Phoebe Gates & Sophia Kianni Raise $8M for Phia - Gen Z Fundraising

A New Fashion Tech Startup Emerges: Introducing Phia

A novel fashion technology company has recently entered the market. Phia, a shopping application, was created by Phoebe Gates, daughter of Bill Gates, and her Stanford University colleague and co-founder, Sophia Kianni.

How Phia Revolutionizes Fashion Price Comparison

Phia functions by searching the internet to facilitate comparisons of fashion item prices for users. Described by the company as “Google Flights for fashion,” it is available as both a mobile application and a browser extension.

According to Gates, the future of fashion will center on increasing accessibility to products previously unavailable to many. This vision was articulated to TechCrunch.

The Rise of AI-Powered Fashion Startups

This app represents one of numerous fashion startups gaining prominence in the current era of artificial intelligence. These companies aim to simplify the online e-commerce experience.

Both investors and consumers have responded positively to this trend. Phia, despite launching only in April, reports a user base of approximately 500,000.

Securing $8 Million in Seed Funding

In early September, Phia announced an $8 million seed funding round, completed in just three and a half weeks, as stated by the 23-year-old Gates. Kleiner Perkins led the investment, with participation from Kris Jenner and Hailey Bieber, among others.

Enhanced Search Capabilities and Future Goals

Kianni announced that Phia has implemented an improved search function, now encompassing over 300 million fashion items. The objective is to create a seamless e-commerce experience, allowing customers to easily view past purchases and discover new, relevant items.

From Chrome Extension to Mobile App

Gates and Kianni initially connected two years ago and began developing the app approximately a year later. Their initial product was a desktop Chrome extension designed to locate secondhand alternatives during online shopping. Kianni noted that this early version was “pretty buggy.”

User feedback indicated that the majority of their target audience preferred shopping on their mobile phones rather than desktops. Furthermore, younger consumers expressed a greater interest in immediate price comparisons than secondhand options. This led to a strategic shift in focus, as Kianni explained.

Gates added that their own shopping habits confirmed this insight, observing that frequent online shoppers typically use their phones, while laptops are reserved for work.

Building the Phia App

Consequently, Gates and Kianni began developing a dedicated mobile application.

The initial funding for Phia came from a social entrepreneurship program at Stanford University, as Kianni revealed. As traction grew, they determined that venture capital was necessary to fully realize their vision.

Leveraging Networks for Fundraising

They targeted top-tier venture capital firms and prioritized investors who were women. Before initiating their fundraising efforts, Soma Capital contacted Kianni via LinkedIn, expressing interest in the product and providing an early institutional investment.

“They subsequently introduced us to a wealth of valuable contacts,” Kianni stated. “We pursued both direct outreach and leveraged these connections.”

The funding round represents a convergence of influential figures in business and technology, drawing upon the founders’ extensive networks.

Sophia Kianni’s Background and Activism

Kianni is a recognized activist, having established Climate Cardinals, a nonprofit dedicated to translating climate change information into multiple languages. She is among the youngest individuals to advise the United Nations and has been featured on the BBC’s 100 Women list.

Notable Investors in Phia

In addition to Jenner and Bieber, the investment round included participation from billionaire Michael Rubin, Spanx founder Sara Blakely, and Sheryl Sandberg. Soma Capital facilitated an introduction to the team at Kleiner Perkins, who ultimately led the seed round.

Rubin commented that he has long recognized the transformative potential of technology in e-commerce. He expressed excitement about Phia’s innovative approach to enhancing the online shopping experience, making it more intelligent and accessible.

Gen Z Marketing Strategies

Phia’s marketing strategy is strongly aligned with Gen Z preferences, emphasizing organic, founder-led content. Gates and Kianni openly share their experiments with Phia, solicit feedback via direct messages, and utilize social media for recruitment and design sourcing. They also employ ChatGPT to develop viral marketing campaigns.

Their podcast, “The Burnouts,” launched in April, further amplifies their reach, boasting nearly half a million Instagram followers. Kianni explained that the podcast drives interest in Phia by offering career advice to young people, particularly women, and has already garnered 10 million views across social media platforms.

The podcast allows them to transparently document the development of their company, sharing both successes and challenges, which, in turn, assists others aspiring to launch similar ventures, she added.

A Digital-First Approach to Growth

“We’ve adopted a digital-first strategy across all aspects of our operations,” Kianni stated. “This approach has undoubtedly contributed to our rapid growth.”

Future Plans and Vision

Gates and Kianni intend to use the new funding primarily to expand their team, currently consisting of 12 individuals, and are actively hiring through social media. They envision Phia as the future of personalized shopping.

Gates expressed her aspiration to develop a personalized agent capable of integrating with calendars to advise customers on optimal purchase timing, resale opportunities, and item retention.

“There is still a significant amount of work to be done, and much more to learn and achieve,” Kianni concluded. “We are committed to sharing this journey publicly, allowing our audience to learn and grow with us.”