The Iconfactory began in June of 1996 as a hobby between its three founding members: Corey Marion, Talos Tsui and Gedeon Maheux. All three were working for a small multimedia company called Paradigm Interactive designing educational CD-ROMs for children.
Part of the work at Paradigm involved creating icons. The guys found they enjoyed icon design and started pushing pixels on their own time for fun. Small, freelance icon jobs gradually grew into full fledged contract work for major software companies. Our lead developer, Craig Hockenberry, joined in 1997, and Dave Brasgalla joined in 2000, the same year that the Iconfactory incorporated. The rest, as they say, is history.
Source: The Developer Website.