While Selena Gomez enjoys billionaire status, her mother resorted to putting her home on the line just to pay employees at the singer’s struggling mental health startup Wondermind.
Key Takeaways
- Wondermind CEO Mandy Teefey reportedly took out a home loan to cover employee salaries and company debts, though this claim has been disputed.
- The mental health startup has missed payroll multiple times, terminated employee health benefits, and owes hundreds of thousands to freelancers and vendors.
- Financial troubles reportedly began in January 2023 when Teefey became sole CEO, with employees questioning her business leadership capabilities.
- Despite Selena Gomez’s billionaire status from her Rare Beauty brand, the company has struggled to maintain stable operations since its 2021 founding.
- A company spokesperson claims the financial situation has been rectified and all owed payments will be made.
Financial Crisis at Celebrity Mental Health Startup
Wondermind, the mental health startup co-founded by Selena Gomez and her mother Mandy Teefey, is facing severe financial difficulties that have left employees without paychecks and vendors unpaid. The company, launched in 2021 with the mission of providing a safe online space for discussing mental health struggles, has reportedly been unable to meet its financial obligations for months. Employees received compensation for only one out of two missed paychecks, while freelancers and vendors are reportedly owed “hundreds of thousands” in outstanding payments, creating a stark contrast to the company’s initial $100 million valuation.
According to multiple reports, CEO Mandy Teefey took desperate measures to address the financial crisis by securing a loan against her personal home to pay staff and creditors. However, conflicting information has emerged about the source of emergency funding, with some sources indicating that billionaire Selena Gomez stepped in with additional investment. The company’s troubles have been particularly jarring considering it secured $5 million in funding in 2022 and boasted a $100 million valuation at that time, raising questions about financial management practices.
Behind-the-Scenes Management Issues
The financial turmoil at Wondermind reportedly intensified after January 2023 when Teefey assumed the role of sole CEO. Former employees have questioned Teefey’s business acumen, suggesting her leadership contributed to the company’s downward spiral. In March, the situation deteriorated further when employee health benefits were abruptly terminated, and staff were advised to seek COBRA coverage—adding personal financial strain to already underpaid workers. The company also reportedly owes approximately $60,000 to a PR firm, highlighting the extent of its unpaid obligations.
“We apologize for the email on a wellness day. As you are aware, we have been working tirelessly to secure our next round of funding,” said Mandy Teefey, CEO of Wondermind.
Some employees have alleged that Teefey rejected potentially lucrative brand deals involving Selena Gomez, which could have improved the company’s financial position. This claim has been disputed by Wondermind’s chief of staff. The controversy raises questions about whether Teefey’s personal decisions may have compromised the company’s financial stability, especially when contrasted with her daughter’s tremendous business success with Rare Beauty, which has contributed significantly to Gomez’s billionaire status.
Competing Narratives on Financial Resolution
Conflicting reports have emerged regarding how the company is addressing its financial crisis. A company representative has assured that the situation is being rectified, with a spokesperson stating that all owed payments will be made. Meanwhile, sources close to Selena Gomez insist that the global superstar has invested millions into Wondermind over the years and immediately provided additional funding when alerted to the recent financial troubles, contradicting reports that Teefey needed to leverage her home.
“Selena has invested millions of dollars over the years into Wondermind to support her mother and their shared passion for mental health, including when she was alerted about the most recent financial setback, and immediately invested more money as she’s not involved in the day-to-day operations,” according to a source close to the situation.
The company has characterized its financial struggles as typical “growing pains” experienced by many startups. Wondermind continues to offer podcasts, newsletters, and essays focused on mental health issues, attempting to maintain its mission of destigmatizing mental health discussions despite its operational challenges. The disconnect between the company’s public-facing mission and its internal turmoil highlights the often complex realities behind celebrity-backed ventures in the competitive wellness industry.
A Billionaire’s Daughter and a Struggling Mission
The financial turbulence at Wondermind presents a stark contrast to founder Selena Gomez’s personal financial success. Gomez reached billionaire status in September 2024, primarily due to her highly successful Rare Beauty makeup brand, along with her singing and acting careers, real estate investments, and lucrative brand partnerships. This disparity raises questions about the level of involvement and oversight Gomez maintains in the mental health venture, especially given reports that she met with staff only once in three years—a claim her representatives deny.
“Like many startups, Wondermind has been working through its own set of growing pains,” stated an official Wondermind company statement.
The irony of a mental health-focused company creating significant stress for its own employees has not been lost on observers. While Wondermind promotes mental wellness through its content offerings, its reported failure to provide stable employment and timely compensation contradicts its public mission. As the company attempts to navigate this crisis, its ability to reconcile its financial realities with its stated values will likely determine whether it can regain credibility and continue its mental health advocacy work.
