Grapewire was founded by visionary artist Einar Örn of Sugarcubes/Ghostigital fame and software developer Egill Erlendsson with funds from artists including Damon Albarn, Mugison and Kjartan of Sigur Rós, members of Bad Taste, Smekkleysa and other independent record labels. In 2009, The Icelandic Venture Fund and Francesca Von Habsburg invested in the growth phase of the company.