General Catalyst backs Saudi startup amid human rights concerns
- General Catalyst is set to invest in Lean Technology, a fintech startup in Saudi Arabia, which will be its first investment in the region.
- This investment trend reflects a broader interest among U.S. investors, including Coatue Management's backing of Tamara, a lending platform.
- Despite concerns about human rights in Saudi Arabia, the Public Investment Fund is fostering relationships with U.S. venture capital to further boost local startup investments.
Saudi Arabia is witnessing a shift in investment attitudes despite its ongoing human rights issues. General Catalyst is making its debut investment in the Middle Eastern nation by backing Lean Technology, a fintech startup based in Saudi Arabia. This move follows a trend where U.S.-based investors are increasingly interested in Saudi startups, with notable examples including Tamara, a lending platform that secured investments from Coatue Management. Additionally, a16z-backed Flow has established a co-living space in Riyadh, indicating a growing investment landscape in the region. To facilitate this influx of investment, Saudi Arabia's Public Investment Fund has partnered with several U.S. venture capital firms like a16z and Craft Ventures, aiming to encourage investments in local startups. Nevertheless, General Catalyst is not listed among those firms supported by the Public Investment Fund's database, which highlights the complexities in international investment dynamics in the context of Saudi Arabia's economic landscape.