Although, Giant Step Records released a Gilles Peterson compilation with Epic Records, they ventually grew frustrated with having an imprint deal. Corporate management denied their requests to sign artists like India Arie and Donnie, and so in 2000, Giant Step decided to start their own label.
With money received from Epic, Giant step started work on a series of tracks with singer, Donnie, that would eventually become the album, Welcome to the Colored Section. Steve "The Scotman" Harvey was enlisted as the producer. Welcome to the Colored Section was called "the best soul record since Stevie Wonder's masterpieces of the 1970s," by the Boston Globe. The independent success of Welcome to the Colored Section, brought a joint venture with Motown Records and private investment into the label. Giant Step has also released albums for Carl Hancock, Gilles Peterson, Turntables on the Hudson, Ultra Nate, Zero 7, Jody Watley, Donnie, Sara Devine, Jiva and Zap Mama.