The label was founded in 1988 by Carol von Rautenkranz and Kolossale Jugend guitarist Pascal Fuhlbrügge, who together had already been organizing concerts in the post-NDW music scene of Hamburg for some time.

They were joined by Thorsten "Taucher" Weßel from the band Ostzonensuppenwürfelmachenkrebs, who later became a co-owner.

In 1994 Ladomat 2000 was launched by Charlotte Goltermann as a sublabel to also release electronic music.

Ladomat 2000 reflected this scene's growing interest in rave, techno and house music.

Tocotronic, Die Sterne and the house music project Whirlpool Productions reached some commercial success in the mid-nineties.