Luge Capital announced the successful closing of $96 million for Luge Capital Fund II, which is the firm’s second fintech-focused fund. And Luge previously 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. The new commitments in the closing are from Venture Ontario, Alberta Enterprise Corporation (AEC), AAF Management, and other strategic LPs.
With this additional funding, the firm’s total assets under management have reached just over $180 million across two funds. And Luge Capital’s second fund will continue its focus on investing in early-stage fintech startups across Canada and the US, building upon the successful track record of its first fund.
Luge 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 also expanded the team with the appointment of Ha Duong as VP Finance and Operations, leveraging his decade-long experience in a leading venture capital fund. And the firm is also actively seeking an Alberta-based investment team member to help extend its reach in other geographies.
KEY QUOTES:
“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. We’re thrilled to welcome Venture Ontario, AEC, and AAF to join us on our mission, alongside our other LPs.”
-Karim Gillani, General Partner at Luge
“Luge Fund II empowers us to further commit to fostering the next wave of fintech innovation. The role of fintech is critical, given the financial services sector’s significant role in our economies.”
-David Nault, General Partner at Luge
“We’re strong supporters of Luge’s vision. Ontario is recognized as a key global fintech hub and home to some of the sector’s most innovative start-ups. The Luge team has a unique ability to identify high-potential companies and support them in becoming global leaders. We’re excited about this partnership and look forward to working closely with them.”
-Steve Romanyshyn, President and Chief Executive Officer at Venture Ontario
“We warmly welcome Luge Capital to the Alberta venture capital community. Their expertise and focus on fintech present a fantastic opportunity for collaboration and growth within our burgeoning tech sector. We’re eager to witness the positive impact they’ll have on local startups and the broader economy.”
-Kristina Williams, CEO at Alberta Enterprise Corporation
