Luge Capital Raises $71 Million In Its Second Funding Round

Luge Capital, a venture capital fund focusing on fintechs, has secured an initial $71 million. The funds will invest in early-stage startups across Canada and the United States.

Luge Capital Secures A $71M Raise

Luge Capital has invested across 21 companies following an earlier $85 million funding round for Luge Fund I. Some companies that Luge invested in at the time include Flinks, which the National Bank of Canada, Plooto, Flare, OneVest, and Owl acquired.

In this second funding round, Luge Capital planned to hit a $100 million fund size. The funding round has been marked by some returning investors such as BDC Capital, CDPQ, BDC Capital, Sun Life, Industrial Alliance Financial Group (iA), Desjardins, and Fonds de solidarite.

The funding round also saw the participation of a new investor, Inovia Discovery Fund I. The recent funding round will support the core investment thesis that Luge Capital secured from its first fund.

Luge Capital is also expanding its offerings to include fintech startup companies that provide financial services and support large industries. The other firms that Luge Capital is looking to invest in include fintech-oriented ESG startups.

The initial investments made from the second funding round are expected to be significantly higher than those made from the first. The funding will see these companies expanding their available offering and delivering value.

Supporting The Financial Service Industry

The general partner at Luge Capital, Karin Gillani, noted that financial services affected the lives of nearly every person. The financial service industry involved minor processes like creating bank accounts and other processes like purchasing insurance covers and securing strategic investments.

Despite the obvious benefits posed by the financial service industry, large institutions found it extremely challenging to modernize their legacy technology. Therefore, this industry was well-positioned to grow if it obtained the financial support it needed.

Gillani also noted that Luge Capital solved some of the industry’s largest problems by investing in high-caliber fintech founders. These offerings are aimed at helping Luge Capital derive much value from its investments.

“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,” Gillani said.