Bill Gates's daughter raises $30M for her AI shopping start-up
What's the story
Phoebe Gates, the youngest daughter of Microsoft co-founder Bill Gates and Melinda French Gates, has raised $30 million for her artificial intelligence (AI) start-up, Phia, according to Bloomberg. The funding round was confirmed by a company spokesperson and will value the New York-based company at $180 million. This comes just months after Phia's first funding round in September where it raised $8 million.
Star power
Phia's celebrity endorsements and future plans
Phia, co-founded by Gates and Sophia Kianni, has attracted a host of high-profile backers including Hailey Bieber, Kris Jenner, Sheryl Sandberg, and Spanx founder Sara Blakely. Although Bill Gates hasn't invested in the company himself, he has publicly endorsed its mission. The latest funding round will be led by venture capital firm Notable Capital with Kleiner Perkins and Khosla Ventures also participating.
Business model
Innovative approach to online shopping
Phia is positioning itself as an AI solution to the challenges of online shopping, where consumers often struggle to find deals and brands target the wrong audience with ads. The company is developing an AI-powered search engine that integrates with Chrome on desktop and Safari on mobile. Users can search for products, compare prices, and track real-time discounts across different retailers and resale platforms.
Expansion
Phia's growth and future prospects
The AI shopping engine has been downloaded 750,000 times in the eight months leading up to November. Phoebe Gates and Sophia Kianni first came up with the idea while in their Stanford dorm room. They initially thought of a smart tampon before switching to fashion tech, which eventually led them to develop the AI shopping engine.