Luge Capital Closes $96 Million for Second Fintech-Focused Fund

Luge Capital has announced the successful closing of $96 million for Luge Capital Fund II, the firm’s second fintech-focused fund.

One year ago Luge announced a $71 million first close of the fund, with backing from CDPQ, Desjardins, BDC Capital, Sun Life, Industrial Alliance Financial Group (iA), Fonds de solidarité FTQ and Inovia Discovery Fund I.

New commitments in this closing come from Venture Ontario, Alberta Enterprise Corporation (AEC), AAF Management and other strategic LPs.

With this additional capital, the firm’s total assets under management has reached just over $180 million, across two funds.

Luge Capital’s second fund will continue the firm’s focus on investing in early-stage fintech startups across Canada and the US, building upon the successful track record of its first fund.

“Fintech makes up only 3% of the total financial services market with significant growth potential ahead. At $96M, this second fund for Luge is the next stage of our long-term roadmap to support the founders who are reshaping that market,” said Karim Gillani, General Partner at Luge.

“We’re thrilled to welcome Venture Ontario, AEC, and AAF to join us on our mission, alongside our other LPs.”

Luge has already made four investments from the second fund. One of which was Montreal-based inscora, which provides automated cyber risk assessment and sales enablement solutions for the insurance industry. The three other investments are expected to be announced shortly.

“Luge Fund II empowers us to further commit to fostering the next wave of fintech innovation,” said David Nault, General Partner at Luge.

“The role of fintech is critical, given the financial services sector’s significant role in our economies.”