The studio was founded in 2007 by Gregg Hargrove and Jools Watsham, video game development veterans formerly of Iguana Entertainment.

Prior to founding Renegade Kid, Gregg Hargrove and Jools Watsham had been working together for 12–13 years, starting at Iguana Entertainment.

[3][4] The studio's first game, Dementium: The Ward, was announced on March 5, 2007, and found Gamecock Media Group as its publisher by June.

Renegade Kid rejected the deal and, from that point on, turned its business model entirely to indie game development.

The intellectual property rights were divided between the companies set up by Hargrove and Watsham independently: Atooi, founded by Watsham in 2015, obtained the rights for Renegade Kid's two-dimensional games (including Mutant Mudds and the then-in-development Treasurenauts), while Infitizmo, which was established in 2016 by Hargrove, received the three-dimensional titles (including Dementium and Moon Chronicles).