Melinda French Gates Refused to Fund Daughter Phoebe's Startup Amidst 'Cookie Stuffing' Allegations

Melinda French Gates, a prominent philanthropist and co-founder of the Bill & Melinda Gates Foundation, publicly stated her refusal to invest in her daughter Phoebe Gates's artificial intelligence-powered shopping platform, Phia. French Gates shared this decision at E.l.f. Beauty’s Power of Women’s Sports Summit, emphasizing her belief that her daughter should secure funding independently. She explained that Phoebe Gates "got capitalized not because of my contacts, not because of me," and that French Gates "wouldn’t put money into it." This stance was rooted in her conviction that facing investor rejection provides crucial opportunities for personal development and entrepreneurial resilience, experiences she felt might be circumvented if she provided direct financial backing. "That’s what I told her," French Gates remarked, "She’s growing from this."

Phia, co-founded by Phoebe Gates and her Stanford University roommate Sophia Kianni, launched in April 2025. The startup aims to help consumers shop smarter and save money by leveraging AI. Its valuation was reported to be $185 million prior to recent controversies. Earlier this summer, Phia became the subject of a Bloomberg investigation that leveled serious allegations of "cookie stuffing." The investigation claimed that the co-founders were aware of practices that attributed sales to the company which it did not directly drive, citing internal company communications. "Cookie stuffing" is a deceptive online advertising practice where unauthorized cookies are placed on a user's browser, often to track activity or claim credit for sales that were not influenced by the advertiser.

Phia has denied any wrongdoing. A spokesperson for the company stated that Phia has received "incredible and growing support from the customers who use our product every day." The spokesperson further explained that a feature designed to "find and display free coupons for shoppers" involved placing an affiliate cookie. Following feedback from brand partners, Phia reportedly updated this coupon feature. The timing of French Gates's comments, made in London nearly two months after Phia's launch, has brought renewed attention to her parenting philosophy regarding entrepreneurship and financial independence. Her decision highlights a deliberate strategy to encourage her children's self-reliance in their professional pursuits, even as the businesses they launch face significant scrutiny and potential reputational challenges.