Gates' Daughter Built $8M Startup Without Family Fortune—Here’s Why It Matters

Bill and Melinda French Gates offered crucial guidance to their Gen Z daughter, Phoebe Gates, before she launched her $8 million fashion-tech startup, Phia. According to Phoebe, the piece of advice centered on the importance of the team, emphasizing that the people you work with—whether co-founders, employees, or interns—play a pivotal role in the success of a business. “The people that you build with, who you’re at the office until 1 a.m. with—even, it comes down to the summer intern you have,” she explained to Fortune. This insight proved instrumental in shaping Phia, the AI-powered shopping platform co-founded by Phoebe and her Stanford roommate, Sophia Kianni.

Phia, now in its operational phase, has attracted over 500,000 users and secured partnerships with more than 5,000 brands. The startup aims to modernize the resale market by leveraging AI to streamline the shopping and resale experience, particularly for Gen Z, who prioritize sustainability and authenticity. The platform operates as a free Chrome extension and is designed to provide users with insights on product value and help locate secondhand items across major resale sites.

Despite her parents' extensive networks and resources, Phoebe did not receive financial backing from Melinda French Gates for Phia. Melinda, who is among the wealthiest individuals globally, made it clear that her daughter would need to raise capital independently. “She got capitalized not because of my contacts, not because of me. I wouldn’t put money into it,” Melinda stated. This decision, rooted in fostering resilience and independence, aligns with the Gates family’s broader approach to wealth and inheritance, where the children are expected to forge their paths without relying on family support.

Phoebe’s journey reflects the challenges and opportunities facing Gen Z entrepreneurs. The startup landscape is highly competitive, and female founders, in particular, face unique hurdles in securing funding. According to Melinda, the experience of navigating these challenges is a form of growth. “That’s what I told her. She’s growing from this,” she remarked. This philosophy resonates with broader discussions on how young entrepreneurs, especially women, can thrive in an environment that often favors established networks and male-led ventures.

Phia’s success is also attributed to its team and strategic partnerships. The startup secured $8 million in seed funding led by Kleiner Perkins, with high-profile investors including Sheryl Sandberg, Sara Blakely, and Michael Rubin. These investors bring not only capital but also deep industry insights, particularly in the areas of fashion, technology, and consumer behavior. Phoebe emphasized the importance of assembling a team that understands the evolving needs of consumers, noting that “we are the women who use this product day in and day out. That’s why we wanted to bring people onto our cap table who truly understand how shopping needs to adapt and where it’s headed”.

The broader context for Phoebe’s venture includes a rapidly changing job market shaped by AI and automation. Bill Gates has repeatedly advised Gen Z to embrace AI tools to enhance their skills and adaptability. However, he also acknowledges the disruptive impact of AI on entry-level jobs, warning that the job market is unlikely to stabilize in the near term. This advice aligns with Phoebe’s own experience, as she navigates a business environment where innovation and resilience are essential to success.