Billionaire Selena Gomez’s mental health startup Wondermind failed to pay its employees and vendors for months, forcing her mother Mandy Teefey to take out a personal loan against her home to cover the mounting debts.
Key Takeaways
- Wondermind, co-founded by Selena Gomez and her mother Mandy Teefey, faced significant financial difficulties, missing employee payrolls and accumulating “hundreds of thousands” in debt to freelancers and vendors.
- Mandy Teefey reportedly took out a loan against her personal home to pay company debts, though Gomez later invested more money after learning of the financial troubles.
- The company’s financial issues allegedly began in January 2023 when Teefey became sole CEO, with employees claiming she lacked business leadership skills.
- Despite being valued at $100 million after securing $5 million in funding in 2022, the company terminated employee health benefits in March 2025 amid its financial crisis.
- A Wondermind spokesperson claims the financial situation “has been rectified” and all owed payments will be made as the company experiences “typical startup growing pains.”
Financial Crisis at Mental Health Startup
Wondermind, the mental health startup co-founded by Selena Gomez, her mother Mandy Teefey, and Daniella Pierson in 2021, has been struggling to meet its financial obligations. The company, which secured $5 million in funding in 2022 with a valuation of $100 million, reportedly missed multiple payroll cycles and accumulated significant debt to freelancers and vendors. According to reports, the company’s approximately 15 employees received compensation for only one of two missed paychecks, while freelancers and vendors are owed “hundreds of thousands” in unpaid invoices.
The situation deteriorated to the point where employee health benefits were terminated in March, with staff being advised to opt for COBRA coverage to maintain their insurance. Among the unpaid vendors is a PR firm reportedly owed approximately $60,000. These financial troubles appear particularly ironic for a company focused on mental wellness, as the stress of missed paychecks likely created anxiety for the very employees working to address mental health issues in the broader population.
Controversial Leadership and Management Issues
Sources close to the situation point to January 2023 as the beginning of Wondermind’s financial troubles, coinciding with Mandy Teefey assuming the role of sole CEO. Former employees have alleged that Teefey lacked the necessary business acumen to lead the company effectively. Some staff members claimed that Gomez only met with employees once in three years, suggesting limited involvement in day-to-day operations, though a company spokesperson has denied this assertion.
“Like many startups, Wondermind has been working through its own set of growing pains,” stated Wondermind
Another point of contention involves Teefey allegedly turning down brand deals that would have involved her daughter, potentially costing the company valuable revenue opportunities.However, Emma Wright, Wondermind’s chief of staff, defended Teefey’s leadership, stating,
“She has been singularly focused on keeping everyone’s livelihoods intact and keeping the company growing,” said Emma Wright
Financial Rescue Attempts
When the financial crisis reached a breaking point, Teefey reportedly took out a loan against her home to cover the company’s debts. In an email to staff during this period, Teefey wrote, “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 Teefey. This personal financial sacrifice by Teefey has drawn attention, particularly given that her daughter Selena Gomez reached billionaire status in September 2024, largely due to her successful Rare Beauty makeup brand.
“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,” a source told people.
However, some sources have disputed the loan story, claiming that Gomez herself stepped in with additional funding after learning about the financial issues. The company has stated that the situation “has been rectified” and all owed payments will be made. Despite the current challenges, Wondermind has indicated plans to transition into a “new chapter” while continuing its mission of providing mental health resources and reducing stigma around mental wellness.
The Irony of Mental Health Advocacy Amid Internal Stress
The financial troubles at Wondermind highlight a concerning contradiction: a company dedicated to mental health advocacy that created significant stress for its own employees through missed paychecks and terminated health benefits. This disconnect between the company’s public mission and internal practices raises questions about its ability to authentically advocate for mental wellness. While Wondermind offers podcasts, newsletters, and essays aimed at reducing stigma around mental health issues, its own management practices apparently contributed to anxiety and financial insecurity among staff.
“To invest in the future of the company, Mandy has chosen to take the lead here with a personal loan to invest in the future of the company,” a source reported.
The situation also exposes the reality that celebrity-founded startups face the same financial challenges as other businesses, regardless of their famous backers. Despite Gomez’s estimated $1.3 billion net worth and the company’s initial $100 million valuation, Wondermind still struggled with basic financial obligations like making payroll and maintaining vendor relationships. This serves as a reminder that good intentions and celebrity endorsements cannot substitute for sound business management and financial planning, particularly in the competitive startup landscape.
