The spotlight shines bright on Selena Gomez, the beloved pop sensation turned mental health advocate. Her startup, Wondermind, aims to prioritize self-care and emotional well-being. But behind the curtains, a different narrative unfolds. Allegations are swirling that Wondermind isn’t paying its employees, leaving many feeling betrayed and disillusioned. As the drama unfolds, one voice has remained conspicuously silent – Selena’s mother, Mandy Teefey. Until now. In a surprising turn of events, she’s speaking out, shedding light on the controversy that’s been making headlines. What does Mandy have to say about the allegations, and what does this mean for the future of Wondermind? The plot thickens, and we’re about to find out.
The Allegations Against Wondermind
Employees, freelancers, and vendors of Wondermind, the mental health startup co-founded by singer and businesswoman Selena Gomez and her mother Mandy Teefey, have complained of non-payment of dues since March, according to a report by Unionjournalism.
The 32-year-old singer-actor is among the richest self-made entrepreneurs in the US, largely through her makeup brand Rare Beauty. She is estimated to have $700 million, while Rare (founded in 2020), made revenue of close to $370 million in 2023.
Non-payment of dues since March: What employees and freelancers are saying
The startup, based in Los Angeles, has around 15 staff who publish articles, interviews and podcasts around mental health on its website, who had not been paid since late March, it added.
Employees told Unionjournalism that CEO Teefey on May 8 told them that she had taken out a loan against her home to pay back company debts.
While one paycheque has been disbursed, one more running into at least thousands of dollars, is still pending, they added.
Financial troubles: A look at the startup’s financial struggles and debts
Forbes cited emails, recordings and interviews with three employees to report that the startup “seems to be in dire financial straits.”
Two employees told Unionjournalism that Wondermind owes a PR firm around $60,000; while one said another “tens of thousands of dollars” are also owed to freelance writers.
Two employees also said troubles began in January 2023 after co-CEO Pierson left the company and Teefey took sole charge.
The Response from Wondermind and Mandy Teefey
The CEO’s loan against her home to pay back company debts has raised several questions about the startup’s financial health.
The CEO’s loan against her home to pay back company debts
Employees told Unionjournalism that CEO Teefey on May 8 told them that she had taken out a loan against her home to pay back company debts.
The spokesperson’s statement: What it means for the employees and freelancers
A representative for Wondermind responded saying that the situation is rectified.
“Like many startups, Wondermind has been working through its own set of growing pains. 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 spokesperson said.
They added that dues will be paid by Monday (May 12).
The Background of Wondermind
Wondermind was founded in 2021 by Selena Gomez, mother Mandy Teefey, and Daniella Pierson (founder and CEO of The Newsette, a women-centric newsletter), Wondermind was reportedly inspired by the millionaire singer-businesswoman’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’ Serena Ventures, Sequoia Capital, Lightspeed Ventures and billionaire Barry Sternlicht’s family office.
The Vision Behind Wondermind
Selena Gomez, her mother Mandy Teefey, and Daniella Pierson founded Wondermind in 2021, with a vision to create a space for mental health discussions. The startup was reportedly inspired by Selena Gomez’s own mental health struggles.
Wondermind raised $5 million at a $100 million valuation in a Series A funding round led by Serena Williams’ Serena Ventures, Sequoia Capital, Lightspeed Ventures, and billionaire Barry Sternlicht’s family office in 2022.
The Financial Struggles of Co-CEO Daniella Pierson’s Departure
Troubles That Began in January 2023
Employees told Unionjournalism that troubles began in January 2023 after co-CEO Pierson left, and Teefey took sole charge of the company.
Impact on Freelance Writers and PR Firms
Two employees told Unionjournalism that Wondermind owes a PR firm around $60,000. Another employee said that tens of thousands of dollars are also owed to freelance writers.
These outstanding debts have caused significant financial strain on the freelancers and vendors, who have not been paid since March.
The Implications for Selena Gomez and Her Brand
Impact on Her Reputation as a Businesswoman and Philanthropist
This financial struggle has significant implications for Selena Gomez’s reputation as a businesswoman and philanthropist. As a UNICEF Goodwill Ambassador, Selena Gomez advocates for mental health, gender, and racial equality.
Her reputation as a successful entrepreneur, with an estimated net worth of $700 million, largely through her makeup brand Rare Beauty, which made revenue of close to $370 million in 2023, is also at stake.
What This Means for Her Other Ventures
This financial struggle raises questions about the financial stability of her other ventures, including Rare Beauty.
As a producer, she has received acclaim for her work on 13 Reasons Why and Only Murders in the Building. Her music, including hits like “Come & Get It” and “Lose You to Love Me,” continues to captivate global audiences.
Conclusion
As we conclude our examination of the controversy surrounding Selena Gomez’s mental health startup, Wondermind, and its alleged failure to pay employees, it is clear that the issue raises pressing questions about accountability and corporate responsibility. According to Mandy Teefey, Selena Gomez’s mother, the situation is a stark reminder that even well-intentioned ventures can falter when it comes to their treatment of employees. The article highlights the key points of the controversy, including Teefey’s claims of unpaid wages and the lack of transparency surrounding the company’s financial dealings.
The significance of this topic cannot be overstated, as it speaks to the broader issue of corporate accountability and the need for greater transparency in the business world. The fact that a high-profile entrepreneur such as Selena Gomez, who has used her platform to advocate for mental health awareness, is accused of neglecting the well-being of her employees is a particularly egregious example of this issue. As the business world continues to evolve, it is essential that companies prioritize their employees’ needs and rights, rather than prioritizing profits above all else.
The future implications of this controversy are far-reaching, with potential repercussions for the business world and the mental health community. As consumers become increasingly aware of the importance of corporate accountability, companies that fail to prioritize their employees’ well-being will face increasing scrutiny and potential backlash. In the end, the success of Wondermind and its commitment to mental health initiatives will be judged not just by its impact on the community, but by its treatment of its employees. One thing is clear: the business world must do better, and it is time for accountability to be the guiding principle of corporate decision-making.