On September 26, 2023, Luge Capital announced the first close of its second fund, Luge Capital Fund II, raising CA$71 million towards a target of $100 million. The fund received investments from returning partners CDPQ, Desjardins, BDC Capital, Sun Life, iA, Fonds de solidarité FTQ, and newcomer Inovia Discovery Fund I. Focused on early-stage fintech startups in Canada and the U.S., the fund expands its scope to include verticalized fintech startups and those focusing on environmental, social, and governance (ESG) aspects.

The team, consisting of two general partners with diverse backgrounds in fintech, plans larger initial investments compared to their first fund. Luge Capital, operational since 2018, has a history of investing in North America's promising fintech companies and collaborates closely with its LPs. Their first fund, amounting to roughly $85 million, led to investments in 21 companies, including notable ones like Flinks, Plooto, Owl, Flare, and OneVest.

Key LPs commented on their ongoing support for Luge Capital. CDPQ emphasized its commitment to the Quebec fintech ecosystem, Desjardins highlighted its role in supporting fintech development, BDC Capital stressed on economic prosperity, Sun Life focused on fintech's role in innovation, iA Financial Group valued exclusive fintech access, and Fonds de solidarité FTQ underlined the need to support fintech entrepreneurs. Inovia, through Inovia Discovery Fund I, praised Luge Capital's reputation among fintech entrepreneurs in Canada and the U.S.

The fund's announcement was made at the Canada Fintech Forum 2023, where Luge Capital participated in various fintech discussions and panels.