Why Melinda Gates Won't Fund Her Daughter's Startup

Melinda French Gates, a billionaire with a net worth of about $30.8 billion, has a unique approach to supporting her daughter's new business venture. She chose not to invest in it, even though she could easily afford to. Instead, she believes her daughter should seek funding from others and learn to handle rejection if it comes.

A Lesson in Resilience and Self-Sufficiency

This decision aligns with the values Melinda and her ex-husband, Bill Gates, have long held regarding wealth. They plan to leave their children with less than 1% of their fortune, encouraging them to build their own paths.

Phoebe's Fashion-Tech Startup

Melinda's daughter, Phoebe, recently launched a fashion-tech startup called Phia with her Stanford roommate. The platform helps users find the best clothing deals by comparing prices across 40,000 sites. Despite her parents' wealth, Phoebe was not allowed to drop out of Stanford to pursue her startup, unlike her father, who left college to start Microsoft.

The Importance of Resilience

Melinda's stance is not just about tough love or self-sufficiency. She wants her daughter to develop resilience and grit, especially in a system that is often unfair to women. Female founders face significant challenges in securing funding, and Melinda believes her daughter should learn to navigate these obstacles.

Insights from the Power of Women’s Sports Summit

During a discussion at the Power of Women’s Sports Summit, Melinda shared her thoughts on the importance of resilience. She noted that successful women often find their strength through difficult experiences. Tennis legend Billie Jean King, who was also present, agreed and emphasized the value of learning from setbacks rather than fearing failure.

The Reality of Female Founders

With only 2.3% of global venture capital going to female-founding teams last year, the challenges are real. Those who succeed often do so by turning their failures into motivation.