General Catalyst Plans First Investment in Saudi Arabia

General Catalyst is swiftly widening its global footprint. On the heels of acquiring two smaller venture firms in India and Germany, the firm plans to lead an investment in Riyadh, Saudi Arabia-based financial technology startup Lean Technologies, according to a person with direct knowledge of the firm’s investments.

The deal would represent General Catalyst’s first investment in Saudi Arabia, the person said, and is a sign Silicon Valley investors are changing their stance on backing startups in the country. 

While many VC firms raised cash from the country’s massive sovereign wealth funds, they’ve made few startup investments in the region, in part due to the government’s human rights abuses and a dearth of fast-growing startups.  Investors must also be willing to stomach a foreign regulatory landscape which could introduce complications.