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After the skateboard boom of the late 1980s had died, former Powell Peralta Pro Freestyle skateboarder Per Welinder wanted to stay involved with skateboarding by starting a company. Welinder had originally asked Powell Peralta pro skateboarder Lance Mountain to be his equal partner in the venture. Mountain declined as he only wanted to start a skateboard company if he had 100% ownership. Mountain later founded The Firm Skateboards (now defunct).

Welinder later asked another Powell Peralta pro skateboarder Tony Hawk to be 50-50 partners in this new skateboard company. Hawk gladly accepted as he felt his time in skateboarding was nearly over due to the lack of interest in vert skating caused by the popularity of street skating. Welinder and Hawk decided to name their new skateboard company Birdhouse Projects, Birdhouse being a reference to Hawk’s nick name Birdman

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