Rainbow Arts was a German video game developer founded in 1984 in Gütersloh by Marc Ulrich which was later bought by Funsoft, and eventually absorbed by THQ in 1999. In the early 1990s most of the company's creative developers left to start their own development studios, such as Thomas Hertzler, who is now Managing Director of Blue-Byte, and Armin Gessert, who founded Spellbound Entertainment.