The label was founded by German actor and singer Herbert Grönemeyer in connection with an eight-CD box set called Pop 2000. The CD box set and its companion TV series were designed to document music culture in Germany over the course of the 20th century and featured artists such as Neu!, Faust, Kraftwerk, The Notwist and Mouse on Mars.

Grönland’s philosophy is that business decisions should be influenced not by marketing strategies, but by the musician and his craft. Without sacrificing attention to the economic aspects of the label’s survival, Grönland, with its small staff and optimal structure, is committed to providing an environment where art and music are free to grow, and to giving full support and attention to its musicians on a level rarely seen in larger record companies. Consequently, Grönland only signs a maximum of six to eight bands and projects per year