Melinda French Gates refused to fund daughter's startup amid controversy

Phia, the AI-powered shopping platform co-founded by Phoebe Gates, daughter of Melinda French Gates, and her Stanford roommate Sophia Kianni, has been at the center of controversy early this year. A Bloomberg investigation revealed allegations of "cookie stuffing," where the company is accused of wrongly claiming credit for sales.

Melinda French Gates, Phoebe Gates' mother, chose not to invest in her daughter's startup. She stated last year that she wanted her daughter to develop independently and prove the business's viability without familial financial backing. "She got capitalized not because of my contacts, not because of me. I wouldn’t put money into it," French Gates said, as reported by Fortune. She indicated that this approach would foster her daughter's personal growth.

Phia has denied wrongdoing and stated that it has implemented changes to its operations since the allegations surfaced. The company has updated its coupon features and hired new personnel to ensure transparency. Despite French Gates' non-investment, the company successfully raised over $43 million in its seed funding round. Notable investors included Kris Jenner, who invested alongside family members like Khloé Kardashian.

The company maintains that it is committed to delivering value to its customers and has established stronger systems and oversight to ensure high-quality sales for its brand partners.