Wondermind, the mental health platform co-founded by Selena Gomez, is allegedly running out of money. The Los Angeles-based company creates features, profiles, and podcasts. Its rumored dysfunction has led to multiple missed payrolls and unpaid obligations to its employees, contractors, vendors, and freelancers. The company raised a $5 million Series A funding round during 2022, before moving toward a Series B investment. Despite those successes, it has continued to face significant fiscal woes. Mandy Teefey, Gomez’s mother, has been the only CEO since January 2023. To pay off those debts, she has apparently already mortgaged her house.

In 2021, Mandy Teefey, Selena Gomez, and Daniella Pierson founded Wondermind. Their purpose was to create a safe space, foster community and connection, and promote productive, stigma-free conversations about mental health. The online platform publishes personal stories, photo essays, articles, video interviews, and podcasts—all aimed at eradicating stigma and creating positive conversations about mental health.

In June 2022, Wondermind raised $5 million in a Series A funding round, which gave the company a $100 million valuation. The funding round was led by Serena Ventures, the venture capital firm founded by tennis legend Serena Williams. Sequoia Capital, Lightspeed Ventures, and Barry Sternlicht’s family office joined. Later that year, Wondermind closed a successful $8 million Series B investment round. At first, they had planned for the round to go up to $20-$30 million, but…

According to new reporting, Wondermind has been struggling with fiscal issues. These challenges have led to notable missed payrolls and still-ongoing payment issues for employees, vendors, and freelance creatives. Unpaid freelance writers are currently prospecting claims for tens of thousands of dollars. Almost all of their invoices have been unpaid for longer than three months. On top of that, the company allegedly owes $60,000 to a PR firm to which it had once retainered.

That changed in January 2023, when Mandy Teefey became sole CEO after Daniella Pierson—co-CEO and co-founder—exited. Gomez, despite her high profile and estimated $700 million net worth, does not maintain an active operational role within Wondermind. The company currently employs approximately 15 individuals.

In negotiations with Republicans, Mandy Teefey moved to close such financial gaps. She’s said to have taken a personal loan on her house to pay off the company’s debts. Wondermind recently claimed they’ve “remedied” the matter. They’re hoping to be sure that all the people owed money get paid by Monday.

"I'm a bit concerned about when I send out assignments, I don't know if they're going to be…" - Employee

Even in the face of difficulties, some staff members still have faith in Teefey’s dedication to the company’s original mission.

Other staff have criticized Gomez’s lack of initiative when it comes to raising awareness about the platform.

"For what it's worth, I think Mandy believes in this company to a fault" - Employee

However, other employees have voiced concerns about Gomez's limited involvement in promoting the platform.

"We have to fight with her agent to get her to do anything for us and she rarely does. And by 'do anything' I mean post something on Instagram or interview her for an article so it does good traffic" - Employee

Emma Wright defends Teefey's leadership.

"I've just seen someone who has led with just pure grace" - Emma Wright

"People who might have that opinion might not know what happens behind the scenes of negotiations" - Emma Wright

A company spokesperson acknowledged the difficulties Wondermind has been facing.

"Like many startups, Wondermind has been working through its own set of growing pains" - Company spokesperson

Selena Gomez once spoke about the origins of Wondermind.

"It honestly stemmed from a conversation we both had with each other and it was about our journeys and we ended up relating a lot to each other and it was a turning point" - Selena Gomez