Summary:
Wondermind, cofounded by Selena Gomez, faces a cash crunch with missed payrolls and unpaid vendors.
CEO Mandy Teefey took a loan against her home to cover debts, including unpaid freelancers.
The startup raised $5 million at a $100 million valuation in 2022 but struggles financially now.
Employees report minimal involvement from Gomez, despite her role as chief impact officer.
A promised Series B funding round remains unsecured, leaving employees unpaid and skeptical.
Wondermind, a mental health startup cofounded by Selena Gomez and her mother Mandy Teefey, is facing significant financial difficulties, including missed payrolls and unpaid vendors. Teefey has reportedly taken out a loan against her home to keep the company afloat.
The Financial Strain
- Wondermind missed payroll twice in recent weeks, leaving employees unpaid.
- Teefey's personal loan aims to cover outstanding debts, including unpaid freelancers and vendors owed tens to hundreds of thousands of dollars.
- A spokesperson claims the situation will be "rectified" by Monday, emphasizing the company's "growing pains."
The Backstory
Launched in 2021, Wondermind focuses on mental health content, inspired by the founders' personal struggles. Despite a $5 million Series A funding round in 2022 at a $100 million valuation, the company is now in dire straits.
Leadership Challenges
- Teefey became sole CEO in January 2023 after co-CEO Daniella Pierson exited.
- Employees criticize Teefey's operational decisions, including turning down a lucrative deal with Airbnb because it involved Gomez.
- Gomez, listed as chief impact officer, has minimal day-to-day involvement, according to employees.
Employee Concerns
- Healthcare benefits were abruptly terminated, forcing employees to elect into COBRA coverage.
- A promised $8 million Series B round has yet to materialize, with Teefey now suggesting it could reach $20-$30 million.
- Despite assurances, employees remain unpaid as of the latest updates, casting doubt on the company's future.
The Road Ahead
Teefey remains optimistic, citing ongoing negotiations for Series B funding. However, employees are skeptical, with one noting, "A new, big opportunity is always on the horizon but never comes."
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