Canada-based venture capital fund Luge Capital has raised C$75m ($58m) for its debut fund from investors including insurance providers Sun Life Financial and La Capitale, the Globe and Mail reported today.
Quebec government-owned development capital organisation Fonds de solidarité FTQ also contributed to the latest C$25m tranche.
The fund was launched in October 2017 with a C$25m commitment each from financial services group Desjardins and state-owned pension manager Caisse de dépôt et placement du Québec. Luge may seek an additional C$25m in the coming months.
Luge is the brainchild of Pierre Miron, executive vice-president and chief operations and IT officer at Caisse de dépôt. Apart from cash, the limited partners will also provide Luge’s portfolio with access to their data.
The vehicle will invest in early-stage fintech companies, supplying between C$250,000 and C$2m.
The fund is being led by David Nault, former principal at VC firm iNovia Capital, and Karim Gillani, former head of corporate development at Xoom, an international remittance company that floated in 2013 before being acquired by its peer PayPal two years later.
Luge’s partners also include iNovia, whose managing partner Chris Arsenault helped recruit both Nault and Gillani. The firm will provide operational, back office, legal and reporting support in return for an investment return on the portfolio.