Last month, Selena Gomez's mental health startup was unable to cover employee sa

Mandy Teefey, Selena Gomez's mother and co-founder of Wondermind, shared with staff that she took out a loan against her home to keep the mental health startup operational after failing to meet payroll obligations twice in recent weeks.
 
Wondermind, launched in 2021 by the singer, actress, and entrepreneur Selena Gomez, is facing financial challenges, reportedly running out of funds and missing payments to employees, vendors, and freelancers since late March. The Los Angeles-based company, which has around 15 employees dedicated to creating articles, interviews, and podcasts focusing on mental health, is currently relying on Teefey, who is also the CEO, for support. Recently, she informed the staff that she had borrowed money to settle outstanding debts. While one missing paycheck has been addressed, employees are still awaiting another, and many freelancers and vendors are owed significant amounts of money. A spokesperson for Wondermind stated that the situation has been "rectified" and assured employees they would receive their owed payments by Monday. "Like many startups, Wondermind has faced its own set of challenges," the spokesperson said in a statement to Forbes, adding that the company aims to embark on a new chapter soon to continue its mission of enhancing mental fitness for many. Teefey did not provide a comment, and Gomez's representative did not respond to requests for input. At 32, Gomez is recognized as one of America's wealthiest self-made entrepreneurs, with an estimated net worth of $700 million, largely due to her successful makeup line, Rare Beauty, which generated nearly $370 million in revenue in 2023.

She co-founded Wondermind with Teefey and Daniella Pierson, founder and CEO of The Newsette, following personal experiences with mental health issues. During a panel discussion in March 2023, Gomez highlighted the motivation behind Wondermind, emphasizing the desire to help others through their mental health journeys after she and her mother found common ground in their struggles. In 2022, a year after its inception, Wondermind secured $5 million in Series A funding, achieving a valuation of $100 million, with notable contributions from Serena Williams' investment firm and others. Despite the early excitement and celebrity endorsement, Wondermind reportedly faces dire financial challenges, as detailed in communications and interviews with employees who spoke anonymously due to concerns over retaliation. Staff members claim the company owes around $60,000 to a PR firm and tens of thousands more to freelance writers, some of whom haven't been compensated in over three months. Concerns about the company's stability reportedly began in January 2023 when Teefey assumed the role of sole CEO after Pierson's departure. The reasons for her exit have not been disclosed. Employees have expressed doubts about Teefey's operational abilities, noting significant deals were declined if they involved Gomez, including a multimillion-dollar partnership with Airbnb, which they believe exacerbated financial issues. Teefey's chief of staff, Emma Wright, refuted the employees' claims about the Airbnb deal, stating that those opinions lacked a full understanding of the negotiation process. Wright defended Teefey's leadership, describing her as committed to preserving the team's livelihoods. Gomez's role at Wondermind has reportedly diminished; she is listed as the chief impact officer, but employees indicated that her involvement is minimal, often requiring extensive effort to engage her on promotional activities. A company representative disputed these claims, asserting that Gomez's involvement is significant. On March 31, employees faced another setback when they did not receive their second paycheck for the month. Teefey later informed the staff that their healthcare benefits had been terminated due to a delay in receiving funding from an investor. She explained that previous funding attempts were stalled, attributing their financial difficulties to these delays. In a subsequent meeting, Teefey reassured employees that the company had secured funding to pay them through the month, but the status of their projects was in flux as they grappled with budget management. However, on April 30, payroll was missed again, leading to renewed concerns about the company's viability. In a recent all-hands meeting, Teefey conveyed that she had taken out a loan to settle debts owed to employees, vendors, and freelancers, promising payments soon.

Yet, uncertainty remains as employees worry about recurring delays and the overall future of the startup. As one employee remarked, "While Mandy seems genuinely committed, there have been many unfulfilled promises. Opportunities are always supposedly on the horizon, but they never materialize." Another noted that, until recently, they felt secure with Gomez's involvement but now perceive her role as nearly nonexistent.
Forbes