There is empirical evidence that Venture capital (VC) firms foster innovation in the U.S. As a result, many foreign governments have provided incentives to VC investments in the hope that this will translate into venture innovation. Yet, we know less about the effect of VCs on innovation abroad. Furthermore, the presence of weaker regulatory and enforcement systems may create obstacles for such effect, and these regulatory issues are among the top concerns of VCs globally. This paper argues that experienced VCs may overcome these legal hurdles, but where the experience was acquired --in the country of interest or abroad-- is important, and so is whether the problems derive from weak business regulation, or from weak intellectual property enforcement. Using a sample of VC-backed biotech ventures, I find that VC experience nurtures venture innovation of U.S. ventures, hence replicating the findings of previous research. However, an analysis of this result in a sample of 329 foreign ventures from 21 countries uncovers the subtleties of this effect. I find that VC local experience compensates for a weaker private sector regulation. [ABSTRACT FROM AUTHOR]