill Gates has not funded the startup, he is actively guiding it. In his LinkedIn post, he emphasised how important it is for founders to learn directly from real users, noting that the best way to spot problems is to “go straight to the people using it.”
Phoebe echoed this approach in her own LinkedIn post, writing,
“At Phia, that’s our approach: listening to our users to build a smarter way to shop. We heard their feedback, so we launched our Chrome desktop extension last month – and I couldn’t think of a better time than now to throw Bill Gates on the customer service rotation.”
For Phia’s young founders, this kind of insight without the pressure of family investment is extremely valuable.
What Lies Ahead for Phia
As its valuation climbs to $180 million and top VCs join the cap table, Phia is preparing for major expansion. The company plans to improve its AI systems, enhance sustainable shopping features, and grow its presence in international markets where consumers are increasingly prioritising smarter, eco-conscious choices.
At the centre of this growth is Phoebe Gates, building her own identity in the tech world separate from her father’s wealth but strengthened by his mentorship. And with its momentum only increasing, Phia appears poised for an even bigger leap forward.
