Luge Capital raises C$71m in first close of second fintech fund

• Luge Capital Fund II is targeting C$100 million
• LPs committing to Fund II include returning investors Caisse de dépôt et placement du Québec, Desjardins Group, BDC Capital, Sun Life Financial, Industrial Alliance Financial Group and Fonds de solidarité FTQ
• New investor Inovia Discovery Fund I, managed by Inovia Capital, also participated

Canadian venture capital firm Luge Capital has secured C$71 million in the first close of its second early-stage financial technology fund. Luge Capital Fund II is targeting C$100 million.

LPs committing to Fund II include returning investors Caisse de dépôt et placement du Québec, Desjardins Group, BDC Capital, Sun Life Financial, Industrial Alliance Financial Group and Fonds de solidarité FTQ. New investor Inovia Discovery Fund I, managed by Inovia Capital, also participated.

Fund II will continue to invest in early-stage fintech technology startups in Canada and the US. In addition to the core investment thesis from its first fund, Luge is expanding its scope of investments to include verticalized fintech startups that operate at the intersection of financial services and other large industries, as well as fintech-oriented environmental, social, and governance (ESG) startups.

Luge, which has offices in Montreal and Toronto, was founded in 2018 by general partners David Nault and Karim Gillani.

“Financial services impact the lives of every person, from opening a bank account and making payments to buying insurance and making investments. Yet large institutions are finding it challenging to modernize their legacy technology,” said Gillani in a statement. “By investing in high-calibre fintech founders who are solving the industry’s biggest problems, Luge is helping to drive innovation across the financial services that are the lifeblood of the economy and account for 20 percent of the GDP in the US and in Canada.”

Luge invested in 21 companies from the C$85 million Luge Fund I. Notable investments include Flinks (acquired by National Bank of Canada in 2021), Plooto, Owl, Flare and OneVest.