Why We Invested in Holey Grail, A Delicious Disruptor of the Donut Industry

Forget what you think you know about donuts — we’re thrilled to announce our investment in Holey Grail, a company not just filling a “hole” in the market, but carving out a new category: healthier, sustainably sourced, and decidedly delicious donuts. This is an ideal fit for our thesis of investing in innovative consumer companies that cultivate joy and well-being.

In a global market estimated at $207 billion, with the U.S. market alone projected to reach $5.1 billion and grow at a healthy 7–8% annually, Holey Grail is poised to capture the hearts (and stomachs) of consumers. Holey Grail appeals to the consumer who demands healthier options, ethical sourcing, and unique culinary experiences.

A trifecta of innovation sets Holey Grail apart:

• Healthier Indulgence: Holey Grail uses taro and coconut oil, resulting in donuts that are lighter, easier to digest, and contain about one-third less sugar and fewer calories than traditional donuts.
• Sustainability and Efficiency: Their taro is regeneratively farmed in Hawaii, minimizing environmental impact. Combining that with an efficient made-to-order approach (no more mountains of thrown-away stale donuts!) greatly reduces waste and the company’s impact on the planet.
• Consistent Creativity: Holey Grail’s rotating menu features creative collaborations with influencers like Tony Hawk and Karrueche Tran has proven very effective at attracting new customers, serving as powerful drivers of customer acquisition and brand loyalty.

Behind this innovative brand is a team with deep industry expertise. Co-founder and CEO Nile Dreiling brings over a decade of donut experience, starting the business as a food truck. Co-founder and CBO Hana Dreiling, a former celebrity chef with ten years of experience in Hawaiian agriculture and culinary arts, ensures product quality and brand vision. And COO Anthony Fassio, with a background that includes leadership roles at Salt & Straw, Dig, SunLife Organics, and the Natural Gourmet Institute, brings a wealth of operational and health food expertise.

The name “Holey Grail” itself resonates with powerful symbolism. Evoking both Hawaiian heritage and the pursuit of perfection, it encapsulates the brand’s commitment to quality and the unique experience it offers. As the only multi-unit, globally recognized Hawaiian donut business, Holey Grail benefits from the positive associations consumers have with the islands, creating a strong foundation for brand loyalty.

Great traction, a growing market, and a clear product-market fit make Holey Grail one of the most promising consumer companies we’ve seen this year; their vision extends beyond donuts, with plans to leverage their Hawaiian ingredient supply chain to expand into new product categories, making the investment an even more promising recipe for success.

By Investment Partner Shunya Tachibana

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