In 2005, after recuperating from the bankruptcy of his "Big Idea", Big Idea founder Phil Vischer decided to form a new studio this time, as he says, "Run by God." Phil said in his autobiography Me Myself and Bob that he decided to form a new studio where it is run by God's will as opposed to Phil's ambition. Phil said that he realized he had not allowed God to direct his career while working as Big Idea's CEO and decided to form a studio where he allowed God to lead him and his career. Phil created Jellyfish Labs, located a few miles from Big Idea Productions.
The name, "Jellyfish" was picked because, jellyfish do not move for themselves and count on the current to direct them to where they go. Phil sees it the same way with his new studio and allows God to direct and lead the studio.
In 2008, Phil Vischer & Jellyfish Labs founded JellyTelly, a website that produces faith-based projects such as, "Buck Denver asks, "What's in the Bible?"" amongst other faith projects.