Selena Gomez's mental health startup faces financial crisis as workers go unpaid

Los Angeles, California - New details have been revealed about the reported financial crisis at Selena Gomez's mental health startup, Wondermind.

Reports allege Mandy Teefey (l.) took out a loan against her home to pay the employees at her and daughter Selena Gomez's mental health startup, Wondermind.
Reports allege Mandy Teefey (l.) took out a loan against her home to pay the employees at her and daughter Selena Gomez's mental health startup, Wondermind.  © IMAGO / Runway Manhattan

As Forbes reported over the weekend, the 32-year-old star's mom Mandy Teefey – who serves as CEO of Wondermind – was forced to take out a loan against her home in order to pay the company's employees.

Sources told the outlet that workers have now received one out of their two missing paychecks, while vendors and freelancers are still owed "hundreds of thousands," and an estimated $60,000 is owed to a PR firm.

Rumors of a crisis at Wondermind began in March when employees were informed that they would be losing their health benefits, forcing them to enroll in COBRA coverage while the company continued efforts to secure more funding.

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A spokesperson for the company confirmed that the payment issues had been "rectified," telling Forbes in a statement, "Like many startups, Wondermind has been working through its own set of growing pains."

Wondermind is described as the "first mental fitness ecosystem" and offers articles, podcasts, and more on the topic of mental health.

Following Forbes' report, another insider told People that the claims of Teefey taking out a loan were not true, noting that it was Gomez – who is Wondermind's CIO – who stepped in to manage the crisis.

Selena Gomez steps in to help Wondermind amid financial struggles

Selena Gomez has used her business ventures to promote mental health advocacy and the resources, including through her billion-dollar Rare Beauty brand.
Selena Gomez has used her business ventures to promote mental health advocacy and the resources, including through her billion-dollar Rare Beauty brand.  © IMAGO / Cinema Publishers Collection

"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," the source explained.

"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."

Gomez reached billionaire status last year, largely through her hit cosmetics brand Rare Beauty.

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The company also holds a connection to the Emilia Pérez star's mental health advocacy, as 1% of all sales are donated to the Rare Beauty Impact Fund, which promotes the accessibility of mental health resources.

Rare Beauty is committed to raising $100 million for the fund over a ten-year span, which began when it was founded in 2020.

Cover photo: IMAGO / Cinema Publishers Collection

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