Wondermind, a mental health startup co-founded by Selena Gomez, has laid off 60% of its staff, resulting in nine employees losing their jobs.

The layoffs took place on May 12, 2025, as the company faces reported financial difficulties.

Affected employees were informed they would be compensated through May 12, 2025 and would receive two weeks of severance pay.

A missing paycheck from April 30 was issued on the same day, but staff members are still awaiting reimbursement for health insurance premiums paid in the previous month.

Founded in 2019 by Gomez, her mother Mandy Teefey, and Daniella Pierson, Wondermind produces mental health content, including articles, podcasts, and interviews.

🔗 Source: Forbes

🧠 Food for thought

1️⃣ Celebrity-founded startups often struggle with the valuation-operation gap

Wondermind’s journey highlights a recurring pattern in celebrity-founded startups: inflated valuations that don’t align with operational capabilities.

The company secured a $100 million valuation despite having minimal revenue, demonstrating how celebrity association can dramatically influence investor perception beyond traditional business metrics 1.

This valuation premium creates unsustainable expectations, as seen in Wondermind’s inability to close subsequent funding rounds since 2023 despite its high-profile backing from Serena Williams and other notable investors 2.

The company’s failure to pay employees while being valued at $100 million demonstrates the disconnect that can exist between paper valuations and operational reality in celebrity-attached ventures.

This pattern is not unique to Wondermind, as celebrity-backed startups often struggle to translate initial funding success into sustainable operations when the founding celebrity isn’t deeply involved in daily management.

2️⃣ Family business dynamics create unique governance challenges in startups

The mother-daughter leadership structure at Wondermind illustrates how personal relationships can complicate startup governance and accountability.

Mandy Teefey, as CEO and Gomez’s mother, took on significant personal financial risk by securing a loan against her home to cover company expenses, blurring the lines between personal and business finances 3.