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NEED TO KNOW
- Selena Gomez “immediately invested more money” into Wondermind, the mental-health media company she co-founded with her mother Mandy Teefey in 2021, when she learned of recent “financial setbacks,” a source tells PEOPLE
- The new insight comes as Forbes reports that Teefey, the company’s CEO, told employees she was taking out a loan in response to outstanding debts, which included missed paychecks
- Gomez teamed up with her mother and Newsette founder Daniella Pierson to launch Wondermind in 2021
Amid reports of financial concerns at Wondermind — the mental-health startup co-founded by Selena Gomez and her mother Mandy Teefey — a source is shedding light on what’s happening behind the scenes.
On Saturday, May 10, Forbes reported that Teefey, the company’s CEO, told employees earlier this week that she took out a loan against her home to pay back the company’s outstanding debts. Those debts, per the outlet, included employees missing a recent paycheck, while freelancers and vendors awaited unpaid funds.
A source now tells PEOPLE exclusively that it is not true that Teefey, 49, took out a loan to pay the salaries, adding that Gomez, 32, took action when she first learned of the issue late last week.
“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 tells PEOPLE.
“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 Wondermind spokesperson told Forbes that the company has “rectified” the situation and everyone who is owed money will receive it on Monday.
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“Like many startups, Wondermind has been working through its own set of growing pains,” the spokesperson told Forbes, adding that “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.”
The outlet reported on Saturday that the company — which the pair founded in December 2021 to give people a safe space online to talk about their mental health struggles — ran out of funds to pay its roughly 15 employees, freelancers and other vendors. According to Forbes, the company secured $5 million in funding in 2022 at a $100 million valuation.
Employees also claimed that Gomez, who is listed as chief impact officer on the company’s website, only met with staff once in three years — which a company spokesperson told Forbes was “absolutely not true.”
Gomez teamed up with her mother and Newsette founder Daniella Pierson to launch Wondermind in 2021, sharing their vision for an online platform dedicated to reducing the stigmatization surrounding mental health.
The outlet offers podcasts, newsletters, essays and more on the subject, with Gomez telling Entreprenuer in 2021 that she hoped the media company would serve as a light in the darkness.
“Something I’ve always tried to do in my career is make sure I lend my voice to places where it matters,” Gomez told Entrepreneur. “And I have to give my mom credit for that because she taught me everything.”
