Luge Capital, a Canadian fintech venture capital fund with a focus on AI, has opened for business after securing a $75 million investment pot from several Quebec-based financial institutions.
Luge was set up late last year, with Quebec-based credit union association Desjardins Group and local pension fund la Caisse both committing $25 million to the venture.
Sun Life Financial, the Fonds de Solidarité FTQ and La Capitale have all now added their backing to the fund, bringing it to $75 million, with Luge saying that it may grow further still, to $100 million.
Luge says that it is looking to participate in seed and Series A funding rounds, making investments of between $250,000 and $2 million in startups working to improve customer experiences, enhance efficiency for financial institutions and implement data-driven methods and AI for decision-making.
The fund is being led by two industry veterans; David Nault, who will be based in Montreal, and Karim Gillani, who will run a Toronto office.
"We are looking for young mission-driven companies that challenge how the world interacts with financial services. We invest in bold teams that demonstrate passion, manage risk and optimize for performance," says Gillani.