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 Forbes.

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.

What are the allegations against Selena Gomez’s mother’s startup?

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 Forbes 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.

The report added that Teefey declined to comment, and Selena Gomez’s spokesperson did not respond to Forbes’ queries, but 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).

About Wondermind: Celebrity Startup to Financial Troubles

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.

Forbes however cited emails, recordings and interviews with three employees to report that the startup “seems to be in dire financial straits”

Two employees told the publication, 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.

They added that Selena Gomez is not active at Wondermind. On the company website, she is listed as the chief impact officer.