New York News — December 4 2025
Phoebe Gates, daughter of Microsoft cofounder Bill Gates and philanthropist Melinda French Gates, is raising $30 million in new funding for Phia, her AI-driven online shopping startup. The raise—confirmed by a company spokesperson—will value the New York–based company at $180 million, marking a sharp climb from its $8 million seed round completed in September.
Gates cofounded Phia with entrepreneur and activist Sophia Kianni, building the initial concept in their Stanford University dorm room. The pair told Vogue that Phia originally began as an experimental project involving a Bluetooth-enabled tampon before pivoting toward fashion and shopping technology.
Celebrity-Backed Momentum
Phia has drawn an unusually star-studded roster of supporters. Backers include Hailey Bieber, Kris Jenner, former Meta COO Sheryl Sandberg, and Spanx founder Sara Blakely. Despite public support for his daughter’s venture, Bill Gates himself is not an investor, Phoebe Gates noted in a recent interview.
Silicon Valley Heavyweights Join In
The upcoming round will be led by Notable Capital under managing partner Hans Tung, known for early investments in Anthropic and Airbnb. Venture firms Kleiner Perkins and Khosla Ventures, the latter represented by partner Keith Rabois, are also participating.
Fixing a “Broken” Online Shopping Experience
Phia positions itself as a solution to the cluttered, time-consuming world of online shopping. Its AI agent—available as a Chrome desktop extension and Safari mobile app—helps users search across brands, compare prices, and identify deals. The company reports 750,000 downloads in the eight months ending in November, suggesting strong early traction.
Riding the AI Agent Boom
The funding push comes amid soaring valuations for AI agent startups. In its pitch deck, Phia compares itself to other fast-growing players in the space, including:
-
Harvey (legal AI), valued at $8 billion
-
Mercor (HR automation), valued at $10 billion
-
Cursor (software development), valued at $29.3 billion
With increasing investor appetite for AI assistants that automate “grunt work,” Phia is betting that personalised shopping guidance will be one of the next major consumer applications of agent technology.
Phia Frequently Asked Questions (FAQ)
1. What is Phia?
Phia is an AI-powered online shopping startup founded by Phoebe Gates and Sophia Kianni. The platform uses an AI agent to help users find products, compare prices, and spot deals across multiple retailers through a Chrome extension and Safari mobile app.
2. How much funding has Phia raised?
Phia is currently raising $30 million in new funding, valuing the company at $180 million, a significant jump from its $8 million seed round closed in September 2025.
3. Who founded Phia?
Phia was cofounded by:
-
Phoebe Gates, daughter of Microsoft cofounder Bill Gates
-
Sophia Kianni, climate activist and entrepreneur
The pair began working on the startup in their Stanford University dorm room.
4. Is Bill Gates an investor in Phia?
No. Phoebe Gates confirmed that Bill Gates has not invested in Phia, although he has publicly supported the startup.
5. Which celebrities and public figures have invested in Phia?
Phia has attracted a high-profile group of celebrity investors, including:
-
Hailey Bieber
-
Kris Jenner
-
Sheryl Sandberg (former Meta COO)
-
Sara Blakely (Spanx founder)
6. Which venture capital firms are backing the new round?
The $30 million round will be led by Notable Capital, headed by Hans Tung.
Other participating investors include:
-
Kleiner Perkins
-
Khosla Ventures, represented by Keith Rabois
7. Why is Phia raising so much money so quickly?
Investor interest is driven by:
-
Strong traction: 750,000 downloads in eight months
-
The broader boom in AI “agent” technology
-
Growing demand for tools that simplify online shopping
-
Comparisons to fast-growing AI agent companies like Harvey, Mercor, and Cursor
8. What problem does Phia aim to solve?
Phia claims the online shopping experience is broken—too cluttered, slow, and filled with poor product targeting.
Its AI agent streamlines the process by:
-
Searching across brands
-
Comparing prices
-
Highlighting deals
-
Connecting shoppers with better-matched products
9. What platforms does Phia support?
Phia is currently available as:
-
A Chrome desktop extension
-
A Safari mobile app
More platforms may be added as the product expands.
10. Why is Phia part of the AI agent boom?
AI agents are rapidly gaining traction for automating tasks traditionally done by humans.
Phia positions itself within this trend by offering a personal shopping AI, similar to how other agent startups automate:
-
Legal work (Harvey)
-
HR functions (Mercor)
-
Software development (Cursor)
11. How is Phia different from other shopping apps or aggregators?
Unlike traditional shopping platforms, Phia uses AI-driven personalisation and real-time price intelligence to deliver smarter, faster, more accurate recommendations—reducing the time users spend searching across retailers.
12. What is the origin story behind Phia?
Gates and Kianni started experimenting with consumer-facing tech ideas in college—initially even considering a Bluetooth-enabled tampon—before pivoting to fashion and digital shopping tools after identifying market demand.
