Some of the most recognized artists that have been produced by Varney, or have featured on his labels, include Yngwie Malmsteen, Victor Wooten, Eric Johnson, John Scofield, Dennis Chambers, Warren Haynes, Scott Henderson, Stuart Hamm, Tony MacAlpine, Eric Gales, Marty Friedman, Jason Becker, Steve Smith, Greg Howe, Liquid Tension Experiment, Doug Pinnick, Mike Portnoy, Great White, Paul Gilbert, Michael Landau, Mike Stern, Winger, W.A.S.P., Steeler and Racer X.

Mike Varney grew up in Novato, California, USA, a city located in the North Bay region of the San Francisco Bay Area. Prior to forming Shrapnel Records, Mike Varney played extensively with the pre-punk San Francisco band, The Nuns. The Nuns was one of the most successful bands in the Bay Area at that time, regularly selling out at the local venues and clubs. He co-wrote and performed "Rock Justice" along with Jefferson Airplane and Jefferson Starship's Marty Balin, released by EMI in 1980. Varney also led his own band, Cinema, which received wide recognition in the San Francisco Bay Area. Mike was known for searing lead guitar runs performed on his collection of Gibson SG guitars. He also began his meticulous collection of the world's most extensive LP-record collections of hard rock and heavy metal music, which now includes over 40,000 LPs and CDs.

In the mid-1980s, Mike's elder brother Mark Varney established Legato Records—a jazz fusion-orientated counterpart to Shrapnel. Among their most prominent releases were some of Frank Gambale's early work, as well as two collaboration albums (Truth in Shredding in 1990 and Centrifugal Funk in 1991) under the title of The Mark Varney Project. Other releases included the Guitar on the Edge series of compilation albums (1992–94), which was a four-volume showcase featuring many up-and-coming guitarists at the time such as Greg Howe (who would later go on to release the majority of his discography on Shrapnel), Brett Garsed, T. J. Helmerich, Blues Saraceno, and others.

Mike Varney became the authority on Novato guitar talent in the late 1970s and early 1980s including artists Bob Gilles, Greg Strong, and Dan Meblin, who eventually recorded in some capacity with Shrapnel Records. Other talent from Novato during that period included Guitar Player Magazine editor Matt Blackett, Pat Gilles, Tom Watson, Joe Basso, and Chris Reed.

Shrapnel Records was founded in 1980 by Mike Varney at the age of 22. It was the first record company in the USA strictly dedicated to Heavy Metal. As other labels followed suit, Shrapnel set itself apart from the pack by focusing on bands featuring guitarists of extraordinary ability and was at the forefront of the neo-classical electric guitar and shred movements. Shrapnel Records was the first label to bring renowned guitarists to world attention such as Yngwie Malmsteen (Steeler), Marty Friedman, Jason Becker, Paul Gilbert, Racer X, Tony MacAlpine, Vinnie Moore, Greg Howe, Richie Kotzen, John5 and many others. Today Shrapnel continues to record guitarists of extraordinary ability and has also returned, in part, to its metal roots in releasing some classic metal and hard rock records due to a resurgent market interest.

Mike Varney began his Spotlight Column in Guitar Player Magazine in 1982 as a vehicle for discovering preeminent talent among the magazine's readership. His monthly column featured many so-called hometown heroes who sent in demo to showcase their abilities. Several players who were featured received opportunities to record with Shrapnel Records.

Blues Bureau International, founded in 1991, is a label that has focused its attention on the blues rock genre. Through the years the label has recorded many artists including nine Pat Travers records, four Rick Derringer records, as well as records by other rock blues artists such as Eric Gales, Scott Henderson, Glenn Hughes, Jon Butcher, Neal Schon, The Outlaws, Joe Louis Walker, etc. The label continues to record artists in the electric blues style.

Tone Center Records, founded in 1997, is an independent record company owned by music industry veteran Mike Varney, dedicated to recording high level, jazz, jazz/rock and fusion music. The roster is made up of some the most well known names in the instrumental jazz/rock/fusion world. This artist roster includes Eric Johnson, Warren Haynes, Steve Morse, Victor Wooten, Mike Stern, and others (see artist list below).

Mike Varney began collecting recordings Prior to the beginning of his career in 1980. His current collection includes over 40,000 LPs and CDs, extensively covering the hard rock, metal, progressive rock, blues-rock and jazz-fusion genres and sub-genres.