Melinda Gates Refuses to Fund Daughter's Startup: 'Real Companies Get Real Backing – Not From Mum'

Melinda French Gates has drawn a firm line between family wealth and entrepreneurial independence, refusing to financially back her daughter's promising AI fashion venture despite her billionaire status.

The philanthropist and Microsoft co-founder's ex-wife made the surprising revelation at Los Angeles' Power of Women's Sports Summit, where she told tennis legend Billie Jean King that 'real companies get real backing' rather than relying on family connections.

No Family Bail-Out at the Power of Women's Sports Summit

Speaking at the summit in Los Angeles, Melinda, 60, emphasised that her daughter, widely believed to be 22-year-old Phoebe Gates, had secured funding without relying on her mother's resources. 'She got capitalised not because of my contacts, not because of me. I wouldn't put money into it,' she told tennis icon Billie Jean King during the event.

'If this is a 'real business,' then others need to be willing to back it – and if not, her daughter will learn to handle rejection.' Melinda underlined the importance of resilience and courage in entrepreneurship, especially for women.

Phoebe Gates Co-Founds Phia—Without Family Funds

While Melinda didn't name Phoebe directly, media outlets confirm that the youngest Gates daughter co-founded Phia, an AI-powered fashion app, with her Stanford roommate, Sophia Kianni. Phia aggregates clothing prices from 40,000 online retailers to help users find the best deals.

Phoebe herself previously echoed her mother's stance, telling The Post:

'We don't want this to be something that's funded by my family – we want this to be a real company.'

The startup has since raised at least $850,000 (£625,000) through Soma Capital, angel investors, and a Stanford social impact grant, as well as public support from media mogul Kris Jenner and the launch of a podcast, 'The Burnouts,' chronicling their journey.

A Parents' Pact: Building Independent Success

Melinda's position aligns with that of her ex-husband, Bill Gates, who has also affirmed that their children will inherit less than 1% of his wealth to foster independence. Bill himself expressed relief when Phoebe chose not to seek personal funding from him, admitting that his involvement would have come with strings attached.

Reinforcing Equality in Tech Funding

At the summit, Melinda drew attention to a gender disparity in tech finance: just 2.3% of global venture capital goes to all-female teams. This challenge makes securing external investment especially tough for women.

Mentorship from Billie Jean King

Billie Jean King, co-present at the event, praised Phoebe's independent route: 'To your point, like your daughter has figured out how to get this first business started—that's amazing. I don't think it'll ever fail—she'll get feedback from every situation.'

Grit Over Nepotism

Melinda said she wants Phoebe to experience 'real-world grit,' learning from both the sting of rejection and the resilience required to build a business that can stand on its own.

Phoebe and Sophia's startup, Phia, officially launched in April 2025 and has already attracted nearly $1,000,000 (£735,000) in seed funding, along with media attention from Bill Gates and Kris Jenner.

This striking stance from one of the world's wealthiest women underscores her commitment to teaching entrepreneurial resilience, particularly emphasising the importance of courage and self-reliance for women entering competitive business landscapes.

Phoebe's achievement demonstrates that merit, not family fortune, drives genuine innovation.