Selena Gomez's mental health start-up Wondermind is out of money
What's the story
Wondermind, the mental health start-up co-founded by singer Selena Gomez and her mother Mandy Teefey, is reportedly struggling financially.
Employees, freelancers, and vendors have not been paid since March, according to Forbes.
The Los Angeles-based company has about 15 staff members who produce mental health-related content (including articles, interviews, and podcasts) for its website.
The employees say that CEO Teefey told them on May 8 that she had taken a loan against her home to pay off company debts.
Response
Spokesperson addresses financial situation
Wondermind's spokesperson confirmed the financial situation in a statement to Forbes.
"Like many start-ups, Wondermind has been working through its own set of growing pains," they said.
The representative also assured all dues would be cleared by May 12.
"In the coming days, we will be transitioning into a new chapter for Wondermind, and continuing our important work in mental fitness that helps hundreds of thousands of people," added the spokesperson.
Company history
Wondermind's journey and financial challenges
Wondermind was founded in 2021 by Gomez, Teefey, and Newsette founder Daniella Pierson. Reportedly, the start-up was inspired by Gomez's own mental health struggles.
In 2022, Wondermind raised $5 million at a $100 million valuation in a Series A funding round led by Serena Williams's Serena Ventures, Sequoia Capital, Lightspeed Ventures, and billionaire Barry Sternlicht's family office.
However, Forbes reports that the company is now in dire financial trouble.
Company challenges
Unpaid dues and leadership changes
According to emails, recordings, and interviews with three employees cited by Forbes, Wondermind owes a PR firm around $60,000. Freelance writers are also owed "tens of thousands of dollars."
The issues reportedly started in January 2023 when co-CEO Pierson left the company.
Since then, Teefey has been leading alone while Gomez's involvement has been minimal despite her title as chief impact officer on the company's website.