In 1997, three students from the Applied Physics and Electrical Engineering programme at Linköping Institute of Technology, took part in an industry/university collaboration project. Together with the automotive lighting company Nordisk Bilbelysning NBB, they developed a prototype for a free-form reflector design tool. The project was very successful and the company Orbital Technologies was formed to productify the concept.

The fruitful collaboration with the automotive industry led to the development of other products within the field. At the same time, the business scope was broadened to include other high-tech industries and consulting in software development as well.

Four years after the founding, the enterprise was converted to a joint-stock company and in conjunction with that the name was changed to Spellbound Software. Focus continued and still remains on advanced software development for high-tech applications. Today Spellbound has its seat in Stockholm and is run by two of the founders.