Founded in 2004 in Ann Arbor, Michigan by Jakub Alexander and Adam E. Hunt, the label began as an effort to popularize the founders' opinion that electronic music is a process, not a genre; within its walls live a diverse range of sounds, which would be documented over the course of the label's development.

The label has made use of the donation sales method popularized by Radiohead for their Limited and Premiere releases.

Moodgadet are partnered with The Orchard for distribution through online music retailers, including: iTunes, Amazon and Beatport.

They have also utilized the controversial technology BitTorrent, and it is their opinion that music is increasingly becoming a promotional tool for touring, merchandising and licensing.

Moodgadget has licensed music through Jeremy Peters and GHO (a subsidiary of Ghostly International) to LG, and Prada.